Thursday, 1 April 2010

Today's important news for accountants

In a world where we are all connected over the Internet it has long been clear that traditional double-entry bookkeeping that you might learn from the Accounting and Bookkeeping College is no longer secure enough for online applications.

It seems that intelligent algorithms devised by Internet hackers can deduce the other side of most accounting entries which would normally appear single-sided in a typical web form. Putting these two pieces of double-entry  information together can give the hacker access to a small  part of a trader's accounts. Accountants and bookkeepers are increasingly concerned about the extent of that access and whether it might include more sensitive items such as bank and credit card accounts. Given the spread of financial information on the web there would seem to be no limit to where that accounting information could end up.

Today's answer to this alarming possibility is "triple-entry" bookkeeping. Accountants using this new method create an entirely random third entry in their books of account alongside the authentic double-entry transactions that are generated for each sale, purchase or other accounting movement. The random entry is effectively impossible for hackers to guess even using the strongest algorithms available today. The trader's books are, to all intents and purposes, scrambled in the process.

This technique is extremely new as it has to be to keep ahead of the Internet security 'arms race'. We will be watching very closely to see how rapidly it catches on.

No comments:

Post a comment