The Aftermath of the IRS Data Breach: Vital Steps for Every CPA Firm
The Largest Data Breach in History
In the largest IRS data breach to date, sensitive information of numerous taxpayers has been compromised, revealing serious vulnerabilities within IRS systems. Charles Littlejohn, a former IRS contractor, orchestrated this data theft, affecting many high-net-worth individuals and entities.
In response the IRS has implemented several key security enhancements to fortify its defenses against future threats. As outlined in an insightful article from Accounting Today, these measures include enhancing protective security controls, tightening access to sensitive information, and employing more robust monitoring systems around the clock. For a detailed breakdown of these measures and their implications for tax professionals, we highly recommend reading the full article available here.
Additional Protective Steps for your Firm
To further protect themselves and their clients, CPA firms should consider implementing the following steps:
Regular Operational Security Training: Educate staff regularly on the latest cybersecurity practices and phishing prevention.
Two-Factor Authentication: Implement two-factor authentication for an additional layer of security.
Secure Client Communications: Utilize encrypted communication channels for sharing sensitive information with clients.
Regular Software Updates: Keep all systems and software up to date to defend against known vulnerabilities.
Data Encryption: Encrypt sensitive data, both when it is being transmitted and while it is stored.
Incident Response Plan: Develop and maintain an incident response plan to quickly address any security breaches.
Regular Security Audits: Perform security audits and vulnerability assessments regularly to identify and address potential security gaps.
As fellow tax professionals, we recognize the importance of staying vigilant and informed, especially in the wake of significant security breaches like the recent IRS incident. If you have any questions about how these developments might impact your CPA Firm, contact us.
