By Julie Goh

When it comes to data vulnerability, as long as you are connected to the internet, there is a risk.

Smaller companies, especially, do not have the budget to hire experts nor purchase the equipment/facilities to ensure their data are kept safe and secure in their own servers.

This is why many companies are now switching to cloud-based software. This, basically means, the software application and data are hosted on remote servers and managed by the software vendor.

However, when it comes to picking the right vendor, especially for cloud payroll software, you MUST ensure your vendor is able to address your concerns satisfactorily on the following about data security and data protection:

  1. Data breaches: A data breach can occur if an unauthorised party gains access to employee data, which can result in identity theft, financial fraud, and other serious consequences.
  2. Cyber attacks: Cloud payroll software is vulnerable to a variety of cyber attacks, such as hacking, phishing, and malware.
  3. Data loss: Data loss can occur due to system failures, human error, or natural disasters, which can result in the loss of critical payroll data.
  4. Compliance: Cloud payroll software must comply with data protection and privacy regulations - Personal Data Protection Act Malaysia.
  5. Access controls: Cloud payroll software must have adequate access controls in place to ensure that only authorised users can access sensitive employee data.
  6. Encryption: Cloud payroll software should use encryption to protect employee data while it is in transit and at rest.
  7. Vendor reliability: Businesses must choose a reputable vendor with a proven track record of data security and protection.