Cyber security has always been complicated for accounting firms. Companies in this industry hold detailed financial records and personal data, making them a highly attractive target for threat actors. Unfortunately, many firms still haven’t adjusted their security measures accordingly. And if a breach does occur, their entire reputation could be at stake.
Fortunately, there’s plenty you can do to address this risk and avoid becoming the next major news story.
Cyber Security for Accounting Firms: What Changed in 2026?
What’s so unique about cyber security for accounting firms in 2026? There are several factors coming into play that have made this industry particularly vulnerable:
- New Technologies: While the development of artificial intelligence (AI) technology has done much to help businesses thrive, it has also introduced risk. IBM’s 2026 Cost of a Data Breach report summarises this danger nicely – AI-powered cyber-attacks have increased by 56% over the last year.
- Harsher Regulations: In an attempt to address the rising tide of data breaches, governments across the world have tightened data protection regulations. Compliance requirements are steeper, and the consequences of breaking them harsher than ever before.
- More Public Awareness: After several years of major breaches hitting mainstream news seemingly every week, clients are growing wary. They don’t want your firm to be the next company responsible for their personal information leaking online.
In light of these changes, a strong security posture is no longer optional. It’s a business necessity.
How to Use This Checklist
- Work through each section of the following checklist, one at a time. Answer honestly, and take note of any areas where your firm is currently falling short.
- Prioritise gaps based on their potential business impact. Divide them into “Quick wins” and “long-term investments”.
- Implement your changes using the priority list you just created. Work slowly and in phases, so that any issues can be swiftly resolved.
- Monitor and adjust as needed.
- Repeat this process at least once per year, or after any major changes occur within your firm.
The Cyber Security & Compliance Checklist
Privacy Act and Data Governance
- Do you have a current, published privacy policy that accurately reflects how your firm collects, uses, and discloses personal information?
- Have you identified all the categories of personal information your firm holds, and documented where they are stored?
- Do you have a written process for responding to a data breach, including internal escalation, OAIC notification, and client communication?
- Are data retention and disposal procedures documented and followed across all formats?
- Have third-party vendors with access to client data been assessed for their own privacy and security practices?
Access Controls and Identity Management
- Is multi-factor authentication (MFA) enabled across all systems that hold client data?
- Are user accounts reviewed regularly, and removed or disabled promptly when staff leave or change roles?
- Are administrative privileges limited to those who genuinely need them, and reviewed periodically?
- Are client portal and document sharing platforms secured with appropriate authentication requirements?
Patch Management and Software Currency
- Are operating systems and applications updated on a defined, regular schedule?
- Has all end-of-life software been identified and either replaced or formally risk-assessed?
- Is your practice management software on a current, vendor-supported version?
Backup and Recovery
- Are backups running automatically on a defined schedule?
- Are you following the 3-2-1 rule (3 copies of data, across 2 different mediums, 1 of which is offsite or in the cloud)?
- Is backup data stored independently from your primary systems, so that a ransomware attack affecting your primary environment doesn’t also affect your backups?
- Has your restoration process been tested recently, and results documented?
- Is the recovery time for a full restoration understood and acceptable to the company?
Email Security
- Are SPF, DKIM, and DMARC email authentication records configured for your domain?
- Is anti-phishing and anti-malware filtering active across all email accounts?
- Do staff know how to identify phishing emails and where to report them?
- Is there a process for verifying unusual payment or transfer requests received by email (particularly those appearing to come from clients or senior staff)?
Staff Awareness and Training
- Have all staff completed cyber security awareness training in the past twelve months?
- Does training specifically address phishing, business email compromise, and safe data handling?
- Are new staff trained before they receive access to client systems?
- Is there a clear internal reporting channel for staff who receive suspicious communications or observe unusual system behaviour?
Incident Response Preparedness
- Does the firm have a documented incident response plan that covers the steps to take when a breach or suspected breach occurs?
- Does the plan address OAIC notification obligations and client communication requirements?
- Are the relevant contacts (IT support, legal counsel, insurer, OAIC) documented and accessible to the people who would need them in an incident?
- Has the plan been reviewed in the past twelve months?
Defend Your Firm Against Modern Threats
Compliance and cyber security for accounting firms has always been a challenge. But it’s not impossible to reduce your risk. Follow the checklist provided in this article, and correct any gaps you notice. This alone will bring you into much closer alignment with regulations, protect sensitive information, and preserve trust.
Need more assistance? iCare Cyber is here to help. We’ve spent years working alongside businesses in highly-regulated sectors, and know exactly how to keep you safe. Learn more about our cyber security solutions now.