How to Secure Your Xero Account: Protecting Your Financial Data

Keeping financial data secure is a concern we all share. No one wants their sensitive information falling into the wrong hands.

The good news is that Xero offers robust security measures to protect user data. By setting up features like multi-factor authentication, you can dramatically reduce the risk of unauthorized access.

In this post, we'll explore all the ways Xero safeguards your financial data. You'll learn about Xero's secure infrastructure, backup systems, and how to configure extra authentication protocols. We'll also provide a step-by-step guide to activating multi-factor authentication to further fortify your account security.

Introduction to Xero Account Security

Securing your Xero account is critical for protecting sensitive financial data stored in the cloud. As cyber threats continue to evolve, robust security measures like multi-factor authentication (MFA) have become mandatory for many online services.

Xero provides enterprise-grade security features to help safeguard your data. This includes mandatory MFA for all users, endpoint encryption, automated security monitoring, and more.

In this article, we'll walk through key things every Xero user should know about strengthening account security:

Why MFA is now required for all Xero accounts - We'll explain Xero's rationale for making 2-step verification compulsory globally and how it better protects your financial information.
Overview of MFA options available - Xero supports multiple MFA apps like Google Authenticator, Authy, and Xero Verify. We'll compare the pros and cons of each option.
Step-by-step guide to setting up MFA - Whether you choose Google Authenticator or Xero Verify, we'll show you how to easily enable multi-factor authentication.
Troubleshooting tips - Already using MFA but having issues? We'll provide solutions for common problems like using MFA on a new mobile device.
Additional Xero security features - Beyond MFA, we'll highlight other key capabilities like anomaly detection that provide an added layer of protection.

Securing your financial data is non-negotiable in today's threat landscape. Follow along as we break down critical account security measures every Xero user should implement.

How do I keep information secure in Xero?

Xero's multi-factor authentication (MFA) adds an extra layer of security to your account by requiring users to verify their identity in two different ways when logging in. This prevents unauthorized access even if someone knows your password.

Here are the key things to know about setting up MFA with Xero:

Why Should I Use MFA with Xero?

Enhanced security - With MFA enabled, gaining access requires both your password AND an additional step like entering a code from an authenticator app or receiving a verification code via text. This means that even if your password is compromised, your data stays protected.
Peace of mind - MFA gives you confidence that your financial information is more secure from threats like phishing attempts, password stealing malware, and brute force login attacks.
Meets compliance needs - Many regulations like GDPR require multi-factor authentication to protect sensitive customer data. Using MFA may be mandatory for your business.

How to Set Up MFA in Xero

Setting up MFA is simple and involves just a few steps:

Log into your Xero account and go to Settings.
Under Security, click "Manage two-step authentication".
Follow the prompts to enable MFA using Xero Verify or an authenticator app like Google Authenticator.
Enter the 6-digit verification code provided by the app when prompted during login.

That's all there is to it! With MFA enabled, each login will require both your password and the rotating 6-digit code from your chosen authenticator app or method.

For step-by-step guidance, see Xero's support article on setting up MFA. Reach out to their helpdesk if you have any issues getting it configured.

Protecting your financial data is essential. Follow Xero's security best practices like enabling MFA to keep your cloud accounting safe from unauthorized access.

Is Xero data secure?

Xero takes data security very seriously and complies with the Payment Card Industry Data Security Standard (PCI DSS) to protect customer financial information.

Here are some key things to know about Xero's security:

Xero is a level 2 merchant for PCI DSS and outsources credit card processing to PCI DSS-compliant level 1 service providers. This ensures financial data is handled securely.
Xero is compliant with the latest PCI DSS v3 standard for financial data security.
All data transmitted between Xero products and services is encrypted using TLS. This prevents unauthorized access to sensitive information.
Xero offers two-factor authentication, mandatory for all users globally, as an extra layer of protection on top of passwords. This makes it much harder for hackers to access accounts.
Xero continually monitors for suspicious activity and has dedicated teams to respond to security threats and issues.

So in summary, Xero takes a multi-layered approach to security and leverages industry best practices like PCI DSS compliance, encryption, and two-factor authentication to keep customer data safe. Businesses can feel confident entrusting their financial data to Xero's cloud accounting platform.

Where does Xero store its data?

Xero stores customer data on secure servers hosted by Amazon Web Services (AWS) in the United States. As a top-tier cloud infrastructure provider, AWS offers state-of-the-art physical and virtual security to protect sensitive financial information.

