The TOP Cyber threats faced by Accountants

According to ICEAW The 2025 landscape of cyber threats continues to evolve. With the growing use of digital tools and the increasing sophistication of cybercriminals, accountants must be vigilant in identifying and proactively mitigating these risks. This blog highlights the most significant current cyber threats facing accountants in 2025, their potential impacts, and offers real-time practical ways to keep your businesses safe in the current environment. By understanding the cyber risks you face in 2025, implementing effective strategies and investing in cyber insurance, it is possible to protect your practice and its clients from the impacts of cyber incidents.

(1) Ransomware Attacks these form one of the most formidable threats to accountancy practices in 2025. Cybercriminals are increasingly targeting businesses that handle sensitive financial data knowing that the potential for profit is high. In a ransomware attack, hackers will encrypt a firm’s data and ask for a ransom to unlock it.

Impact: The financial implications can be substantial. According to the UK’s National Cyber Security Centre (NSCS), ransomware attacks are predicted to cost UK businesses over £1 billion annually. For accountants, this can mean prolonged downtime, loss of client trust and significant financial losses. Firms may find themselves unable to access critical financial records e.g. during peak periods such as tax season.

Stay safe by implementing:

# Regular Back-Ups - a robust data back-up strategy, storing back-ups securely, preferably offline or on a stand-alone drive or in a separate cloud environment.

# Employee Training - training sessions on recognising phishing attempts or other cyber threats to help reduce the risk of ransomware infections.

# Incident Response Plan - a clear incident response plan ensures quick and effective action should a ransomware attack occur.

(2) Phishing and Social Engineering Attacks are becoming more sophisticated with cybercriminals using social engineering tactics to trick employees into divulging sensitive information. Accountants should be particularly aware of these tactics as attackers can often impersonate trusted sources such as colleagues or clients.

Impact: Phishing attacks can lead to data breaches and financial losses. The Government 2023 Cybersecurity Breaches Survey found that 84% of UK businesses experienced phishing attacks and this trend is set to continue. For accountants, falling victim to a phishing scam can result in the exposure of sensitive client information leading to potential regulatory and legal issues as well as loss of client trust and reputational damage.

Stay safe by implementing:

# Security Awareness Training which is crucial for employees to help them recognise any phishing attempts and social engineering tactics. This training should include real-world examples relevant to your industry.

# Multi-Factor Authentication which adds an extra layer of security, making it much more difficult which for attackers to gain access to sensitive systems, even if they gain normal log-in credentials.

(3) Data Breaches and Insider Threats are a real threat to prime targets such as Accountants who act as custodians of sensitive financial information. This risk is continuing to rise driven by the increasing sophistication of cybercriminals and the prevalence of insider threats which can arise from employees who inadvertently compromise data or even act maliciously.

Impact: The fallout from a data breach can be severe including significant remediation costs, loss of client trust and the risk of large penalties, fines and regulatory actions. According to IBM, in 2023 the average cost of a data breach to UK businesses was approximately £3.4 million.

Stay safe by implementing:

# Access Controls strict controls based upon job roles to limit any exposure and risk to sensitive data.

# Regular Audits can be conducted to review data access and identify any potential insider Threats that may exist.

(4) Business Email Compromise (BEC) is a sophisticated scam that targets UK businessess particularly those in the financial sector. In 2025, BEC attacks are expected to become more prevalent with cybercriminals impersonating executives or trusted partners to trick employees into transferring funds or sharing sensitive information.

Impact: BEC scams can lead to large financial losses for UK accountants who are prime targets as they often handle large transactions and sensitive financial information.

Stay safe by implementing:

# Verification Procedures for any financial transactions to prevent BEC scams. Employees should be trained to verify requests for fund transfers through multiple channels.

# Multi-Factor Authentication which adds an extra layer of security, making it much more difficult for attackers to gain access to sensitive systems, even if they gain normal log-in credentials

(5) Supply Chain Attacks is a rising issue as accountants can often rely on third-party vendors for various services. Cybercriminals may target software providers or cloud services used by accounting firms to gain access to sensitive data.

Impact: These attacks can lead to data breaches and operational disruptions. The resultant consequences include loss of client trust, regulatory penalties, fines and remediation costs.

Stay safe by implementing:

# Vendor Risk Management Programme to assess the security posture and risk of any third-parties used including any sub-contractors.

How else can accountancy firms protect their practice?

In addition to implementing robust cybersecurity measures, investing in cyber insurance should be a vital part of your risk management strategy. It provides financial protection against the costs associated with cyber incidents, helping you to recover from an attack and reduce their impact.

Cyber Insurance provides:

# FIRST PARTY COVER which includes costs associated with responding to a cyber Incident such as forensic investigation, legal fees and business interruption losses.

# THIRD PARTY COVER should a data breach affect clients or third-parties. This coverage will also help with legal expenses and claims relating to negligence.

How does traditional cyber Insurance work when you need it?

# Immediate notification should be made to the insurer as soon as a cyber incident is detected or even when just suspected

# Access to resources include a 24/7/365 helpline for immediate assistance and advice and This will include the appointment of specialist help for your business

# Investigation and Assessment of your incident to determine the potential damage caused

# Coverage of costs as listed in your policy schedule less any excess

#Post-incident support including resources for improving cybersecurity measures

How is AccountancyPro cyber insurance different?

In addition to the above as offered by traditional insurers and alongside excellent premium rates, we include a FREE RISK ASSESSMENT of your network and domain at quotation stage. This is conducted in seconds and is totally non-intrusive. This will identify any initial vulnerabilities that currently exist including any data leaks PLUS our insurer expert team will help you resolve any issues where possible.

Our insurers are PROACTIVE by continually monitoring your domain and network for threats and even advising you in advance of new threats that may develop throughout the policy year. This fully MODERN approach is the best way to keep up with the fast-evolving cyber landscape.

DON’T let your business get left behind, take control and obtain the protection that has the ability to rapidly evolve as risks occur - VITAL and MODERN cyber Insurance from AccountancyPro!

We aim to be the UK Accountancy Sector's Broker of choice!!