The Click That Caused Troubles: A Tax And Accounting Firm

The Internal Revenue Service warns tax professionals of email schemes during the filing season. An Austin-based CPA firm, Salling Madeley, PLLC, learned the hard way when a part-time employee fell victim to an email scam. The hacker was able to gain access to the firm’s files and uploaded and downloaded certain documents. Although the firm promptly shut down email access and notified authorities and clients, the potential for identity theft and filing of fraudulent tax returns had already occurred. The firm implemented cybersecurity measures, alerted clients to file their tax returns quickly, and provided credit monitoring for affected clients. The firm’s cyber insurance covered the cost of data forensics and client notifications. The article emphasizes the importance of protecting against email scams and the value of cyber insurance. It also highlights the need for firms to have cybersecurity measures in place, including two-factor authentication, anti-virus software, and VPNs.