Closing in on payroll data protections

Data protection breaches in the UK are projected to surge by 8.6% in 2024, following a significant increase in incidents over the past year. Research from The Global Payroll Association (GPA) indicates that by the year’s end, UK businesses will have experienced a total of 3,483 data breaches. This marks a concerning trend in a landscape where incidents had previously seen a downward trajectory from 2019 to 2022.

In 2023 alone, the UK recorded 3,209 personal data breaches, a staggering 41% increase over the previous year. This sharp rise follows a period of improvement where breaches had declined by 13% in both 2020 and 2021, and by an additional 3% in 2022.

Analysis of reported data from the first two quarters of 2024 reveals that there have already been 1,892 breaches, highlighting a concerning acceleration in incidents. Businesses are particularly vulnerable in areas such as customer service and human resources, with HR departments bearing the brunt of cyber attacks due to their handling of sensitive employee data.

The payroll sector, often overlooked, has also emerged as a critical target for cybercriminals. The sensitive financial information contained in payroll systems, including national insurance numbers and bank details, presents a lucrative opportunity for attackers. Such breaches can lead not only to financial losses for employees but also pose a significant risk of extortion for employers.

Melanie Pizzey, CEO of the GPA, emphasised the pressing need for businesses to enhance their data security protocols. She noted, “The explosive rise in reported breaches over the last two years has undone much of the progress made previously. Data security must remain a top priority as the business landscape evolves.”

With National Computer Security Day approaching on 30th November, the GPA urges businesses to critically evaluate their data protection measures, advocating for both rigorous internal safety protocols and due diligence when selecting third-party payroll providers.

As the threat of data breaches looms larger, it becomes imperative for businesses to not only protect sensitive information but also to foster a culture of security awareness among employees. The increasing complexity and frequency of cyber threats necessitate robust and adaptive strategies to safeguard against future breaches.