Unmasking the blind spot: why MSPs must address cyber security gaps in cloud accounting tools

IT Managed Service Providers (MSPs) have long been at the forefront of protecting their clients' digital assets and infrastructure. However, a significant blind spot has emerged in their cybersecurity strategies: the oversight of digital fraud and cyber risk monitoring within cloud accountancy tools like Xero and QuickBooks.

This oversight represents a major gap in comprehensive cybersecurity programmes and poses a substantial risk if left unaddressed.

The Overlooked Threat

Traditionally, MSPs have focused their cybersecurity efforts on more visible aspects of IT infrastructure, such as network security, endpoint protection, and data backup. While these areas are undoubtedly crucial, the financial and commercial heart of many businesses (their accounting systems) has often been neglected from a security perspective. Cloud-based accounting platforms have revolutionised how businesses manage their finances, offering convenience, accessibility, and real-time data. However, these same features that make them invaluable for businesses also make them attractive targets for cybercriminals, in additional to rich sources of data which can provide an early warning signal of broader security issues.

Why the Oversight?

Several factors contribute to MSPs overlooking this critical area:

1. Perceived Separation of Duties: Many MSPs view accounting systems as the domain of finance departments or external accountants, rather than part of their cybersecurity remit.
2. Trust in Platform Security: There's often an assumption that cloud accounting platforms have robust built-in security and anti-fraud measures, leading to a false sense of security.
3. Focus on Traditional Threats: MSPs typically concentrate on more 'conventional' cyber threats, such as malware and phishing, overlooking the subtler risks within financial systems.
4. Lack of Specialised Knowledge: Many IT professionals may not have the specific expertise to identify financial fraud patterns within accounting data.

The High Stakes of Inaction

The consequences of neglecting cybersecurity within cloud accounting tools can be severe. Financial data is among the most sensitive information a business possesses, and neglecting proper monitoring and analysis can lead to:

• Direct financial losses through fraud
• Reputational damage
• Regulatory non-compliance and potential fines (e.g. Failure to Prevent Fraud Offence 2025)
• Loss of client trust and business relationships

Bridging the Gap: Integrating Financial Systems into Cybersecurity Programmes

To address this critical oversight, MSPs must expand their cybersecurity scope to encompass cloud accounting platforms. This integration should include:

1. Comprehensive Risk Assessments: Conduct thorough evaluations of how cloud accounting tools interact with other systems and identify potential vulnerabilities.
2. Enhanced Monitoring: Implement advanced monitoring solutions that can detect unusual patterns or anomalies within financial data, potentially indicating fraud or compromise across the organisation.
3. Access Control Reviews: Regularly audit user access rights within accounting platforms, ensuring the principle of least privilege is maintained.
4. Integration with SIEM: Incorporate logs and alerts from accounting platforms into Security Information and Event Management (SIEM) systems for a holistic view of the security landscape.
5. Staff Training: Educate both IT and finance teams on the interconnected nature of cybersecurity and financial systems, fostering a culture of vigilance.

Detecting Broader Cyber Risks Through Financial Data

Monitoring cloud accounting tools isn't just about preventing direct financial fraud; it can also serve as an early warning system for wider cybersecurity issues. Consider the following scenarios:

Third-Party Data Breach Detection

A sophisticated cyber attack might not target your client directly but instead compromise one of their suppliers. This breach could manifest as a forged invoice received through legitimate channels. By implementing intelligent monitoring of incoming financial documents and comparing them against historical patterns, MSPs can help identify potential third-party compromises before they escalate into significant financial losses.

Network-Wide Digital Fraud Indicators

Unusual financial transactions or patterns within accounting data might indicate a broader network compromise. For instance, if an attacker gains access to a network and manipulates financial records to cover their tracks or facilitate fraudulent transactions, these anomalies could be the first sign of a more extensive breach.

Implementing Effective Monitoring: The Meysey Solution

To effectively monitor for these risks, MSPs should consider leveraging advanced tools like Meysey. Meysey offers a comprehensive solution that can fill the gap in cybersecurity programmes:

1. AI-Powered Fraud Detection: Meysey utilises artificial intelligence to perform automated fraud scanning using cloud accountancy data, detecting anomalies and unexpected activity.
2. Seamless Integration: With non-technical setup, Meysey plugs directly into cloud accounting software, enabling analysis from within existing tools.
3. Real-Time Alerts: The platform provides actionable insights and alerts, such payment anomalies, invoice forgery, supplier risks, and unusual filing activity.
4. Comprehensive Data Analysis: Meysey analyses thousands of data points within cloud accounting platforms to identify financial errors, risks, or deliberate wrongdoing.
5. Third-Party Validation: The platform extracts and analyses key data on potential payees to validate legitimacy and identify risks or anomaly.
6. Clear Reporting: Feedback and alerts are provided in clear language with guidance on recommended actions, making it easier for MSPs to communicate risks to their clients.

By incorporating a solution like Meysey into their cybersecurity offerings, MSPs can provide a more comprehensive protection package to their clients, addressing the critical gap in cloud accounting security.

Conclusion

The oversight of cloud accounting platforms in cybersecurity strategies represents a significant vulnerability for many businesses. As custodians of their clients' digital security, MSPs must evolve their approach to include these critical systems in their protective measures. By expanding their focus to encompass financial data security and leveraging it as a tool for broader cyber risk detection, MSPs can offer more comprehensive protection to their clients. Tools like Meysey provide the necessary capabilities to monitor, detect, and respond to threats within cloud accounting systems, filling a crucial gap in cybersecurity programmes. As cyber threats continue to evolve, so too must the strategies to combat them. Integrating cloud accounting tools into cybersecurity programmes is no longer optional—it's a necessity for any MSP committed to providing truly comprehensive protection in today's digital landscape.