TECHNOLOGY
Automated risk assessments Streamlining the evaluation of payroll vendors. Continuous monitoring Providing real-time updates on vendor security postures. Compliance management Helping ensure adherence to relevant regulatory requirements. Centralised vendor database Storing due diligence documents, contracts and assessments in one secure location. Platforms like C2 provide a way for organisations to automate the assessment, monitoring and remediation of supplier risk. When Harry met Sally: a phishing tale Consider the story of Harry, a new Payroll Administrator, and Sally, a cyber threat actor. Sally gathers intelligence on corporate targets, uses expert phishing and impersonation to steal login credentials, and escalates privileges to create a fake vendor profile within the payroll. Through phishing, Sally can ‘integrate herself into the system alongside him’ while Harry trusts the emails and requests, all to make his job run smoothly. The infiltration then spreads, and allows access to payroll systems, HR and corporate financial services. This illustrates the vulnerability of payroll very well. Protecting payroll data means protecting the entire financial ecosystem of an organisation. The cost of inaction The consequences of a successful payroll cyberattack can be devastating, ranging from
Payroll integrates with HR, accounting, banking and tax systems, providing a pathway to compromise other critical business functions. This interconnectedness amplifies the potential damage from a successful attack.
financial losses to reputational damage and legal repercussions. Beyond the immediate costs, data exfiltration can lead to longer-term problems such as damage to reputation and long-term legal battles. The costs of remediation far outweigh the investment in proactive security measures. It's easier and cheaper to implement a robust TPRM program now than to face the consequences of a breach later. As ransomware attacks continue to escalate, immediate actions to consider include reviewing incident and crisis management playbooks and employee data handling procedures. Conclusion The payroll profession is under siege. To protect this critical function, organisations must acknowledge the vulnerabilities, implement robust security measures, prioritise employee education and embrace TPRM solutions. Proactive protection offers organisations the opportunity to, not only improve employee data governance, but also to ensure the financial wellbeing of all those employed. n About C2 C2 is a UK risk management scaleup on a mission to transform organisations’ risk management through technological innovation. C2 helps organisations manage security and compliance in a way that's unique to their business and does more than simply ticking off digital checkboxes. C2’s industry-leading and award-winning platform supports the public and private sectors in managing their threat landscape and improving vendor controls, project, privacy and environmental, social and governance risks.
Changes are time-sensitive and executed quickly
Payroll runs on strict deadlines, creating pressure to process changes quickly which can lead to errors and oversights. The pressure to meet deadlines can lead to a lapse in security best practices. Access to sensitive employee data Payroll teams store bank account details, tax file numbers, personal ID and salary information, making them a treasure trove for identity theft and financial fraud. The data is high volume and has high value, making it prime property to protect. Third-party risk: the weakest link in the chain Many organisations outsource payroll processing to third-party providers, adding another layer of complexity to the security equation. While these providers offer expertise and efficiency, they also introduce new risks. These points of access expand the attack landscape making payroll more prone to attacks. Organisations should address the issue of where third parties handle data on their behalf, asking them, “how do you then evaluate and monitor the protocols in place to ensure this data is securely maintained and accessed?" This question underscores the need for robust TPRM. TPRM platforms offer a range of benefits for payroll security, including:
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| Professional in Payroll, Pensions and Reward |
Issue 109 | April 2025
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