According to Forbes, internal payroll fraud happens in 27% of all businesses. External payroll fraud, via security breaches, is just as dangerous. Find out what you can do to safeguard your payroll data and prevent losses originating both outside and inside your organization.
You probably audit your finances on a regular basis – it’s much more pleasant than waiting for the IRS to do it – and you should also audit your payroll process.
Regularly review your security procedures, ensuring that your entire team is following best practices and completing required tasks appropriately. During an internal procedural audit it can be particularly helpful to review the division of duties. A tried-and-true method for avoiding accounting fraud is to distribute tasks among different people, so no one person can misappropriate finances without being observed.
Other items to investigate during your assessment should include data storage and information transmission policies.
Regular system updates are vital to maintaining the security of your payroll system. If you are using a cloud or browser-based interface in your payroll process, then these items must stay current as well. Hacker technology is constantly evolving, and you need to make sure every crack in your system is filled before dangerous elements can filter in.
Make it standard operating procedure to update all passwords monthly, following security best practices. This means you should never set a password as “PASSWORD” or use easily-guessed combinations of personal information (birthdays, anniversaries, etc).
Sensitive data should only be accessible to those who absolutely require the information to execute their jobs. Protocols should be enacted that prohibit those employees with access from sharing sensitive information in any form.
Securing your payroll is securing the future of your company! Working with a trusted Payroll Processing company ensures that your data is protected. At Future Systems, we pride ourselves on staying ahead of industry and legislative changes as well as meeting all necessary security measures.
Trust Future Systems with your payroll. We offer complete payroll solutions that are secure, reliable, and can be integrated into a holistic suite of HR process software. We can make your workflow more efficient, and we can do it safely.