Article
9 min read
Payroll Security: Core Strategies to Improve Resilience
Global payroll
Author
Shannon Ongaro
Last Update
August 20, 2025
Table of Contents
What is payroll security?
The biggest payroll security threats in 2025
8 expert tips to protect your payroll
Secure your global payroll data with Deel
Key takeaways
- Payroll security is becoming an increasingly critical issue as cyber-attacks become more sophisticated. Without an effective governance strategy, companies risk major breaches and significant losses.
- Great payroll security encompasses various aspects of your business, including the software you choose, regular audits, and employee training.
- Leading payroll providers like Deel help safeguard payroll data. We encrypt files both at rest and during transit, actively monitor the network for vulnerabilities, and provide a range of tools to manage access.
Payroll security is growing ever more important as cybercriminals continue to develop new ways to bypass security measures. Although providers consistently update their software in response to these threats, in 2024 alone, 40% of all breached records involved employee PII, costing an average $189 per record.
By taking a proactive approach to payroll security, you can help your team deflect these attacks.
With a global track record in secure payroll management, Deel leverages industry-leading measures like encryption, real-time monitoring, and tailored access controls to address these vulnerabilities head-on.
This guide outlines essential payroll security tips for 2025, providing concrete strategies and best practices to ensure your system’s resilience. By adopting these proactive approaches, organizations can expect enhanced data protection, improved compliance, and a renewed sense of trust among employees and stakeholders alike.
What is payroll security?
Payroll security is the implementation of protective measures to safeguard employee data and information throughout the payroll process. This includes procedures and systems designed to keep information secure and minimize the risk of payroll fraud, phishing attempts, and other security breaches.
Further reading: See Deel’s Trust and Security Center and the NIST Cybersecurity Framework for foundational guidance.
Deel Payroll
The biggest payroll security threats in 2025
| Threat | How the attack works | Damage potential |
|---|---|---|
| Business email compromise (BEC) / payroll diversion | Attackers spoof HR or finance addresses to redirect direct‑deposit details. | Lost payroll funds, W‑2 identity theft |
| Phishing and AI‑generated deep‑fakes | Convincing emails, voice calls, or videos trick staff into revealing credentials. | Credential stuffing, fraudulent tax filings |
| Insider manipulation | Disgruntled or pressured staff create ghost employees or inflate hours. | Long‑tail financial leakage; audit failures |
| Shadow‑AI and unsecured integrations | Unvetted AI tools or middleware store payroll data outside secure environments. | Unencrypted data exposure; compliance gaps |
| Third‑party vendor compromise | Breach at a downstream provider (tax, benefits) cascades into payroll. | Joint‑liability fines; service disruption |
Deel IT
8 expert tips to protect your payroll
Secure your payroll by choosing the right platform, enforcing strong controls, and maintaining continuous vigilance.
Choose software with robust security features
Look for built-in controls such as role-based access, MFA, SSO, credential vaulting, and next-gen firewalls. Verify certifications like SOC 2, ISO 27001, GDPR, and CCPA.
Ask the right questions
- Incident Response: “Do you have a documented and tested breach-response plan?”
- Consistency: “Is your data protection identical in every location?”
- Audit Cadence: “How often do you conduct third-party audits and internal reviews?”
- Backup Practices: “How frequently are backups made and how are they secured?”
- Training & Resources: “Can you share tools and docs on payroll data security?”
- DPA: Read the provider’s Data Processing Agreement (DPA) for GDPR-level commitments.
Enforce strong AES-256 encryption
Require AES-256 (or stronger) for data at rest and in transit, with secure key management and regular algorithm updates.
Verify infrastructure certifications
Ensure your provider holds current SOC 2 Type II (annual) and ISO 27001 (triennial) certificates and uses reliable cloud hosts (AWS/Azure/GCP) with continuous monitoring.
Perform ongoing vulnerability management
Follow an “Assess → Prioritize → Remediate → Reassess → Improve” cycle with monthly tests, risk-based patching, and verification scans.
Watch: Zero-trust security for hybrid teams: Practical implementation tips
Join Deel IT and JumpCloud experts for a webinar on how to implement zero-trust security for hybrid teams. We’ll cover conditional access strategies, multi-factor authentication (MFA) best practices, and device security essentials to help you reduce risks and keep your remote teams protected.
Implement device and network controls
Mandate VPNs for remote access and deploy Mobile Device Management (MDM) solutions to enforce updates, encryption, and remote wipe.
Learn more about the best MDM solutions for device security.
Develop an Incident Response and Recovery Plan
Define roles and steps for Preparation, Detection, Containment, Eradication, Recovery, and Post-Event Review. Include real-time alerts and clear communication protocols in your data protection policy—get your free policy template here.
Stay compliant with global data regulations
Map out GDPR, HIPAA, CCPA, and other local laws. Confirm your provider’s DPA covers sensitive fields (SSNs, bank details) and breach-notification procedures.
How Responsible Cyber manages its international team with Deel
Responsible Cyber is a start-up specializing in cybersecurity and risk management. They carefully reviewed 10+ international HR platforms in search of a solution that aligned perfectly with its values and requirements.
Deel was chosen for its high level of international security standards and its customer service. Beyond the platform's robust technical merits, it was Deel's exemplary and personalized account management that further cemented the decision.
“When it comes to dealing with local laws and tax regulations in multiple countries, relying on Deel is a game-changer. Now, I can focus on growing our business while Deel takes care of the hiring logistics.” — Dr. Magda Chelly, Co-Founder & Managing Director, Responsible Cyber
Secure your global payroll data with Deel
Businesses must make payroll data security an ongoing priority. Taking a proactive stance and developing a strong governance strategy can protect you from numerous cyber threats.
Partnering with Deel means you can focus on training your team and developing your policies. Deel IT makes it easy to enforce global security, identity, and compliance standards with zero-touch controls, even on day one or when offboarding.
What’s more, Deel Payroll is available in over 130+ countries, so there will be no gaps in your system.
Want to be sure your payroll data is safe? Book a demo to learn more about Deel Payroll and our security tools and features.
FAQs
Why is payroll confidential?
Maintaining payroll confidentiality is essential to protect sensitive employee information, such as social security numbers and bank account details, from unauthorized access and potential misuse. Ensuring confidentiality helps prevent identity theft, financial fraud, and other security breaches.
What employee information is confidential?
Confidential employee information includes personal and financial details collected and stored as part of the payroll process. This encompasses data such as social security numbers, bank account information, and other sensitive personal details.
What is payroll verification?
Payroll verification involves confirming the details of an organization’s payroll data. This includes an employee’s pay rate, banking details, hours worked, overtime rate, bonuses, and more. The purpose of payroll verification is to ensure the correct information is being used to determine and pay employees.
Who should have access to payroll information?
Access to payroll information should be restricted to authorized personnel only. Limiting access to sensitive data reduces the risk of data breaches and unauthorized disclosures.
Shannon Ongaro is a content marketing manager and trained journalist with over a decade of experience producing content that supports franchisees, small businesses, and global enterprises. Over the years, she’s covered topics such as payroll, HR tech, workplace culture, and more. At Deel, Shannon specializes in thought leadership and global payroll content.