Some key facts about Xero's data storage:

Servers Located in the US: Xero uses AWS data centers located in North Virginia, Ohio, and Oregon to host customer data. These facilities meet rigorous compliance standards.
Encrypted Data Transmission: Data is encrypted in transit and at rest using industry-standard protocols like TLS and AES-256. This prevents unauthorized access.
Access Controls: Strict access controls limit data access to authorized personnel only. Multi-factor authentication adds an extra layer of protection.
Backups and Availability: AWS utilizes resilient infrastructure with automatic backups, failover, and disaster recovery to minimize downtime risks.
Routine Security Testing: Xero partners with independent auditors to regularly test and validate security controls, infrastructure, and processes.

By leveraging AWS, Xero can focus on delivering exceptional accounting software while AWS manages physical infrastructure, security protocols, and compliance policies. Customers benefit from enterprise-grade security without added overhead costs.

Overall, Xero has made cloud security central to its platform by partnering with a premier data hosting provider in AWS and making systematic investments to safeguard customer information.

Does Xero backup my data?

Xero utilizes cloud technology to securely store and backup your financial data. This means that your data is automatically protected and available whenever you access Xero.

Specifically, Xero uses the following methods to keep your data safe:

Data encryption: All data transmitted and stored by Xero is encrypted using bank-level security protocols. This prevents unauthorized access.
Redundant data centers: Xero stores data across multiple secure facilities around the world. If one facility goes down, your data remains available from the others.
Daily backups: Xero performs daily backups of all customer data to prevent data loss. Backups are stored securely for years.
Disaster recovery: Comprehensive plans are in place to quickly recover data and restore services in case of disasters like fires, floods, or earthquakes.

So in summary, Xero fully manages and automates the backup of your financial data. You don't need to manually create your own backups. But for extra protection, some businesses choose to download reports or export data from Xero to store locally.

To learn more about Xero's security, visit the "Trust and security" page on their website. You can also check the Xero Central security noticeboard for the latest updates.

The Importance of Xero Data Security

Protecting financial data is critical for any business using Xero's cloud accounting platform. Inadequate security puts companies at risk of data breaches, financial fraud, and loss of sensitive information.

Understanding Data Protection at Xero

Xero utilizes state-of-the-art security measures to safeguard user data and maintain privacy. This includes:

Encryption of data in transit and at rest
Rigorous access controls
Automated monitoring to detect threats
Regular security updates and patches

By leveraging these security best practices, Xero aims to provide an accounting platform businesses can trust to store their vital financial data.

Security Articles on Xero Central

Xero Central contains a wealth of official security articles and resources:

Step-by-step guides on setting up multi-factor authentication
Explanations of Xero's approach to data protection
Notices regarding new security features and mandatory requirements

Staying updated via Xero Central ensures your accounting practices align with the latest data security standards.

Monitoring the Security Noticeboard

The Security Noticeboard page provides real-time notices of emerging threats, software updates to address vulnerabilities, and new security initiatives at Xero. Monitoring this page enables proactive protection by allowing users to:

Swiftly respond to critical threats like phishing campaigns or data breaches
Prepare for upcoming changes like mandatory multi-factor authentication
Leverage new security capabilities as soon as they become available

Overall, prioritizing Xero data security is imperative for safeguarding sensitive financial records and maintaining compliance. Leveraging Xero's security resources and features is essential for any business utilizing the platform.

Exploring Multi-Factor Authentication for Xero Security

Multi-factor authentication (MFA) is an important security measure that requires users to provide two or more verification factors when accessing an account, preventing unauthorized access. For Xero users, enabling MFA adds an extra layer of protection to safeguard sensitive financial data stored in the cloud accounting platform.

How MFA Works to Secure Your Account

MFA typically combines two of the following verification methods:

Something you know (like a password or PIN)
Something you have (like a mobile device or security key)
Something you are (like a fingerprint or face scan)

So in addition to entering your Xero password, you would also need to provide a one-time code from an authenticator app or biometric login on your mobile device. This ensures that even if your password is compromised, an attacker still cannot access your account without the second factor.

Enabling MFA is one of the most effective ways to prevent phishing attacks, password stealing malware, and other cyber threats targeting your financial data. According to a recent Xero security noticeboard post, over 90% of cyber attacks can be prevented simply by using MFA.

Why We're Mandating Multi-Factor Authentication Globally

In line with data protection regulations and industry best practices, Xero has mandated MFA globally for all users. Though an extra step, activating MFA is crucial to safeguard your private accounting information stored in the cloud.

Key reasons Xero is enforcing mandatory MFA include:

Prevent unauthorized access: MFA blocks over 90% of hacking related breaches by requiring an additional login factor beyond just a password. This secures your financial data from cybercriminals.
Industry compliance: Regulations like GDPR make MFA a legal requirement for financial data security. Enforcing MFA helps Xero comply with data protection laws.
Best practice adoption: Leading cloud software providers are mandating MFA for enhanced security. By conforming to industry norms, Xero assures customers their data is secured to the highest standards.
User awareness: Drawing attention to MFA underlines its critical importance in data security. Educating users improves vigilance and prevention of cyber threats.

