Accountants are unaware of cyber data processing dangers

Accountants are unaware of cyber data processing dangers

An accountant’s job to protect household and business information from cyber danger is a year-round responsibility. This is especially the case during tax season. Even though tax preparers are reluctant to switch to a computer-based document management system, computers are a part of their operations during tax season to expedite delivery to the Internal Revenue Service (IRS).

This may improve workflow for accountants during a busy season, but not protecting these files that have with Social Security numbers or W-2’s inside can be just as detrimental to the client as if the employee left their information inside filing cabinets. A recent survey of over 600 National Association of Tax Professionals (NATP) members presented alarming findings. Travelers Insurance, a business that works with NATP and risk management, facilitated the poll.

More than half of tax professionals are unfamiliar with the danger of cyber attacks, such as viruses, data breaches or forms of identity theft, according to Accounting Today. If accountants do not place these files in a secure data processes folder or cloud-based document management system, they are not doing enough to ensure the privacy of their clientele. Be sure they’re protecting your data properly.

“Tax professionals need to prepare to withstand an unexpected event given the sensitive data they work with on a daily basis,” Travelers Insurance Executive Vice President Marc Schmittlein said in the press release.

On top of that, 45 percent of individuals were unsure if they employer has cyber liability coverage in case a computer at their business is subjected to a data breach. A data service company has the tools that can help protect your data from cyber danger by storing their files in a guarded location.

Tab Service Company is a Chicago based company with over 53 years of experience as a data processing service provider.  We provide business with outsourcing solutions for document scanning services, data entry services and mailing/lettershop services.  As a SOC2-approved organization, we apply industry-best practices to our approach with clients.