Imagine walking into work one morning and discovering your entire payroll system is locked—and the only way to unlock it is by paying a ransom. Unfortunately, for thousands of businesses, this isn’t fiction—it’s reality.
Cyberattacks are no longer just targeting big corporations. Small and mid-sized businesses, especially those handling sensitive employee data, are now prime targets. HR systems store everything from Social Security numbers to direct deposit details—making them a goldmine for cybercriminals.
At Lift HCM, we’ve seen how vulnerable businesses can be without the right protections in place. That’s why we’re sharing these cybersecurity best practices—so you can protect your data, your people, and your peace of mind. By the end of this article, you’ll understand the top threats businesses face in 2025 and beyond, how to secure your payroll and HR systems from evolving cyber risks, practical, actionable steps you can take today to prevent data loss, and what to look for in a cybersecurity-aware payroll and HR partner.
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Cybersecurity isn’t just an IT issue—it’s a business issue. When employee data is exposed, the consequences can include legal liabilities, lost trust, and major financial setbacks.
Fast Fact: According to the 2023 FBI Crime Report, Americans lost $12.5 billion to online scams—up from $10.3 billion the year before.
Key vulnerabilities to watch for:
Stolen login credentials
Business Email Compromise (BEC)—up 81% in 2023, costing $4.9M per incident
Phishing scams targeting payroll or HR staff
Malware or ransomware locking down HR systems
Data leaks from unsecured cloud platforms
Action Steps:
Conduct regular security audits on your HR and payroll systems
Review who has access to sensitive employee data
Create an incident response plan in case of a breach
📉 Did You Know? 95% of breach causes are due to human error, 40% phishing, 11% malware, and 22% hacking.
Understanding the real-world impact of cyber threats can motivate better practices. Here are some compelling statistics:
📌 Human Error: 95% of cybersecurity breaches are due to human error, highlighting the need for continuous training.
📌 Phishing, Malware, and Hacking: Nearly 40% of breaches involve phishing, 11% involve malware, and 22% involve hacking.
📌 Social Engineering: 65% of cybercriminal groups rely on social engineering and spear-phishing.
📌 Financial Losses: Americans lost $12.5 billion to online scams in 2023, a significant increase from $10.3 billion in 2022.
📌 Business Email Compromise (BEC): BEC attacks increased by 81% in 2023, costing companies an average of $4.9 million per incident and contributing to $43 billion in losses in the US from 2016 to 2023.
📌 IT Department Sophistication: 54% of companies believe their IT departments aren’t sophisticated enough to handle advanced cyberattacks.
A staggering 95% of cybersecurity breaches are caused by human error. Most data breaches happen because someone clicks a suspicious link, reuses a weak password, or downloads a malicious file.
Training your people is one of the most effective and affordable ways to reduce your risk.
Action Steps:
Launch mandatory onboarding cybersecurity training for all new employees within 30 days
Offer short 5-minute training videos monthly for ongoing awareness
Run phishing simulations to test real-world readiness
Use the “hover over before you click” rule for suspicious links
While AI advances create new threats, phishing and ransomware remain persistent challenges. Here's how to protect your organization.
Phishing emails continue to evolve. Cybercriminals are using legitimate domains and impersonation tactics to create convincing scams.
Impersonation Attacks
What Happens: Attackers mimic trusted brands like PayPal or Intuit.
The Risk: These emails often lack overt red flags, making them particularly dangerous.
Did You Know? Business Email Compromise (BEC) attacks increased by 81% in 2023, causing severe financial losses.
Key Takeaways:
Phishing emails are becoming increasingly sophisticated
Impersonation attacks can appear deceptively authentic
Continuous vigilance and advanced email security are necessary defenses
Action Item: Create a system of education so your employees are trained on detection to identify suspicious emails.
Below are screen shots from fraudelent emails that were sent to two of our employees as well as notes our IT department called out for continual internal awareness and education:
Some signs are that the domain it sends from is “bcbsil.health” instead of “bcbsil.com”.
