Cybersecurity Risk Considerations in Financial Statements

Financial Savings

“ The safe way to double your money is to fold it over once and put it in your pocket”  – Kin Hubbard

This is a clever quote that talks about the importance of keeping money safe. People can keep their money safe in many ways. Some prefer to invest it in a bank while others have cash under their bed. There are even people that keep their money “safe” by simply spending it. You can’t lose what isn’t there in the first place.

Jokes aside, being financially free is quite a privilege that most people don’t get to enjoy. The road to being financially independent and free is riddled with traps and scams from beginning to end. 

One of the most common methods to achieving this privilege is constant monitoring and financial reporting.

A financial report lets you keep track of your money and the different assets you have. This gives you a good grasp of where your money is going. 

Whether you monitor your money through a modern computer program or a scuffed notebook, keeping financial statements safe is quite the responsibility.

Cybersecurity in Finance

Security is important no matter what field is being discussed; this is especially true when it comes to monetary matters. Most people have probably feared losing all of their savings to a hacker. 

One of the common threats to your security is a cyber breach. This can happen when hackers, scammers, or anyone with malicious intent, gets past your cybersecurity. 

Cyber attacks can come in many forms, all with their unique detrimental effects.

Before we discuss the traps you should be on the lookout for, we’ll mention one of the best upgrades to your security. This is so you don’t end up panicking when you read all the possible attacks on your wallet.

Professional Help

There is no better security than a professional team. This is because experience combined with skills is equal to you and your money being safe. There are hundreds of companies that offer protection as modern bodyguards would.

Whether you’re looking out for your company or your family, having a professional by your side will keep everyone safe. An example of a professional keeping people safe would be OT security ventures. 

OT ventures provide industrial control systems to protect companies and businesses from cyber-attacks. This is achieved by having on-site sensors that watch the entire process of production. 

These sensors watch out for indicators of corruption or failure. If such an indicator arises then the ICS shuts down the entire process to prevent any damage.

Having someone keep an eye on your money will help it to stay safe, they will probably be able to pay more attention to it. Having an eye on your assets, not just any eye but a trained eye that has sworn to keep your money, assets, and company safe.

Cybersecurity Risks in Financial Statements

Financial statements are records that mention your business, family, or even personal expenses. They reveal your activity in terms of money and offer all kinds of information. 

You will probably end up producing many of these statements for various purposes like tax deductions or maybe company reimbursements. Looking at your financial statements will also show you where you spend your money and how to save it.

As mentioned, the world is a dangerous place with all kinds of threats popping up from everywhere. To prevent you from being scammed, hacked, or even straight-up robbed; here are some of the risks that you should consider when it comes to handling financial statements.

1. Personal Information Leaks

Financial statements are records and with records comes information. Today, information is very valuable, specifically personal information. This can range from your name, address, personal contacts, or even your phone number.

In the wrong hands, your personal information can leave you vulnerable to identity theft, spam, and it can even put your peers at risk. Even a naughty child can create problems with your address, such as ordering something online and placing your address. 

2. Identity Theft

This was already mentioned but what is identity theft? This is when people pretend to be another person and exploit the resources, access, and information that the victim has. 

This can lead to anything from a random fast food delivery to your whole bank account being transferred to someone else’s possession.

Identity theft is often discussed with stolen credit cards and incredibly expensive purchases. Other than your funds, this attack leaves your business and family vulnerable.

Gaining your identity also leads to them gaining access to everything you have. An example might be restricted access to a company’s records like their client list or business secrets. Maybe, your identity gives them access to your family bank account or assets left in your name.

Identity theft is not a joke, and it should be taken seriously and carefully.

3. Frozen Accounts

Cyber attacks aren’t just about stealing money or data. Sometimes it’s all about causing trouble for a victim. Whether it be a competitor or someone with a vengeance. If your financial records fall into the wrong hands you can end up with a whole financial car wreck.

If you can react accordingly and stop these “wrong hands” from stealing or using your money, there is still the mess left behind. Frozen accounts are wallets that have money in them but they can’t be moved or used, hence the term frozen. 

You may want to learn more about frozen accounts and how to prevent or handle them.

Sure, it is a great feeling when hackers can’t use your money, but now you can’t either. For whatever reasons these cyber terrorists had, you are left with an account that has frozen money. It creates an entire inconvenience that may take months to resolve.

Key Takeaways

This is just the tip of the iceberg when it comes to cybersecurity in terms of financial records. Money may not be able to buy happiness but it is an incredibly valuable resource that needs security. Protection from all kinds of attacks that may leave you with no money or even useless money. 

Reacting to a drastic situation such as hacking or information leaks is an important life skill. At the same time, however, preparing for such situations is just as important. Having protocols or even a professional back you up beforehand will go a long way.

Make sure that you aren’t spending all of your time daydreaming about how to spend or earn money. Spend a little bit of time contemplating how to keep that money safe.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.