Employee data under threat: preparing for cyber attacks
October is Cyber Security Awareness Month, a timely reminder that protecting data isn’t just an IT issue, it’s a business-critical responsibility. High profile cyber-attacks have demonstrated that in today’s digital world, threats are becoming more sophisticated, targeted, and costly.
While many organisations focus on customer data or financial systems, employee data is equally critical and cannot be overlooked. In this expert guide, we provide examples and the steps you can take to avoid an employee data breach.
Common cyber threats to businesses
There are three key examples of how cybersecurity threats may affect your business:
- Ransomware: Malicious software encrypts critical files, including HR and payroll data, and demands payment for their release. Without reliable backups, recovery can be extremely challenging.
- Social engineering and phishing scams: Employees are targeted with deceptive emails or messages designed to extract login credentials, confidential information, or prompt fraudulent transaction.
- Data breaches: Sensitive information can be stolen by external hackers or through internal errors, including employee records such as National Insurance numbers, addresses, and pension details.
Why an employee data breach is a key risk
Cyber criminals may attempt to gain access to your workforce’s data as this can prove valuable to them. Breaches of employee data can have wide-ranging consequences:
- Identity theft and financial fraud: Stolen data can be misused to open accounts, take out loans, or claim tax refunds.
- Reuse of passwords: Shared passwords across systems increase the risk that a breach in one area can spread across multiple accounts.
- Employee wellbeing: Breaches can cause anxiety, stress, and other mental health impacts.
- Trust breakdown: Employees may lose confidence in how their personal data is handled if a breach occurs.
- Operational impact: Large-scale attacks, such as the Jaguar Land Rover cyber-attack, which is said to be the costliest attack in UK history, shows that a large attack can disrupt operations, affect supply chains, and even lead to job losses.
- Vicarious Liability: Organisations can be held responsible for breaches caused by employees acting in the course of their work.
Steps HR and employers can take after an employee data breach
If your business faces a loss of staff data, then you should conduct a cybersecurity risk assessment to begin a process of prevention and recovery. Steps should include:
- Reviewing contracts and policies: Ensure employment contracts and internal policies clearly define expectations around data protection and cybersecurity, including disciplinary consequences for non-compliance.
- Offering new training: Employees should receive regular, role-specific guidance on spotting phishing emails, protecting credentials, and handling data securely. Training should be clear, practical, and easy to follow.
- Monitoring systems effectively: Oversight of emails, internet use, and internal communications can help detect early warning signs. Monitoring must comply with privacy laws and be transparent to staff.
- Strengthening internal controls: Limit access to sensitive information, encrypt data in storage and transit, implement multi-factor authentication (MFA), and conduct regular vulnerability scans and penetration tests to identify weaknesses.
- Establishing an incident response procedure: Clearly outline roles, reporting lines, and escalation procedures for cyber incidents. Quick, structured responses, supported by cyber specialists and legal advisors, can reduce harm and maintain stakeholder confidence.
