Hacker Attacks on Email Systems and Tax Files

CAMICO's cyber-related claims experience reveals that hacker attacks on CPA firm email systems were the most frequent cause of cyber-losses for firms. These cyber-attacks accounted for almost two-thirds of cyber-related claims.

Many claims are also related to tax return preparation. A trend appears to involve waiting until just before a tax return deadline (e.g., late March and early April) to launch an attack that encrypts all of the firm's tax files. A demand is then made for ransom in exchange for access to the files. Ransom demands have ranged from about $1,000 to $20,000.

War Story #116

War Story #116: Business Management/Accounting Services, Wire Transfer Fraud


Tim Wahl, CPA, served an investment entity client for several years. Wahl assisted the entity's manager, Rob Green, with the preparation of the entity's tax returns, accounting for its investments, issuance of K1s, and coordinating Green’s requests for funds from investors when investments were offered.

Once investments were sold, Wahl worked with Green to allocate the proceeds and wire transfer the proceeds only after receiving Green’s verbal approval.

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