With mandatory MFA, Xero is taking a proactive approach to safeguarding user data. The global policy ensures that all accounting information stored on the platform has an essential additional layer of protection.

Setting Up Multi-Factor Authentication on Xero

Multi-factor authentication (MFA) is an essential security measure for protecting sensitive data in online accounts. For Xero users managing financial information, setting up MFA should be a top priority.

This guide will walk through the necessary steps to configure MFA for your Xero account using Xero Verify or Authy. Enabling an extra layer of verification ensures that only you can access your account - even if your password is compromised.

How to Set Up Xero Verify for MFA

Xero Verify is Xero's official mobile app for multi-factor authentication. It's the recommended approach for most users. Here is how to set it up:

Download and install the Xero Verify app on your mobile device (available for iOS and Android).
In Xero, go to Settings > Security.
Under Multi-factor authentication, click Set up next to Xero Verify.
Open the Xero Verify app and scan the QR code shown in Xero. This links the app to your Xero account.
Enter the 6-digit verification code displayed in the app into Xero when prompted.

Once activated, you'll need to open Xero Verify and obtain a verification code each time you log into your Xero account. This adds an extra layer of security on top of your password.

Switching from Google Authenticator to Xero Verify

If you already use Google Authenticator for MFA with Xero, you can easily switch to the official Xero Verify app:

Download and set up Xero Verify on your device (see previous steps).
In Xero, go to Settings > Security.
Under Multi-factor authentication, click Switch apps next to Xero Verify.
Open Xero Verify and scan the QR code shown in Xero to link it to your account.
Enter the 6-digit verification code from Xero Verify to validate the linked app.

After completing these steps, Xero Verify will replace Google Authenticator as your go-to MFA solution. The next time you log into Xero, it will specifically request a code from Xero Verify.

Configuring Authy for Desktop MFA

For desktop users who don't have access to a mobile device, Authy provides MFA capabilities on PCs:

Visit the Authy website and create an account. Install the Authy desktop app.
In Xero, go to Settings > Security.
Under Multi-factor authentication, click Set up next to Authy.
Scan the QR code shown in Xero using the Authy desktop app.
Enter the 6-digit verification code displayed in Authy into Xero to validate.

Once set up, retrieve verification codes from the Authy desktop app whenever logging into Xero or approving sensitive actions. This extends MFA security to non-mobile environments.

Enabling multi-factor authentication is crucial for securing financial data and accounts. By configuring Xero Verify or Authy for MFA, users can protect their sensitive information from unauthorized access.

Daily Use of Multi-Factor Authentication with Xero

Multi-factor authentication (MFA) adds an extra layer of security when accessing your Xero account. By requiring an additional form of verification beyond just a password, MFA protects your financial data from unauthorized access. Using MFA with Xero is straightforward and soon becomes second nature.

Accessing Xero with MFA: A Step-by-Step Guide

When logging into your Xero account with MFA enabled, you'll go through these simple steps:

Enter your Xero username and password as usual on the login screen.
You'll then be prompted to verify your identity through a second factor. This could be approving a notification on your mobile authentication app, entering a code from an SMS text message or phone call, using a hardware token, or biometrics like fingerprint or face recognition.
After successful verification, you'll be logged into your Xero account as normal.

The extra verification takes just seconds and allows secure access to your financial data. Over time, entering codes or approving login requests on your mobile device becomes second nature, part of your normal login routine.

Using Multi-Factor Authentication on a New Device

If accessing your Xero account from a new device for the first time with MFA enabled, you'll need to set up your preferred verification method on that device:

Mobile app authentication (recommended): Download the Xero Verify app or other authentication app like Google Authenticator and scan the QR code provided to sync your account. You can then generate verification codes even when offline.
SMS/phone call verification: Enter your mobile number to receive text messages or automated phone calls with codes.
Hardware token: Sync your hardware token by entering the generated code. Future logins will require pressing the token's button to view the login code.

Once set up, you can securely access Xero from that device going forward. The process only takes a minute or two.

Enabling MFA secures your financial data from unauthorized access attempts while having minimal impact on your daily Xero login routine. The extra few seconds provides peace of mind that your data remains protected.

Troubleshooting Multi-Factor Authentication on Xero

Resolving Sync and Code Generation Issues

If you are having issues with your multi-factor authentication (MFA) app not syncing or generating codes correctly, here are some troubleshooting steps to try:

Make sure your device's date and time are set correctly. Incorrect device time can prevent proper code generation.
Check that your device has an internet connection. MFA apps require connectivity to sync with Xero's servers. Try connecting to WiFi or mobile data.
Reinstall or update your MFA app. An outdated version may not work properly. Download the latest release.
Delete and re-add the MFA credential in your Xero account. This forces a fresh sync with the app.
As a last resort, reset the MFA device association for your Xero account. You will need to verify your identity before removing the credential.

