CPA Firm Reports Data Breach

There were over 3,000 data breaches reported by U.S. based businesses in 2023 and 2024. And studies show that 60% of small businesses end up closing their doors within 6 months of a data breach. Why? The time and money spent on cleaning up damage caused by a cyber attack is considerable, not to mention the time it takes to rebuild your client’s trust. What should you do in case of a data breach, and how could creating your IRS WISP using WISP Builder help you in this situation? To find the answers, let’s look at a real life example of a tax accounting firm who has gone through a data breach recently.

According to an article in JDSUPRA®, a Texas-based CPA firm of 25 employees that focuses on financial and tax services to individuals and businesses reported a data breach to the Attorney General of Maine after discovering unauthorized access to its computer network. According to this source, the breach involved an external party gaining access to and removing files containing sensitive client information, such as names, Social Security numbers, dates of birth, and addresses.

This type of cyberattack could happen to any of us, and this Texas-based CPA firm did the right thing by taking the proper steps to investigate and communicate the situation to the authorities and their clients. Reports say that the firm hired cybersecurity experts to investigate the incident, and following the almost 4 month investigation, the CPA firm began notifying clients of the incident. These clients could take extra steps to protect their identity knowing that their private information is in the hands of cyber thieves.

These stories are happening every day. This is why we take creating a cyber security plan seriously at WISP Builder. When creating a cyber security plan, the process means more than just checking off the compliance box for the FTC and IRS. Your cybersecurity plan is your first and second line of defense to help you proactively consider every entry point potential hackers could take. And when done well, your WISP prepares you with a quick action plan, in the case of a data breach, so that every employee knows what to do and how to make it right.

There is a considerable financial and time cost of a cyber attack investigation when you need to hire cybersecurity investigators and take time away from your clients in order to clean up a breach.

Creating a cyber security plan with WISP Builder prepares you for a cybersecurity breach. Here’s how:

WISP Builder provides continued resources for employee training to keep cybersecurity awareness top of mind.
WISP Builder provides easy access to your WISP for all employees so they can stay up to date on the company’s protocols for security.
WISP Builder houses the documentation and standards of every level of access to the client’s personal information for both employees and third party vendors.
WISP Builder helps you to easily access the quick action steps to respond to a data breach laid out in advance of how to find, communicate, and report the breach to minimize damages.
WISP Builder stores your WISP and tracks authorized signers for proof of compliance to the IRS and FTC when reporting the attack.
WISP Builder helps you to create an effective, robust WISP that every employee and third party vendor is required to sign.
Plus, with the ease of continued updates to your WISP any time you hire a new employee or third party vendor, or when there is a new trend in cyberthreats, your WISP evolves with your business to continually help you to keep your security plan strong.

The stats show us that at least 3,000 businesses were impacted by a data breach last year, and this threat isn’t going away – it’s just getting bigger. Creating a cyber security plan with WISP Builder helps build, maintain, and train your employees on an effective Written Information Security Plan (WISP). It is the best step you can take to begin to put your own security plan into place and be ready for what is to come in the future.

Sources: JDSUPRA and Cybercrime Magazine

https://www.jdsupra.com/legalnews/wonder-cpa-firm-announces-data-breach-9560058/