In an increasingly digital world, where sensitive financial data is stored and processed online, the threat of cyber-attacks is a pressing concern for businesses of all sizes. However, the risk of an attack increases with the size of the business – with 59% of medium businesses reporting attacks, and the number rising to 69% for large companies.
Payroll data is particularly enticing to cybercriminals due to the wealth of personal and financial information it contains. Therefore, it’s crucial for organisations to evaluate and strengthen their response mechanisms to potential payroll cyber-attacks. In this blog post, we will explore the importance of a robust response plan and the key elements of such a plan.
The need for a robust payroll system
Cybercriminals are becoming more sophisticated in their methods, making it easier for them to breach a company’s defences and gain access to payroll data. They may use tactics like phishing, ransomware, or social engineering to infiltrate your systems and compromise sensitive payroll information.
However, having a secure payroll system with contingency plans in place can also help you support your business through other problems such as:
- Natural and manmade disasters
- Power or network outages
- IT crashes or data losses
- Loss of access
The consequences of a successful attack – or another disaster – can be devastating, not only in terms of financial losses but also the erosion of trust and reputation. Legal issues can also follow payroll security problems, which can be time-consuming and costly to handle.
What makes a secure payroll system?
Preventing cyber attacks and protecting company data is essential, so having a well-defined response plan in place is vital. A robust plan can not only prevent attacks but also minimise damage and help your company recover if they take place. There are a few elements to consider when creating your plan that will help it be the most effective for your organisation:
Employee training & awareness
Your first line of defence against cyber-attacks is your employees. Ensuring that your staff are well-trained in recognising and reporting suspicious activities can significantly reduce the likelihood of a successful attack. The most common type of cyber attack affecting UK businesses is phishing – 83% of reported attacks. By implementing adequate training to your employees, you are empowering them with the knowledge they need to avoid being targeted by these attacks.
Incident Response Team
A cyber security incident response team (CSIRT) is made up of people who are tasked with handling the response to an incident – like a cyber attack. This can either be internal, made up of employees, or external. Members of this team can include IT staff, legal teams and PR specialists.
CSIRTs are an important component of any cyber security plan, maintaining awareness of threats and performing exercises to test your systems. They can also provide training to prepare other members of staff with knowledge that is specific to the needs of your organisation.
Regular security checks
Health and security checks are a common part of the HR system implementation process, but this shouldn’t stop once your system is in place. Phase 3 offers system health checks for all types of payroll systems – giving insight into security measures and compliance, as well as other factors that can affect the efficiency of your system.
Conduct your due diligence
You know how seriously your company takes security measures, so ensuring any business you partner with does the same – especially when sharing sensitive information – means you can continue working with the peace of mind that you are adhering to GDPR regulations.
Maintain detailed records of any cyber incidents, including the nature of the attack, its impact, and the actions taken to mitigate it. Documentation forms the cornerstone for effective responses that are tailored to your business and industry. This has a variety of positive implications for your payroll security systems in the future, such as:
- Understanding the nature of the attack
- Assessing the impact to fine-tune resource allocation
- Tracking response actions
- Meeting compliance and legal requirements
- Learning from the incident to prevent future attacks
- Building trust & transparency with employees and clients
With more and more of our business operations being digitised and home and hybrid working now the norm, cyber-attacks to your payroll system and the sensitive data it holds are more prevalent than ever. While preventing these attacks is essential, having a robust response plan is equally crucial. Businesses that prioritise this can significantly enhance their ability to thwart attacks and minimise the damage if one does occur.
Remember, cybersecurity is an ongoing process, and it’s critical to regularly review and update your response plan to stay ahead of the evolving threat landscape. By doing so, you can better protect your payroll data, your business, and the trust of your stakeholders.
If your business is looking to prioritise cybersecurity for your payroll system, Phase 3 has a variety of payroll services to support your business, from system health checks to our award-winning managed payroll service. To learn more about our services and to transform the way your business handles payroll security, contact our team for more information.