As a CPA, you handle highly sensitive financial data—making you a prime target for cyber threats. Florida’s Information Protection Act (FIPA) – Fla. Stat. § 501.171 requires businesses, including CPA firms, to protect client data and take action if a breach occurs. Let’s break it down in simple terms.
1. What is FIPA?
FIPA is Florida’s data breach notification law. It ensures that businesses handling personal information (like Social Security numbers, bank details, and tax records) take proper security measures and notify clients if their data is compromised.
2. What is “Personal Information”?
Think of it as the keys to someone’s financial identity. Under FIPA, this includes:
✔ Social Security numbers
✔ Driver’s licenses or ID numbers
✔ Financial account numbers (with access credentials)
✔ Medical and health information
✔ Online credentials (username + password combinations)
If hackers steal this data, they can commit identity theft—opening credit lines or filing fraudulent tax returns in your clients’ names.
3. What Happens If There’s a Breach?
If client data is exposed, you must:
✅ Notify affected individuals within 30 days
✅ If 500+ clients are affected, notify the Florida Attorney General
✅ Take reasonable steps to protect the data before and after an incident
Example: Imagine a cybercriminal gains access to your accounting software and steals client tax returns. Under FIPA, you must inform your clients quickly, so they can take action to protect themselves.
4. How Can CPAs Stay Compliant?
🔹 Encrypt sensitive data (like tax returns and banking details)
🔹 Use multi-factor authentication to prevent unauthorized access
🔹 Have an incident response plan in case of a breach
🔹 Work with an IT security partner to ensure compliance
At IT Fusion, we help CPA firms safeguard client data, reduce cyber risks, and comply with Florida laws. Is your firm protected?
