Why Every Small Tax Firm Needs an Audit-Ready WISP
Why Small Tax Firms Are Prime Targets for Data Theft
When most people think of cyberattacks, they picture headlines about Amazon, Target, or Equifax. But cybercriminals don’t care how big your firm is — they care about one thing: data worth stealing. And few small businesses hold more sensitive data than tax preparers and accounting firms.
Case Study: Penalties for Failing to Implement a WISP
In October 2025, New York Attorney General Letitia James announced a settlement with Wojeski & Company, a public accounting firm that failed to protect client data. The firm suffered two major data breaches, exposing thousands of Social Security numbers, tax documents, and financial records. The reasons?
- No formal cybersecurity plan
- Unencrypted sensitive data
- A year-long delay in notifying victims
The outcome:
- Over 4,700 New Yorkers impacted
- $60,000 in state penalties
- And long-term damage to client trust
This case proves that compliance isn’t optional — it’s critical.
The FTC Safeguards Rule: What It Means for Tax Firms
Under the FTC’s Safeguards Rule, all financial institutions — including tax preparers — must maintain a Written Information Security Plan (WISP). A WISP is not a document you create once and forget. It’s a living blueprint that defines how your firm:
- Manages and secures client data
- Detects and responds to breaches
- Trains staff on cybersecurity best practices
Failure to implement one isn’t just a security lapse — it’s a legal risk.
Why Small Firms Are Prime Cyber Targets
Hackers know smaller firms are easier targets. They look for firms that:
- Store client data without encryption
- Lack continuous security monitoring
- Skip regular updates and training
- Don’t have a breach response plan
To cybercriminals, your W-2s, SSNs, and tax files are just as valuable as cash. In cybersecurity, opportunity equals profit.
Protect Your Clients and Your Reputation
Your clients trust you with their most personal financial data. Protecting that trust should be a top priority.
At WISP Builder, we help accounting and tax firms build, implement, and maintain compliant Written Information Security Plans that satisfy FTC, IRS, and state-level cybersecurity regulations.
Whether you’re a solo practitioner or managing a team of CPAs, we make compliance simple, affordable, and reliable.
Don’t wait until a breach exposes your firm’s weaknesses. Start building your WISP today — before it’s too late.
