Payroll data security concerns mount as cybersecurity issues become more prominent

- Data security and cyber risks are the biggest payroll technology concern for businesses of all sizes (31% of midsize, 36% of enterprise).
- Just 37% of midsize businesses and 39% of enterprise firms are very confident in their ability to protect payroll data from cyber threats.



A new study from global leader in payroll and payments solutions, CloudPay, has revealed a critical vulnerability in payroll operations, as concerns grow around safeguarding sensitive employee data against cyber threats.



While automation and AI use are gaining traction in payroll, the firm’s Future Readiness Report highlights that data security remains the number one concern for businesses globally, cited by 31% of midsize firms and 36% of enterprise organisations. Yet confidence levels do not reflect this priority, suggesting that many businesses are still missing the tools, processes, or expertise to address this growing threat.



According to the report, disconnected systems and fragmented processes are exacerbating the problem, creating vulnerabilities that cybercriminals can exploit. For organisations operating across multiple territories, these risks multiply, making unified, secure payroll solutions a strategic necessity rather than a technical upgrade.



Confidence gap



Despite data security being the top payroll technology concern, confidence remains low. Just 37% of midsize organisations and 39% of enterprise firms say they are “very confident” in their ability to protect payroll data, leaving the majority exposed to escalating risks.



Tim Grieveson, Chief Security & Risk Officer at CloudPay, commented:



“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.”



“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.”



“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.”



“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.”



To read the Future Readiness Report, and create a report tailored to you and your business, visit: https://www.cloudpay.com/future-business/


ENDS




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The Future Readiness Report was compiled using 200 respondents worldwide, all at organisations operating in at least 2 territories
83 from mid-market organizations (headcount of 150-999)
117 from enterprise organizations (headcount of 1000-9999)





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