Many small and medium-sized businesses believe cybercriminals only target large organisations with deep pockets.
The reality is very different.
Cybercriminals increasingly target SMEs because they often have fewer security measures in place, making them easier to compromise. One of their favourite entry points is payroll software, which stores valuable financial and personal information.
According to Clyde van Wyk, Director at Deel Local Payroll, powered by PaySpace, smaller businesses should not assume they are too small to become victims.
“There are two things that every business should think about for security. First, large businesses can afford tougher security, which makes them harder to attack. Second, criminals don’t just want money. They often want data such as personal and banking details, which they can resell to other criminal groups for fraud or identity theft. That makes a payroll system very attractive because it contains all that information.”
Why small businesses are attractive targets
Rather than avoiding SMEs, cybercriminals often see them as easier opportunities.
According to Cybercrime Magazine, four out of five small businesses experienced a cyber breach during 2025, while SMEs face 350% more social engineering and impersonation attacks than larger organisations.
Payroll systems are particularly appealing because they contain sensitive employee information, including banking details, salaries, identity information and contact details.
Payroll attacks are becoming more sophisticated
Cybercriminals use several methods to exploit payroll systems.
Some change banking details to divert salaries into fraudulent accounts.
Others encrypt payroll data shortly before salary processing, forcing businesses to choose between paying a ransom or delaying employee payments.
Some attackers threaten to publish confidential salary information, while others use payroll systems as a gateway into finance, HR and other business systems.
Van Wyk says the risk extends beyond payroll itself.
“If you think you have nothing worth stealing, look at it from the perspective of your payroll system. It shares information with your finance and HR systems. Here’s a simple example: your payroll has your employees’ email addresses. The information can use that to target employees with phishing attacks. Just like that, they might get access to sales data, customer records, executive travel details. Getting into payroll and HR opens many doors for them.”
How SMEs can strengthen payroll security
Improving cyber security does not always require major investment.
Modern cloud-based payroll platforms provide security features that many smaller businesses would struggle to implement on their own.
These platforms typically offer:
- Automatic software updates and security patches.
- Dedicated security teams monitoring emerging cyber threats.
- Multi-factor authentication.
- Role-based user access and separation of duties.
- Detailed audit trails and approval workflows.
- Vendor-managed infrastructure monitoring.
- Strong encryption and recognised security certifications such as ISO 27001, SOC 1 and SOC 2.
- Compliance with privacy regulations, including POPIA and GDPR.
Security starts with people
Technology alone is not enough to protect a business.
SMEs remain responsible for training employees, promoting good cyber hygiene and implementing security policies that support tools such as multi-factor authentication.
Van Wyk says businesses should also expect their software providers to play an active role in protecting customers.
“Your payroll vendor must show you they take security seriously. It’s not enough if they say, ‘We have this many security people and encryption and such things.’ They should also help you design roles, provide training for staff, and be on hand to answer your questions. This will take considerable pressure from the business and make sure you get full value from your payroll software.”
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