What CPA Firms Get Wrong About Cyber Risk (and How to Fix It)

As trusted advisors to businesses and stewards of sensitive financial data, CPA firms face a unique cyber risk profile. But too many firms—especially small and midsize practices—still operate under dangerous misconceptions about cybersecurity.

Hackers don’t care how large your firm is. They care that you’re connected to money, taxes, payroll systems, and personally identifiable information (PII). That makes every CPA firm a target.

Here are the top five things CPA firms get wrong about cyber risk—and how to fix them before it damages your firm’s reputation, client trust, or financial future.

❌ MYTH #1: “We’re too small to be a target.”

The Reality:
Hackers routinely go after small firms. Why? Because they often lack strong security controls and have direct access to banking credentials, IRS e-Services, and client PII.

Fix It:
Stop thinking you're under the radar. The IRS, AICPA, and cyber insurers all expect even small firms to have fundamental protections in place—like multi-factor authentication (MFA), secure backups, and documented policies.

❌ MYTH #2: “Our IT provider handles our cybersecurity.”

The Reality:
Most IT providers focus on uptime, help desk tickets, and patching—not defending against evolving cyber threats. Many don’t offer risk assessments, penetration testing, or documentation that would stand up in court or with insurance carriers.

Fix It:
Verify that your IT partner has specific cybersecurity expertise—or bring in a firm that does. Ask about threat detection, incident response, user training, and documented policies. IT is not the same as security.

❌ MYTH #3: “We have cyber insurance, so we’re covered.”

The Reality:
Carriers are getting stricter. Many are now denying claims when basic controls (like MFA or endpoint protection) aren’t in place—or when firms can’t prove their security posture with documentation.

Fix It:
Review your policy carefully and understand the fine print. Get help aligning your cybersecurity controls with what your insurer actually expects—and keep records to prove it.

❌ MYTH #4: “We don’t have anything worth stealing.”

The Reality:
You have W-2s, tax returns, financial statements, banking info, IRS login credentials, and cloud accounting access. That’s a gold mine for attackers.

Fix It:
Think beyond client data. Cyberattacks can lock you out of your own files, steal funds, or destroy client confidence. Security protects your reputation, operations, and referrals.

❌ MYTH #5: “Cybersecurity is too expensive for a firm like ours.”

The Reality:
A single ransomware incident or payroll fraud event can cost more than your annual profits—and expose you to lawsuits or regulatory scrutiny. Fortunately, some of the highest-impact security measures are affordable.

Fix It:
Start with what matters most: MFA, phishing-resistant email protection, secure and tested backups, endpoint detection, and a basic incident response plan. You don’t need to do everything—just enough to be defensible.

✅ What Smart CPA Firms Are Doing Instead

CPA firms that want to stay competitive—and protected—are taking simple but strategic steps:

1. Getting a Cyber Risk Assessment:
   Understand where your actual exposure is and how it ties to your systems, people, and client data.

2. Building a Defensible Cybersecurity Program:
   Focus on manageable controls that reduce real-world risk and satisfy insurance and IRS expectations.

3. Documenting Policies and Protections:
   Good security without documentation won’t help you in court or with a carrier.

4. Training Your Staff (and Yourself):
   Many breaches start with a single email. Regular training and phishing simulations can stop them.

You Protect Your Clients' Finances.

Now Protect Your Firm.

At Bawn, we work with CPA firms across the country to reduce their cyber liability, qualify for better insurance coverage, and meet the expectations of clients and regulators alike.

→ Ready to find out where your firm's biggest cyber exposure lies? Book a complimentary assessment today.