How Protected Is Your Payroll Data And Information?

How Protected Is Your Payroll Data And Information?

Protecting payroll data has always been important, but changes in technology have made it more so. While there are a number of online safety measures which have been developed, one of the greatest threats that employers face today are data breaches. However, the danger doesn’t end there.

Internal Threats

If employees are not properly trained, they may mishandle payroll data in a manner that allows it to be compromised. Even worse are untrustworthy employees that intentionally compromise payroll data for their personal gain. To avoid these problems employers must carefully screen the employees they hire, running background checks, and they must also establish data security policies that all members of the company are expected to follow.

Employers should also be on the lookout for employees that have personal problems such as addictions to gambling or controlled substances. The reason is because these employees are the most likely to intentionally sabotage the company for their personal gain. Such behavior isn’t restricted to rank and file employees, and may be carried out by managers or even executives.

As with government agencies, corporations should enact “security clearances” to limit the individuals who have access to certain types of data. Not only does this reduce the likelihood of a data breach, it makes it easier to track down the perpetrator, should a breach occur.

External Threats

External threats will come in two forms, and these are hackers and natural disasters such as floods, earthquakes, fire or hurricanes. It is no longer enough to just establish basic security measures. Hackers are relentless and are constantly coming up with new ways to defeat any countermeasures that companies may employ.

Business owners must always use encryption and they should keep up-to-date with the latest industry advances. Additionally, companies should scrutinize any outside vendors they use for security, and should never blindly trust them. They should determine exactly how their information will be protected, who will be given access to it, and what plans they have for disaster recovery. Vendors should also have procedures in place which prevent anyone from tampering with the information.

Disasters can come in many forms, and may be predictable or unpredictable. Clearly, the most dangerous disasters are unpredictable events such as earthquakes, terrorism, explosions or other problems. Every company must have measure set in place to respond to any of these variables. If possible, the company’s most sensitive data should be stored in underground, water proof locations which are resistant to fire and explosions. If a company lacks the resources to build such facilities from the ground up, they should outsource to a vendor that does.

Sensitive information can be secured in a number of different ways. It can be stored in off-site locations, or stored within a data cloud. Payroll departments must establish procedures to enact during emergencies to ensure the employees are paid and all their filing and tax needs are met. In truth, it is not a matter of if a disaster will occur, but when, what form it comes in, and whether or not your company is prepared for it.