Cybersecurity in accounting: how to protect financial data and reduce risk in your business

In summary:

• Cybersecurity in accounting protects financial data, systems, and processes from cyberattacks, data breaches, and unauthorized access.
• Accounting is a primary target for cyberattacks, and a lack of security can lead to financial losses, reputational risks, and legal consequences.
• To ensure security, companies must implement risk assessments, access controls, employee training, and secure IT infrastructure.

Accounting is one of a company's most critical functions, processing the financial data that determines its stability and growth. However, this is precisely why accounting is increasingly becoming a target for cyberattacks. Data breaches, payment fraud, and unauthorized access can cause not only financial losses but also significantly impact a company's reputation and credibility.

These threats are not merely theoretical. Real-world examples show that even well-known companies suffer losses in the millions: in 2023, the British retailer Marks & Spencer experienced a significant drop in profits and hundreds of millions of pounds in costs following a cyberattack that halted operations and affected both customer data and financial processes. These incidents demonstrate that cybersecurity in accounting is not just a theoretical necessity—it is an urgent requirement for a company's stability and reliability.

What is cybersecurity?

Cybersecurity is the combination of technologies, processes, and people that protect systems, networks, and data from unauthorized access, attacks, and damage. Essentially, cybersecurity is a company's digital defense against financial, data, and reputational losses. With the evolution of technology and criminal networks in recent years, cyberattacks have become one of the greatest economic threats globally.

The IBM Cost of a Data Breach Report 2025 indicates that the global average cost of a data breach is approximately $4.44 million per incident. This clearly shows that cyber incidents impose massive direct costs on companies—not only for IT repairs but also through legal consequences, reputational damage, and operational downtime. This affects Latvia directly as well: in the fourth quarter of 2025, a historically high number of CERT.LV manually processed cyber incidents (923) was recorded—a sixfold increase since 2022, while the number of compromised devices has increased eightfold, reaching a record high (731,783) during the reporting period.

Why is cybersecurity critical in accounting?

Accounting is the central hub of a company where all operations and data converge. It provides not only an opportunity to access sensitive data but also access to bank accounts, which is particularly valuable to cybercriminals. Therefore, cybersecurity in accounting is critical—an attack can affect the entire company's ability to survive.

Accounting stores sensitive financial data:

• bank account information;
• customer and supplier payment data;
• salary and tax information;
• financial statements and budgets.

Cyberattacks can result in the loss of not only company funds but also information about potential future targets, such as clients and suppliers. Cyberattacks can completely paralyze accounting processes: blocking payment systems, denying access to payroll data, distorting financial statements, and more.

And it is not always possible to detect an attack in time. The average time required to detect and contain a cyberattack can reach up to 277 days (IBM). This is precisely why the GDPR stipulatesthat financial data must be specially protected, and breaches can cost up to 20 million EUR or 4% of global turnover. Such an example has already occurred in Latvia—in 2024, the Riga Regional Court upheld the Data State Inspectorate's decision to impose a €1.2 million GDPR fine on the company SIA “Tet” for inadequate personal data processing and negligence in data protection.

How to implement and ensure cybersecurity in accounting?

Cybersecurity is not something an accountant can implement alone—it requires a person or an outsourced service specializing in this field. However, the company's involvement is also essential. Let us look at the practical steps that must be taken to implement and ensure cybersecurity in accounting.

Assess risks in accounting processes

To understand how to protect your company's data, it is important to identify internal processes, data storage locations, and the circle of people who have access to them.

• Identify all financial data flow points: invoice processing, payment authorization, payroll reports;
• Evaluate which processes are most vulnerable to phishing, data leaks, and fraud—use real-life incident examples and recommendations from Latvian companies (CERT.LV, cybersecurity guidelines for Latvian companies).
• Use a risk matrix: a combination of impact and probability.

Implement strict access control

Once processes, data locations, and access permissions are clearly defined, it is time to evaluate who truly requires access and determine the appropriate connection methods.

• Grant employees access only to the data necessary for their roles (the principle of least privilege);
• Implement two-factor authentication for bank accounts and accounting systems;
• Regularly review access rights (NIST Cybersecurity Framework).

Train employees and foster a culture of cybersecurity

It is essential that cybersecurity awareness extends beyond a single individual to the entire company. A single employee failing to follow established requirements is enough to open the door to cybercriminals. It is no coincidence that 90% of attacks begin with human error (IBM, 2025).

• Conduct regular phishing tests and training sessions;
• Clearly define protocols for handling suspicious emails;
• Promote a culture where reporting incidents is mandatory rather than punishable.

Secure technology infrastructure

Once it is clear what needs to be protected and where, and cybersecurity protocols for employees are in place, it is time to implement various processes within the infrastructure itself. While this can be one of the most complex, time-consuming, and costly processes, it pays off in the long run.

• Utilize the latest updates and patch management;
• Encrypt sensitive data, including invoices and banking information;
• Perform regular backups and restoration tests;
• Consider endpoint protection and SIEM systems for financial data.

Monitoring and incident response

However, it is no secret that it is impossible to protect yourself from absolutely everything. Therefore, it is important to be prepared before something happens and to prevent panic in the event of an incident.

• Create an incident detection and response plan;
• Regularly monitor the performance of accounting systems;
• Document incidents and learn from them.

A practical 30/60/90-day plan for accounting cybersecurity

Future outlook

Cybersecurity in accounting is not just a technical obligation—it is a strategic investment that allows a company to maintain control over its data and process security. Every invoice, payment, and financial document is a potential gateway for threats, and only a proactive approach allows a company to turn risks into confidence and stability. Careful risk assessment, adherence to access controls, and employee training create an environment where financial data is protected and business operations are secure.

Looking ahead, companies that consistently develop a culture of cybersecurity gain a competitive advantage. They can not only avoid financial and reputational losses but also strengthen client trust, maintain operational continuity, and feel confident in the security of their financial systems, even in a changing digital landscape. Cybersecurity is becoming the foundation of sustainable development, allowing a company to grow securely and adapt to future challenges.

Frequently asked questions

What is cybersecurity in accounting?

Cybersecurity in accounting is a set of measures that protects financial data, accounting systems, and processes from cyberattacks, data breaches, and unauthorized access. It includes technological solutions, access controls, and employee training to ensure the secure processing of financial data.

Why is cybersecurity particularly important in accounting?

Cybersecurity in accounting is critical because this field handles sensitive financial data, which is a frequent target for cyberattacks. A lack of security can lead to financial losses, reputational damage, and legal consequences, making it essential for companies to ensure data protection and system security.

What are the first steps to implementing cybersecurity in accounting?

To implement cybersecurity in accounting, it is recommended to start with the following steps:

• identify where financial data is stored and processed;
• assess potential risks and vulnerabilities;
• restrict access to data (only to necessary employees);
• implement two-factor authentication;
• regularly perform data backups and conduct employee training.

This approach helps to gradually build a secure and reliable accounting environment.