Cybersecurity in a Cloud-Driven World: Protecting Client Data in the Modern Accounting Firm 

97% of UK accountants mostly or totally trust the cloud for storing their data, yet 52% still cite cyberattacks as their biggest concern. This apparent contradiction reflects the reality facing modern accounting firms: cloud adoption offers undeniable benefits, yet cybersecurity remains a pressing challenge that requires careful attention. 

The scale of the cybersecurity challenge is substantial. With 7.78 million cyber crimes recorded in 2024 and 50% of UK businesses experiencing a breach, the threat landscape affects organisations across all sectors. 

Ransomware, phishing, and insider risks remain prominent threats, especially as firms grow increasingly reliant on cloud-based workflows. Attack sophistication has evolved considerably, with organised criminal gangs operating across multiple jurisdictions in structured, multi-layered operations that target SMEs as well as large firms. 

Understanding why cloud adoption changes the game requires examining both opportunities and challenges. Firms that approach this transition with proper knowledge and preparation can respond with confidence and resilience. 

Cyber threats are evolving – is your cloud security keeping up? 

Today’s threat landscape presents accountancy firms with rising volumes of ransomware and business email compromise attacks. Financial impact has become severe. The average ransomware payment demand in the UK now reaches £3.94 million. Yet 83% of businesses have not conducted a cyber vulnerability audit, leaving many organisations unaware of their gaps. 

Attackers today use sophisticated social engineering techniques that exploit publicly available information to create convincing phishing attempts. Human error remains a critical weak point in most frameworks. Research shows that more than 90% of breaches are caused by employee oversight, highlighting the importance of addressing both technical and human factors in defence strategies. 

What makes organisations vulnerable? Common issues include misconfigured multi-factor authentication and admin permissions, overly permissive user roles, and lack of alert systems for suspicious activity. These problems often stem from treating cybersecurity as an IT problem rather than a business-wide responsibility. 

Behind these attacks are organised criminal gangs operating out of China, Russia, Nigeria, and North Korea. Groups such as these function like businesses, with different specialists handling credential theft, access brokering and ransomware deployment. 

The shared responsibility of cloud security 

A fundamental principle underpins cloud computing: it operates on a shared responsibility model. While providers secure the infrastructure, firms remain accountable for user permissions, configuration and data access controls. 

Cloud adoption can introduce new vulnerabilities that require active management. These include expanded attack surfaces through remote access and mobile devices, third-party supply chain risks, and setup flaws alongside poor password hygiene. 

However, the platform delivers genuine benefits when properly implemented. Centralised controls, unified monitoring, and rapid deployment of updates make it easier to maintain robust defences against evolving threats such as phishing and ransomware. Advanced encryption and access management capabilities, combined with automated backups and disaster recovery, can significantly strengthen a firm’s posture. 

Cloud represents a different type of risk that must be actively managed through proper configuration, ongoing monitoring and staff education.  

A secure-by-design mindset: from compliance to resilience 

Embedding protection into every layer of the cloud environment enables firms to build genuine resilience against emerging threats, positioning them for long-term success. 

Effective architecture requires layered defence that segments access to data, applications and infrastructure. This approach limits potential damage from any single point of compromise and provides multiple opportunities to detect and respond to threats. 

Continuous monitoring and AI-driven anomaly detection represent essential components of modern strategies. These technologies identify unusual patterns that might indicate a breach, enabling rapid response before significant damage occurs. 

End-to-end encryption and biometric measures provide additional protection for sensitive financial data. These technologies make it significantly more difficult for attackers to access or misuse client information, even if they manage to breach other layers. 

Staff training and awareness programs tackle the human element, which is often the weakest link in security. Investing in education and awareness leads to measurable improvements in defence. 

Governance starts at the top 

A sobering statistic reveals that 78% of firms have no formal cyber incident response plan. This gap in preparation becomes particularly concerning when considering the UK Government’s Cyber Governance Code of Practice, which places responsibility squarely on senior leaders. 

Effective governance requires formal risk assessments, which are often overlooked when protection is treated solely as an IT responsibility. Senior management must define clear strategy and roles, establishing accountability and ensuring adequate resources are allocated to initiatives. 

Assurance and oversight represent critical components of good governance, ideally involving third-party validation (such as ISO/IEC 27001) to ensure controls are properly implemented and maintained. Internal audit teams have a growing role in stress-testing controls and ensuring stakeholder alignment. 

The governance framework must address both technical and business aspects. This includes understanding regulatory requirements, establishing clear communication channels for incidents, and ensuring that considerations are integrated into business decision-making processes. 

Cloud security as a competitive advantage 

Client expectations around data protection continue to evolve. Firms that can demonstrate robust practices will win trust and retain loyalty in an increasingly competitive marketplace. 

Transparency plays a key role in building client confidence. This includes publicising accreditations like ISO 27001, sharing protocols where appropriate, and responding swiftly and transparently to any incidents. A firm’s protective posture has become part of its brand equity. Strong practices signal professionalism and reliability, while breaches can cause lasting damage to reputation and client relationships. Effective measures enable firms to become future-ready, trusted partners to clients while meeting regulatory requirements. 

Investment in integrated measures often enables firms to offer enhanced services to their clients. The expertise gained in protecting their own systems can translate into valuable advisory services for clients facing similar challenges. 

Becoming a trusted partner in the digital age 

Cloud adoption creates new opportunities for accounting firms, but it also demands a proactive approach to protection. The shared responsibility model means firms cannot simply rely on their providers to handle all concerns. Industry experts emphasise that defence represents a foundational business requirement rather than an optional extra, with firms advised to conduct thorough due diligence rather than waiting for an incident to prompt action. 

The practices that thrive in the cloud-driven future will be those that view protection as an enabler of business growth rather than merely a compliance requirement. By taking action now to build comprehensive frameworks, accounting firms can position themselves as trusted partners in an increasingly digital economy while reducing the risk of costly incidents that could damage both reputation and client relationships. 

Meet the Wolters Kluwer team at Accountex Summit Manchester on stand H13, taking place at Manchester Central on 23 September 2025.  

For further information, please visit www.accountexmanchester.com.

Book your free ticket here.

The post Cybersecurity in a Cloud-Driven World: Protecting Client Data in the Modern Accounting Firm  appeared first on Accounting Insight News.