Why client trust is your firm’s most valuable asset in the age of cyberattacks

Guest editorial by Petar Iliev

Clients might not always say it, but when they share their financial data with your firm, they’re placing their absolute confidence in you to protect that information. And in the accounting industry, you don’t often get second chances at trust.

Every year, this trust is tested in new ways. What used to feel like a distant IT problem – cybersecurity – is now a daily business risk, with real consequences for client relationships, firm reputation, and long-term growth.

The alarming reality: Accounting firms are a prime target

In 2024, the Identity Theft Resource Centre reported that financial services have replaced healthcare as the most compromised industry, with 737 compromises resulting in 48 million victim notices.

The most common cyber threats faced by modern accounting firms often start with something as simple as a suspicious email requesting sensitive client information, a fake invoice attachment that installs malicious software, or a message pretending to be a trusted vendor or team member asking for a quick payment.

While firms of all sizes are at risk, mid-sized practices – those with 10+ team members – are prime targets, holding valuable client information but lacking a sophisticated security system to protect it.

The cost of a cyberattack goes beyond monetary loss

Yes, the financial hit of a data breach is massive. As of 2024, according to Statista, the global average cost of a data breach is USD 4.88 million. In the United States, the average cost is USD 9.36 million.

Beyond monetary losses, however, the less-discussed cost is client trust, especially as today’s clients increasingly expect more from their accountants.

According to 1,000 surveyed clients in TaxDome’s report, Client Satisfaction: What Taxpayers Expect From Their Accountants:

76% of clients said their accountant should have used a secure web portal, but only 44% said their accountant did.
76% want their accountant to provide proof that their data is kept securely.
77% agree that any digital or electronic means of information-sharing with their accountant should include 2-factor authentication.

Firms that fail to meet heightened client expectations around security don’t just risk losing existing clients. They also risk future business through the reputational damage a cyberattack can inflict.

This makes cybersecurity a non-negotiable cornerstone of both client loyalty and business longevity.

Build unshakeable client trust, secure your firm’s future

As your firm grows, complexity naturally increases, creating hidden security gaps in common operational areas. Addressing these vulnerabilities requires a multi-faceted, airtight approach.

Find out how to bolster your firm’s defences, achieve unparalleled client trust, and identify security gaps with an integrated quiz in TaxDome’s latest industry report, Client trust in the age of cyber attacks: The hidden security gaps in accounting firms (and how to close them).

As Chief Revenue Officer at TaxDome, Petar Iliev leads with a clear focus: helping accounting firms grow by creating client experiences that drive loyalty and long-term value. Under his leadership, TaxDome has become the go-to platform for over 10,000 firms — not just for workflow efficiency, but for empowering firms to deliver the kind of client experience that sets them apart.