As financial processes transition online, the risk of cyberattacks increases. The financial close process is a particularly vulnerable period, so implementing certain security measures is crucial for a company to protect its valuable assets.
Increased Risk of Cyberattacks on Financial Close Process
The financial close process is more vulnerable to attacks due to the large amount of data and financial information available upon closing. Because systems are connected, they provide a substantial attack surface for criminals. The data and large payments would present a significant loss if hijacked by a cyberattacker, which could damage the organization’s reputation and potentially lead to substantial client loss.
Common Attack Vectors
Cyberattackers employ a range of methods to target companies. Below are a few common ones to look out for.
Phishing
Phishing is when attackers send an email or pop-up to an employee, claiming to be from a recognizable organization. Employees may trust the scam because of the reputable name, opening the door for an attack.
A good indicator of phishing is if the message uses the word “kindly” frequently — this flag and other strange sentences may indicate the email is likely from a cybercriminal and not the real company.
Ransomware
Attackers commandeer the entire financial system during the closing process and demand payment, or the organization will lose access forever. They also might threaten to sell the information on the dark web. Unfortunately, paying the ransom could lead to further losses or inspire future attacks.
Business Email Compromise
In business email compromise attacks, hackers impersonate company officials in emails to trick employees into paying a sum or sharing critical information. AI is a common tool used here to give the impression of a trusted executive.
Practical Steps to Strengthen Security Controls
While cyberattacks during the financial close process are daunting, there are steps organizations can take to protect their information.
1. Update Software Regularly
Regular updates ensure the latest cybersecurity measures are present on a system to protect it against attacks. Enable automatic updates to keep everything up to date.
2. Use Strong Passwords and Multi-Factor Authentication
Create strong passwords and encourage employees to do the same. This makes it harder for attackers to access sensitive accounts and update them regularly to avoid breaches. Consider downloading a password manager to keep track of passwords.
Multi-factor authentication adds an extra layer of protection between the attacker and sensitive data. Enable it for all access points to create a strong barrier.
3. Manage Data
Encrypt data when the financial process closes to keep it secure. Be sure to frequently back up devices and systems to save information in case of a breach. Consider asking for less information from clients to limit the amount of data the organization possesses.
4. Collaborate Across Departments and Stakeholders
Ensure the cybersecurity team connects with other departments within the organization to maintain secure protocols and create awareness incentives. A cybersecurity culture lessens risks.
Communicate with stakeholders about the importance of cybersecurity so they understand its significance and allocate resources to prevent and address attacks. Collaboration can ensure multiple lines of defense and involve all parties to ensure consistent protocol.
5. Create a Cybersecurity Plan
Create a proactive plan, not a reactive one. Implement a protocol now to prevent issues later. Assign employees specific duties in the event of an attack to minimize potential disruptions.
6. Separate Networks
Separate sensitive information into categories so that if an attacker accesses one part, they do not gain access to the entire set of information.
Importance of Protecting from Cyber Threats
Cyber threats are multiplying, and an organization’s finances are often the most vulnerable. Businesses can help employees understand cybersecurity and locate anomalies to prevent attacks early and avoid significant losses. Providing a cybercrime class or handbook is helpful in educating and involving team members on best practices.
Maintain robust security measures throughout the organization, with a particular focus on financial security during the closing process. Monitoring processes continuously as cyberthreats evolve is essential to ensure consistent security. Consider even allocating time to view the dark web and locate potential threats early.
Protect the Financial Close Process
The financial close process is particularly vulnerable to cyberattacks due to the large amount of information and funds available. Taking proper precautions prevents damage and disruption from attacks, while also easing a business leader’s peace of mind.
