Marvin OnumonuCloudPay’s latest research found that data security and cyber risks were the main worry for businesses using payroll technology.
31% of midsize firms and 36% of enterprise firms saw this as their biggest concern, but only 37% of midsize businesses and 39% of enterprise firms said they were very confident in protecting payroll data from cyber threats.
The report found that disconnected systems and fragmented processes were making things worse, leaving gaps that cybercriminals could target.
The risks were even higher for firms working in several countries, making secure payroll solutions essential.
Tim Grieveson, chief security & risk officer at CloudPay, said: “Payroll data is among the most sensitive information a business holds, and yet our research shows that confidence in protecting it still needs some work.
“With cyber threats increasing in scale and sophistication, this gap represents more than a technical challenge, it’s a major compliance and reputational risk.
“The challenge for payroll in addressing this is two-fold. The sheer pace of sophistication in cyber attacks means that many are in a permanent state of playing catch-up, while budget restrictions are also creating a barrier.”
Grieveson added: “Businesses cannot afford to treat payroll security as an afterthought.
“The cost of a breach goes far beyond financial penalties; it impacts trust, employee wellbeing, and brand integrity.
“Organisations must prioritise investment in secure, integrated payroll technology and adopt proactive measures to mitigate risk.”
He said: “Payroll professionals are under immense pressure to deliver accuracy and compliance under tight deadlines.
“But without strong security foundations, the entire process is at risk.
“Our mission is to help businesses move from reactive firefighting to proactive protection, because in today’s environment, confidence in payroll security isn’t optional, it’s critical.”
He said: “I’d urge companies and payroll leaders alike to take immediate steps to strengthen data security, including investing in secure, integrated payroll platforms that reduce reliance on manual processes and fragmented systems and conduct regular audits and penetration testing to identify and address vulnerabilities before they are exploited.”
