How can data security affect your recruitment process?
Protecting information online is vital for all businesses and with security threats constantly arising, this often becomes a increasingly challenging task.
This came into light recently when nine people were found guilty of hacking into press release websites, using the confidential data to make stock market trades before the information was made available to the public.
According to US Attorney Paul Fishman, the attacks on the three newswire websites were well-organised, sophisticated and aggressive, and put companies trading in the NASDAQ and NYSE in a jeopardising position where they could lose money due to unfair trading.
The group managed to gain access to around 8,000 press releases that directly influenced their trading decisions, making approximately $US30 million in illegal profits.
The case highlighted the importance of safe data storage and publication for all the different parties a business is involved with. This is especially true for businesses in Australia, as a Telstra report found 39 per cent of Australian companies were unprepared for a cyber security breach last year.
Any weak link in the chain can lead to a breach of highly sensitive information and your company could find itself at risk of losing profits once this falls into the wrong hands.
The importance of data security in recruitment
Potential parties that could affect your data security extend across all areas of your business, including recruitment. Bringing unfamiliar people into your company always carries risks and according to a report by EY, there are real dangers of database compromises.
New hires have been known to break into HR software and alter payment records for their benefit. This could include adding overtime or falsifying the number of hours worked and may occur through collusion with an existing payroll employee. Another common occurrence is the creation of "ghost accounts", when money is sent to an unverified bank account or to nonexistent employees.
One of the ways these risks can be mitigated is through the utilisation of secure payroll software. Only the most trustworthy and senior workers in your company should be able to access and change information in the employee database and a secure software solution can ensure that this stays safe in their control. Ongoing training should be provided for them to adapt to the changing cybersecurity environment and give them measures to tackle any potential threats.