We only have ten fingers, so how can we keep plugging potential security leaks in business and personal information? See the Phone security article that speaks about the police’s right to search your phone. That doesn’t bother me, as a CPA, unless it is illegal to write business articles. What bothers me is first, we had the lost laptop scare, then the forgotten thumb-drive, now the lost phone. All of which can compromise proprietary and personal information.
But let me tell you how carelessness can make you lose your lunch. 25 years ago, I was assigned as the business manager to a top entertainment executive. He was a volitle man and told me why he left one of the big CPA firms for us. His story started with an IRS audit in which a CPA of the big accounting firm representing him. The night of the audit, the client received a phone call from a stranger saying that the stranger had found some tax files in a phone booth. As you might have guessed, the big firm CPA stopped to make a phone call (before cell phones) after meeting with the IRS, and left his client’s tax files in the phone booth.
“Slip of mind” stories are somewhat common in the business world, but the gravity of the situation depends on the quantity and access to the information.
Now here is a 21st century FICTIONAL story on how something like this could have serious consequences. Let’s say a person uses their Ipad to conduct business that deals with personal financial information. The Ipad, the apps, all are used in this person’s business. That day, he leaves the Ipadat a restaurant. The Ipad is never to be seen again. All of the information will be at risk of being compromised.
And what about the text messages? The police, and anyone else, can read your undeleted text messages that may contain financial information.
One thing that I do with my clients is use multiple platforms. For example, if I open up an online bank account, I e-mail them the link to the bank. I do not include the email or user number. Next, I text message the user and password without any indication what they are for. I ask them to erase everything they receive from me as an extra precaution.
Another strategy our CPA firm practices is to process information in a paperless environment. This way, there is no loss of paper. Your paperless files must be secure, though. In regards to your business, you may consider going the “paperless route.” It could save you a lot of problems.
So security breaches can be made by your CPA, attorney, doctor, bookkeeper, financial advisor. Be aware of that when you look to engage one of these professionals.