Payroll data can be a treasure trove for hackers. Just think how much personal information a hacker can get from payroll… social security numbers, bank accounts, check stubs and home addresses for starters. Your employees depend on you to keep their personal information safe. Here’s what you need to know about payroll security in 2020.
The Importance of Payroll Confidentiality
In just the last year, nearly 1,700 cyber breaches occurred in businesses around the U.S., leaking more than 170+ million records*. If your organization is hacked, there will be questions of liability.
The good news: it’s unlikely you will be held responsible for a third party hacking your payroll system.
The bad news: if the leak results in the stolen identify of an employee(s), they may spend months and tens of thousands of dollars rebuilding their credit, giving them grounds to file suit against your organization for the damages incurred by negligent data security.
A breach in payroll information can lead to more than just identity theft.
In fact, a minor leak can lead to fraud, hurt your brand image and result in the loss of employee trust, confidence and loyalty. If you work for a small to medium sized business (SMB) and you’re thinking, “hackers have bigger fish to catch”, think again. According to Forbes, payroll fraud occurs nearly twice as often in smaller businesses than large organizations. The reason behind this is quite simple, SMBs have fewer anti-fraud controls in place, making them an easier target.
Unfortunately, payroll fraud is more than a quick cash grab. The Association of Certified Fraud Examiners (ACFE) reports that payroll fraud schemes are the longest lasting form of fraud, with an average lifespan of 30 months. Without proper technologies in place, you could go years without ever detecting the ongoing theft of your data or money.
Who is Leaking Payroll Information?
What if the biggest threat to your organization wasn’t the hooded hacker operating in a foreign country but instead your own employees? In a recent study, Willies Towers Watson found that employees are responsible for 66% of cyber breaches (face, meet palm). While some breaches may be instigated by disgruntled or ex-workers, the overwhelming majority are the result of employee negligence who expose sensitive information through unapproved cloud and mobile apps or fall victim to targeted phishing attacks.
Basic Tips to Protect Payroll Data
Tip #1: Never leave your screen open to prying eyes when accessing employee information.
Don’t roll your eyes at this tip! You never know who may be looking over your shoulder. After all, it only takes a name and their social security number to steal a person’s identity. Consider investing in a privacy filter if you work in an extremely open environment.
Tip #2: When working in public places never use an unsecured Wi-Fi network.
The past decade has been kind to hackers who operate out of coffee shops and other public places. Believe it or not, if you’re connected to an unsecured network a hacker can use special equipment to capture your private information.
Tip #3: Always log out of email and other work accounts when not using your personal work device.
With today’s technological devices, keychains are becoming ever more popular. If you log into your work accounts from a peer’s computer there’s a decent chance their device automatically saved your username and password to its keychain. That means someone could log into your account and access confidential employee files.
These tips may help you avoid a breach in payroll data, but they won’t ensure your security. For that, you’ll need a HR and payroll partner like Paycor.
How Paycor Protects Your Payroll Data
Paycor is not only a leader in HR and payroll technology but we’re experts at keeping your payroll data and personal information confidential and secure.
Intrusion Detection and Intrusion Prevention System
Our network and servers are housed in enterprise-class data centers with the ability to detect patterns and signatures with a malicious purpose. Paycor’s infrastructure has continuous live backups that guarantee data reliability and consistency.
Industry Leading Encryption
Paycor ensures that your data storage is encrypted at every endpoint. With disk level encryption, we can prevent files from being transferred from stolen company devices like laptops or servers. Also, Paycor encrypts data at the file level to prevent online database breaches.
Advanced Threat Detection
Paycor’s Advanced Threat Detection feature stops “zero day” viruses that the cyber security community have yet to discovered. This feature uses behavioral analytics such as file access patterns to proactively isolate the infected endpoint before a data breach occurs.
Our dedicated security team performs vulnerability scans and penetration tests across our entire network. In addition, we rotate third party software companies to perform scans on our network twice per year to ensure best-in-class security.
Want to learn more about keeping your data secure? Connect with a Paycor representative to discuss how we protect you and your employees.