Knoxville Accounting Firm Discloses Data Breach Affecting Over 1,000 Individuals
Brown, Jake & McDaniel, P.C., a Knoxville, Tennessee-based certified public accounting firm, reported a data breach involving unauthorized access to its network. The firm, which has served East Tennessee since 1980, provides tax planning, auditing, payroll, and financial consulting services.
The breach was disclosed to the South Carolina Attorney General on September 3, 2026, with 1,087 South Carolina residents identified as affected. The firm first detected unusual activity on January 20, 2026, prompting an investigation with the help of independent cybersecurity experts.
The investigation revealed that an unauthorized actor accessed the firm’s network between January 13 and January 21, 2026, potentially downloading sensitive files. A subsequent review confirmed that personal information may have been exposed during the incident.
In response, Brown, Jake & McDaniel is offering complimentary credit monitoring, credit reports, and credit score services through Cyberscout (a TransUnion company) to affected individuals. Those impacted must enroll within 90 days of receiving their notification letter.
Source: https://www.claimdepot.com/data-breach/brown-jake-mcdaniel-2026
Dermody, Burke & Brown, CPAs, LLC cybersecurity rating report: https://www.rankiteo.com/company/dermody-burke-&-brown-cpas-llc
"id": "DER1788546772",
"linkid": "dermody-burke-&-brown-cpas-llc",
"type": "Breach",
"date": "1/2026",
"severity": "85",
"impact": "4",
"explanation": "Attack with significant impact with customers data leaks"
{'affected_entities': [{'customers_affected': '1,087',
'industry': 'Financial Services',
'location': 'Knoxville, Tennessee, USA',
'name': 'Brown, Jake & McDaniel, P.C.',
'type': 'Accounting Firm'}],
'customer_advisories': 'Complimentary credit monitoring, credit reports, and '
'credit score services through Cyberscout (TransUnion) '
'for affected individuals (enrollment within 90 days '
'required).',
'data_breach': {'data_exfiltration': 'Potential download of sensitive files',
'number_of_records_exposed': '1,087',
'personally_identifiable_information': 'Yes',
'sensitivity_of_data': 'High',
'type_of_data_compromised': 'Personal information'},
'date_detected': '2026-01-20',
'date_publicly_disclosed': '2026-09-03',
'description': 'Brown, Jake & McDaniel, P.C., a Knoxville, Tennessee-based '
'certified public accounting firm, reported a data breach '
'involving unauthorized access to its network. The breach '
'potentially exposed sensitive files, including personal '
'information of 1,087 South Carolina residents.',
'impact': {'data_compromised': 'Personal information',
'identity_theft_risk': 'High',
'systems_affected': 'Network'},
'investigation_status': 'Completed',
'references': [{'source': 'South Carolina Attorney General'}],
'regulatory_compliance': {'regulatory_notifications': 'Disclosed to South '
'Carolina Attorney '
'General'},
'response': {'communication_strategy': 'Notification letters to affected '
'individuals',
'third_party_assistance': 'Independent cybersecurity experts'},
'title': 'Knoxville Accounting Firm Data Breach Affecting Over 1,000 '
'Individuals',
'type': 'Data Breach'}