Why Employee Personal Information Makes Businesses Prime Identity Theft Targets

Today’s businesses are gold mines of personal data, holding everything from Social Security numbers to financial information of employees. Businesses invest a lot in customer information security, but employee data is an even better target for hackers. Understanding why businesses are at risk can help organizations strengthen their protocols before they become the next headline. 

The Value of Employee Data

Employee records contain personal information that’s far more expansive in nature than what most consumers share with businesses. HR databases typically contain complete Social Security numbers, home addresses, direct deposit bank account information, names and telephone numbers of emergency contacts, and complete work histories. It is therefore a one-stop shop for identity thieves who will utilize the information to obtain credit accounts, prepare fraudulent tax returns, or even assume an individual’s complete identity.

Even employees themselves do not know how much personal information is being stored by their company. Beyond the obvious payroll data, companies keep copies of driver’s licenses, passport information, background check results, and health insurance information. Cybersecurity experts, Cybernews, have an Aura discount code for identity theft protection services that individuals can use, but companies should be aware that one breach can allow decades of accumulated personal data for hundreds or thousands of employees onto the marketplace.

Why Businesses Become Attractive Targets

Centralized Data Storage

Individual consumers have their information scattered in a number of locations, but businesses bring employee data into HR data systems. Centralization enables one successful attack to be extremely worthwhile for cybercrooks. Rather than targeting people individually, the attackers can potentially access a thousand full identity profiles with a single attack.

Weaker Security Protocols

Most companies focus their strongest security measures on customer-facing infrastructure and financial data, unwittingly opening up vulnerabilities around employee data. HR systems may be using older software and receiving fewer patches, or have greater access permissions than other core business systems.

Trust and Access Patterns

Employee information systems are likely to require wider internal access than customer databases. Human resources staff, payroll accountants, managers, and sometimes IT professionals need regular access to employee information. The increased access creates more entry opportunities for bad actors.

High-Risk Information Categories

Some types of employee information present a particularly severe risk if compromised. Tax returns and W-2s contain all it takes to commit tax fraud. Direct deposit information can be used to access an account or conduct unlawful transactions. Emergency contacts can be used for social engineering attacks on relatives.

Employee health information maintained by employers is another risk. Dependent information, insurance data, and medical history can be used for medical identity theft or insurance fraud.

Protecting Your Organization

Employees’ information must be treated in the same manner as customer data with the same protections. This means having good access controls, encrypting sensitive data in transit, and conducting regular security audits of HR systems.

Continuous employee training on phishing attacks and social engineering can prevent many of the attacks prior to their initiation. Companies also need to develop separate incident response plans for employee data breaches since these usually have separate notification processes compared to customer data breaches.

The sheer volume of personal data collected by firms makes them natural targets for identity thieves. Knowledge of these threats and the implementation of appropriate controls protects both the business and its most valuable asset: its employees.