We don’t need to tell you that data is one of your firm’s most valuable assets. And safeguarding your clients’ personally identifiable information (PII) is your obligation. Trust me, cyberattackers know the worth of that data, and they’ll stop at nothing to get it. That’s why creating, implementing and communicating a cybersecurity policy is important.
Your clients expect bank-level protection of their data. According to IBM’s Cost of a Data Breach Report 2024, a staggering 46% of breaches involved client PII in 2023. And 61% of small businesses were victims of a cyberattack last year. Threat actors are only getting smarter. And with the amount of PII your firm gathers and maintains…a data breach could mean the end for you and devastation for your clients. If that happens? Clients lose trust—big time.
So, what can you do to protect PII and ensure clients feel their data is safe with your firm? By being transparent about your firm’s cybersecurity policy and protective measures. Let’s discuss the nuts and bolts of PII protection, explore tools like identity protection PINs and outline actionable strategies to help you convey your commitment to data security.
Understanding PII
Accounting firms handle large amounts of PII on a daily basis. PII refers to any information that can identify an individual, including:
- Full name, including first name, last name and any middle name or initials
- Social Security Number (SSN)
- Financial information (e.g., credit card numbers, bank accounts, transaction histories)
- Home address, including both current and previous residences
- Phone numbers and email addresses
- Biometric data (e.g., fingerprint scans, facial recognition)
- Date of birth
The sensitivity of PII makes it a lucrative target for cybercriminals, which can lead to potential data breaches with devastating financial and reputational consequences. This is why your firm needs a cybersecurity policy. So, let’s talk about that.
Why a cybersecurity policy is crucial
A robust cybersecurity policy acts as a defensive shield, protecting PII from unauthorized access and misuse. This policy sets the groundwork for how your firm will secure PII and manage data privacy. Here are several reasons why incorporating a cybersecurity policy is important:
- It establishes clear protocols. A comprehensive policy defines clear guidelines and procedures for handling PII. It encompasses everything from data collection and storage to access control and disposal.
- It mitigates risk. By identifying potential vulnerabilities and implementing protective measures, a cybersecurity policy minimizes the risk of data breaches and cyberattacks.
- It ensures compliance. Regulatory bodies (i.e., the IRS) often require adherence to data protection standards. A well-crafted cybersecurity policy ensures compliance with these regulations and safeguards your firm from legal repercussions.
- It builds client trust. Proactively communicating your cybersecurity policy and PII protection measures helps reassure clients that their sensitive data is in safe hands—building client trust.
- It supports incident response. A cybersecurity policy should outline an incident response plan, detailing the steps to take in case of a data breach. Having a swift and effective response can minimize damage, restore operations and maintain client confidence.
By embedding PII protection into your cybersecurity policy, you establish a proactive stance on data security, mitigating risks and reinforcing your commitment to client confidentiality.
What you need to know about identity protection PINs
An effective tool in safeguarding PII is the identity protection PIN (IP PIN). The IP PIN is a six-digit number provided by the IRS that adds an extra layer of security for taxpayers. It prevents unauthorized use of their SSNs on federal tax returns.
To incorporate this into your firm’s services:
- Educate your clients. Offer informative sessions or resources about how these PINs function and their role in preventing identity theft.
- Promote usage. Encourage your clients to request and use these PINs each tax season.
- Integrate into communications. Highlight the use of IP PINs in your firm’s communication tools and marketing materials to show you encourage their use.
How to communicate PII protection
It’s not enough just to protect PII; you also need to ensure your clients (and prospective clients) know you take this seriously. Prioritizing this can help set your firm apart. Here’s how you can communicate your commitment to PII:
- Craft a security statement. Develop a clear and concise statement detailing your firm’s cybersecurity policy and incident response plans. Make it easily accessible on your website and other client touchpoints.
- Integrate security into marketing. Feature your security measures in marketing campaigns. For instance, include a section on cybersecurity policies and secure internal communication in online content, including social channels.
- Address client concerns. Be sure to proactively engage with your clients’ questions about data security. And use these interactions to reinforce your firm’s dedication to maintaining accurate records and secure communication.
Implementing security measures within your firm not only helps protect your clients’ sensitive data but also lays the groundwork for creating client trust. This becomes a competitive advantage, helping to set your firm apart from the competition and ensuring long-term client relationships—built on trust.
The role of technology in enhancing PII security
The right technologies and tools can significantly fortify your defenses against cyberthreats, which play a major role in improving PII security. Here are several technologies you need to implement in your tech stack.
- Cloud technology. Not only does the cloud provide scalable and secure solutions to protect your firm and your clients’ data, but you don’t have to worry about maintaining physical servers. Cloud providers often handle security updates, which help ensure your systems are protected against the latest threats without manual intervention.
- Endpoint detection and response (EDR). EDR combines AI and human-powered detection systems to monitor your devices and respond to threats in real time.
- Data encryption. Encrypting data when in transit and at rest protects sensitive information at all times.
Integrating these technologies—and listing them in your cybersecurity policy—not only protects client data but also shows that your firm embraces information security innovations. If implementing these solutions on your own sounds a bit overwhelming, then consider working with a partner to do it for you.
Protect PII with a cybersecurity policy
Do you know your firm’s security risk level? You should. The threat to your clients’ data is real, but so are the solutions. A strong cybersecurity policy, combined with the right tools and clear communication, does more than protect data—it shows clients they can trust you with their most sensitive information. That trust is the foundation of lasting client relationships and your firm’s reputation.
Let us help you reinforce your firm’s position as a trusted partner with our robust security solutions—get started today!
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