All other links in the email, upon hovering, direct to the same URL, which is outside the bcbsil.com domain or any recognized providers.
If the unusual links did not capture your attention, it is questionable why Blue Cross would direct Adobe to the same link purportedly intended for your claim.
Not every employee needs access to everything. And yet, many data breaches happen because credentials are shared, permissions are too broad, or systems lack multi-factor authentication.
Think of it like giving out house keys—only the right people should have access, and they should only go into the rooms they need.
Action Steps:
Implement role-based access for HR, payroll, and sensitive business data
Enforce strong password policies and multifactor authentication (MFA)
Disable shared logins and audit user activity regularly
Rotate admin credentials every quarter
Cybercriminals love old software. If your system is behind on updates or patches, it becomes an open door.
Likewise, without secure, reliable backups, a ransomware attack could mean permanent data loss. According to isolved, today’s ransomware groups often use double-extortion tactics: they lock your data and leak it publicly.
Action Steps:
Enable automatic updates for all payroll, HR, and operating systems
Backup critical business data daily using secure offsite or cloud storage
Test your backup restore process at least twice a year
Schedule regular vulnerability scans using tools like Rapid7 or BurpSuite
Your payroll and HR provider should be more than convenient—they should be cybersecurity strongholds. You’re trusting them with your most sensitive business and employee data.
At Lift HCM, we don’t just say we take security seriously—we invest in it. We partner with isolved, a platform backed by military-grade encryption, full-time cybersecurity professionals, and best-in-class compliance frameworks.
Key security standards to look for:
Use of AI-powered email protection tools like Mimecast or Proofpoint
Regular internal and external penetration testing
Encrypted data in transit and at rest
Action Steps:
Ask your vendor how they monitor and respond to threats
Request documentation of certifications and breach protocols
Confirm they offer ongoing compliance updates and support
Staying cybersecure doesn’t have to be overwhelming. Here’s a simple checklist you can use today to spot weaknesses and start building stronger data protection habits.
Implement a comprehensive email security platform with behavior-based threat detection (e.g., Mimecast, Proofpoint, Barracuda)
Conduct regular security awareness training, including phishing simulations
Train new employees within a month of hiring and provide ongoing training with short videos
Ensure all laptops and servers have advanced antivirus protection
Provide deepfake security awareness training to staff
Use a call-back strategy to verify suspicious communications
Hire a third party for yearly internal and external penetration tests
Invest in dark web monitoring services (e.g., Fortalice, Zero Fox, Cyberint, SpyCloud)
Use firewalls (e.g., Fortinet, Cisco) and endpoint security with SIEM tools
Implement web application firewalls (WAFs)
Regularly scan servers and virtual machines (e.g., Rapid7, BurpSuite)
Conduct regular code scanning for vulnerabilities (e.g., CheckMarx, Veracode)
Keep software up to date with regular patch management
Employ multi-factor authentication and remove local admin rights on laptops
Encrypt data in transit and at rest
Protect websites and logins with HTTP security headers
Educate employees on limiting personal information sharing on social media
Use antivirus tools for cell phones if accessing sensitive information
Avoid scanning QR codes and volunteering unnecessary data
Analyze website and login for HTTP security headers using tools like Google Dev Tools and Securityheaders.com
Ensure a DMARC policy is in place using tools like mxtoolbox.com
Check SSL/TLS scores using Qualys and Immuniweb
14 Best Practices for Protecting Company Data
In the past, cybersecurity felt like something only big companies had to worry about. Today, every business—no matter its size—faces real, growing threats, especially in HR and payroll systems. AI-powered attacks, phishing scams, and ransomware don’t discriminate.
The future? It’s secure—but only for businesses who prepare. With the right knowledge, proactive habits, and a partner like Lift HCM, you don’t have to face these challenges alone. We’re here to help you simplify compliance, secure your data, and grow your business with confidence.
Ready to take the next step? Reach out to Lift HCM and let’s talk about making your business more secure—together!