Cybercriminals are increasingly targeting CPA and accounting firms through business email compromise (BEC)—a sophisticated cyberattack that leverages trust and routine processes to exploit financial and sensitive data. Unlike traditional phishing campaigns, BEC is deliberate and targeted, making it one of the most costly threats to firms today.
For CPA firms, where accuracy and regulatory compliance are top concerns, and for accounting firms that manage high volumes of financial transactions, a successful attack can lead to significant financial losses, regulatory scrutiny and irreparable damage to client relationships.
Why CPA & Accounting Firms are Prime Targets
BEC attacks thrive in industries with frequent and high-stakes financial transactions—making CPA and accounting firms prime targets. CPA firms often handle client audits, tax filings and compliance work, while accounting firms may focus more on bookkeeping, payroll processing and accounts payable management. Both are attractive to cybercriminals due to the volume of sensitive client data and financial transactions they process.
Additionally, CPA firms operate under stringent compliance frameworks like SOX, while accounting firms may manage financial operations for businesses subject to PCI-DSS or other industry-specific regulations. A breach doesn’t just result in immediate financial losses; it can also trigger regulatory investigations and reputational harm that undermines client trust.
How Business Email Compromise Works
BEC attacks typically begin with reconnaissance. Cybercriminals gather information about the firm and its employees through public sources like LinkedIn, company websites or press releases. Once they’ve identified key targets, they launch their attack.
One common approach involves impersonating an executive or client. For example, an email might appear to come from a managing partner requesting an urgent wire transfer to a vendor. These emails are designed to bypass skepticism by creating a sense of urgency or confidentiality, using phrases like:
- “Please handle this immediately. I’m unavailable for questions.”
- “This is time-sensitive—let’s keep it between us for now.”
Once the victim complies, the funds are sent to the attacker’s account, often making recovery impossible. In other cases, attackers use compromised email accounts to gain access to sensitive client data, which can then be sold or leveraged for additional attacks.
Recognizing the Signs of a BEC Attack
While BEC attacks are subtle, they often leave behind clues. CPA and accounting firms should remain vigilant for:
- Requests for financial transactions that deviate from established processes.
- Emails that emphasize urgency or confidentiality.
- Inconsistencies in email addresses, such as a single altered character (e.g., john.smith@firm.com vs john.sm1th@firm.com).
- Formatting errors or unusual language that doesn’t align with the sender’s typical style.
Building a Proactive Defense
Mitigating the risk of BEC requires a combination of awareness, policy enforcement and technology. CPA and accounting firms can take the following steps to strengthen their defenses:
Foster a Culture of Cybersecurity
Employee awareness is the foundation of any defense against BEC. Regular training sessions can help employees recognize phishing and BEC attempts, while simulated exercises reinforce good practices. Encouraging a culture where employees feel comfortable questioning unusual requests is equally important.
Reinforce Internal Protocols
Clear and enforced policies can prevent many BEC attempts from succeeding. CPA firms should require verbal confirmation for wire transfers and changes to vendor payment details. Accounting firms, which often handle recurring vendor payments or payroll, should implement protocols for verifying any changes to payment instructions or account details.
Adopt Advanced Threat Detection Tools
While traditional email filters provide a baseline of protection, they often fall short when it comes to detecting sophisticated attacks like business email compromise. To effectively combat these threats, firms need to embrace advanced detection tools that offer more comprehensive capabilities.
Solutions like extended detection and response (XDR) go beyond basic email filtering to provide a holistic view of an organization’s security environment. By integrating data from email, endpoints, networks and other systems, XDR helps identify patterns and anomalies that might otherwise go unnoticed. For example, it can detect unusual login attempts, unauthorized email forwarding rules or deviations in communication behavior that signal a potential attack.
XDR also leverages artificial intelligence and machine learning to analyze data in real time, enabling firms to respond to threats faster and with greater precision. Paired with continuous monitoring, these tools add a critical layer of defense against attackers who constantly adapt their techniques to bypass traditional security measures.
Develop an Incident Response Plan
Even the most prepared firms can fall victim to an attack. Having a comprehensive incident response plan ensures your firm can respond quickly to isolate affected systems, notify stakeholders and comply with regulatory requirements.
Protecting your Clients & your Reputation
BEC is a sophisticated threat, but with the right measures in place, CPA and accounting firms can protect their data, their clients and their reputations. By fostering a culture of awareness, reinforcing policies and adopting advanced defenses, firms can reduce their vulnerability and stay ahead of evolving threats.
Secure your Firm Against BEC
Business email compromise is one of the most pressing cybersecurity threats facing CPA and accounting firms. Learn how Netgain’s advanced solutions can help safeguard your firm from these sophisticated attacks. Contact us today to build a stronger cybersecurity foundation.