If none of these help resolve the MFA issues, contact Xero support for further assistance in diagnosing and fixing the problem.

Recovering Access After MFA Device Loss

If you lose access to your MFA-registered mobile device, you can regain access to your Xero account by:

Using your recovery code, which was provided when you first set up MFA. Enter this on Xero's login page.
Verifying your identity with Xero's support team. They will confirm your ownership of the account through validation questions and re-enable login access.
Adding a new MFA app association. You can set up authentication with another device after identity verification.

To avoid getting locked out in the future, be sure to save copies of your recovery code in secure locations. You can also set up multiple trusted MFA devices on your account as a backup.

Recovering a lost MFA credential while maintaining security can be complicated. Don't hesitate to reach out to Xero's knowledgeable support team if you have any issues regaining entry to your account.

Enhancing Your Xero Account's Overall Security

Beyond MFA, there are additional practices and settings that can help secure your Xero account.

Implementing Strong Password Policies

Using strong passwords in conjunction with MFA provides an extra layer of protection for your Xero account. Here are some tips for creating secure passwords:

Use at least 8 characters, combining upper and lowercase letters, numbers, and symbols
Avoid using personal information, dictionary words, or common passwords
Enable password expiration policies to force periodic updates
Consider using a password manager to generate and store unique passwords

By implementing robust password policies across your organization, you make it much harder for potential attackers to guess login credentials and access accounts.

Controlling Access with User Permissions

Properly configuring user permissions is another way to enhance Xero account security. Steps you can take include:

Assign the minimum permissions needed for each user's role
Restrict admin privileges only to those who absolutely require them
Remove ex-employees' access immediately upon departure
Review all users and their permission levels regularly

Setting up restrictions ensures users can only access and modify appropriate data. This minimizes the potential damage from compromised credentials or insider risks.

In summary, using MFA along with strong passwords and strict access controls provides a layered defense that significantly improves Xero account security. Continue monitoring best practices and adjusting policies as needed.

Staying Informed About Xero Security Updates

Keeping up-to-date with the latest security features and updates from Xero is critical for protecting your financial data. Here are some tips for staying informed:

Finding Out More About Security at Xero

Xero provides several resources to learn about their security offerings:

Check the Xero Central security noticeboard for the latest news, tips, and announcements related to security. This covers updates on multi-factor authentication, data encryption, security best practices, and more.
Browse Xero's security articles for in-depth information on topics like setting up two-factor authentication, securing your Xero account, and troubleshooting login issues.
Follow official Xero social media accounts like Xero on Facebook or Xero on Twitter for security notices and reminders as they are released.

Staying up-to-date on the latest Xero security features allows you to fully leverage available protections for your financial data.

Reporting Security Concerns

If you discover a security vulnerability in Xero or have another sensitive security concern, it's important to report it properly so that it can be addressed.

To report potential Xero security issues:

Send a detailed report to security@xero.com. Outline the specifics of the vulnerability without publicly disclosing it elsewhere.
If you discover a data breach, contact the Xero support team immediately for assistance.
Encourage employees to speak up if they notice odd account activity that could signal a breach. Document relevant details to share with Xero security staff.

By responsibly disclosing security issues, you help the Xero community strengthen protections and respond quickly in the event of a confirmed breach. Handling vulnerabilities discretely prevents exploitation while solutions are developed.

Staying vigilant and speaking up when you spot security concerns contributes to everyone's wellbeing in the Xero ecosystem. Report issues properly so they can be resolved!

Conclusion: Securing Your Financial Future with Xero

Protecting sensitive financial data should be a top priority for any business using online accounting software like Xero. By taking a few simple steps to enable multi-factor authentication and follow security best practices, you can dramatically reduce the risk of unauthorized access to your Xero account.

Here is a concise summary of the key takeaways:

Enable two-step verification using Xero Verify or another authenticator app for an added layer of account security. This requires entering a code from your mobile device when logging in.
Use strong, unique passwords and change them periodically to prevent guessing or brute force attacks. Consider using a password manager.
Be wary of phishing attempts and never enter your login credentials on unfamiliar sites.
Keep software up-to-date and maintain endpoint protection with antivirus to reduce vulnerability exploits.
Backup data regularly in case recovery is needed after a security incident.

Following these best practices for using Xero securely enables you to harness the benefits of cloud accounting with confidence. Your financial data and accounting integrity rely on making system security a priority throughout your organization. We hope this article has helped underscore the importance of protecting your Xero account and given you actionable steps to lock down access. Please contact Xero support if you have any other questions!

How to Secure Your Xero Account: Protecting Your Financial Data

Introduction to Xero Account Security