Payroll & HR Systems: New Cyberattack Targets | Riverside Technologies

A recent campaign targeting payroll systems shows attackers are going after payroll and HR to redirect funds and steal personal data. Small and mid-size businesses are at risk — here’s how to make payroll safer.

Cybercriminals are increasingly targeting payroll and HR systems because they are lucrative and — all too often — under-protected. A recent campaign nicknamed “payroll pirate” demonstrated how attackers can manipulate payroll workflows to redirect legitimate paychecks. While the incident highlighted universities, the techniques used are applicable to businesses of all sizes.

Many small and mid-sized businesses assume they’re “too small to be targeted.” That assumption is dangerous. Payroll and HR systems contain direct access to funds, personal identifying information (PII), tax documents, and vendor banking details — information attackers can monetize quickly.

Why Payroll & HR Systems Are Attractive to Attackers

Direct financial impact: Payroll systems control the flow of money — redirect a payment and attackers profit immediately.
Valuable data: SSNs, bank details, tax forms, and employee PII can be sold or used for identity theft and fraud.
Often under-secured: Payroll and HR software may be managed by non-IT personnel or rely on legacy configurations and weak access controls.
Third-party dependencies: Many organizations use outsourced payroll vendors or cloud HR apps; a weakness at a vendor becomes your weakness.

Four Practical Steps to Secure Payroll & HR Systems

Below are four actionable, business-friendly measures every organization should take immediately. These are practical steps you can implement with your internal IT team or with your Managed IT provider.

1. Strengthen Access Controls (and Use MFA)

Restrict who can view, edit, and approve payroll and HR data. Apply the principle of least privilege — give people only the access they need to do their job. Require strong authentication for all payroll and HR logins, including Multi-Factor Authentication (MFA) for anyone who can initiate changes or process payments.

Quick wins: remove generic/shared accounts, enforce unique logins, enable MFA for administrative users, and review access monthly.

2. Segment Payroll Systems from General IT

Network and application segmentation reduce the blast radius if an attacker compromises another part of your environment. Keep payroll servers, databases, and administrative consoles on a separate network segment or virtual environment and limit the systems that can connect to them.

Quick wins: create a dedicated network zone for payroll, block unnecessary inbound connections, and restrict administrative access to a small number of secured workstations.

3. Maintain Audit Logs & Review Them Regularly

Comprehensive logs (who changed what, when, and from where) are essential for detecting fraud and proving what happened during an incident. Enable audit logging in your payroll/HR software and in any systems that integrate with payroll (banking integrations, SSO, etc.).

Quick wins: turn on detailed logging, forward logs to a centralized system, and schedule weekly reviews of unusual activity such as new payment destinations or changes to employee banking information.

4. Implement Change Management & Segregation of Duties

No single person should be able to change payroll bank details and also issue payments. Put controls in place so that critical actions require multiple approvals and are documented in a formal change process. This reduces opportunities for insider abuse and makes fraud much harder to execute.

Quick wins: require dual approvals for banking changes, mandate documented change requests, and keep a clear record of who approved each change.

5. (Bonus) Harden Vendor & Third-Party Integrations

If you use a payroll vendor or cloud HR service, verify their security posture and contractual responsibilities. Make sure integrations use secure APIs, that vendor access is limited and logged, and that you have tested backup and restore procedures that include vendor data.

Quick wins: request vendor SOC 2 reports or similar assurances, enable per-vendor access controls, and include incident notification timelines in contracts.

Other Practical Protections

Back up payroll data regularly and test restores — a clean backup can be a business saver after an attack.
Train HR & payroll staff frequently on social engineering, validation of payment instructions, and how to spot spoofed emails or voicemail requests.
Use secure communication for payment changes: require verbal confirmations over a known phone number or use secure vendor portals for banking updates.
Monitor for anomalous transactions: set thresholds and alerts for unusual payment destinations or amounts.

What to Do If You Suspect Payroll Fraud

Immediately freeze payroll processing and block the affected accounts or integrations.
Notify your bank and ask them to halt suspicious transfers if possible.
Preserve logs and evidence — do not overwrite or delete audit records.
Engage your MSP or a cybersecurity responder to investigate and remediate.
Notify impacted employees and comply with any legal/regulatory reporting requirements.

How Riverside Technologies Can Help

Payroll and HR security is a business problem — not just a technical one. Riverside Technologies helps organizations reduce payroll risk through:

Access control & MFA implementation
Network segmentation and secure architecture
Centralized logging and 24/7 monitoring
Vendor security assessments and contract review
Incident response planning and tabletop exercises

If you rely on payroll or HR systems to run your business, now is the time to reassess. Schedule a free payroll security review with our team and make sure your people, processes, and systems are protected.

Request a Free Payroll Security Review

Payroll & HR Systems Are Now an Attack Focus — Are You Vulnerable?