Many small businesses are leaving themselves exposed to security breaches when it comes to payroll and employee information, according to a new survey from the CFO Daily News. Rather than distributing such information through secure or encrypted networks, many companies are simply sending out their payroll data through traditional methods, the survey revealed.

Results indicated that 69 percent of IT professionals deliver their payroll data through unsecured email. Meanwhile, approximately half said they send sensitive payroll and other data through unsecured channels at least once a week.

To improve data protection, AllBusiness.com suggests implementing three basic steps to improve internal security and the dissemination of secure data. Paychecks and pay stubs should have very limited data, including limiting the use of social security numbers, employee identification numbers and background information. Companies should also create multiple security layers for systems where payroll data is stored.

This week, a group of contractors hired by the government of New York City were alleged to have embezzled approximately $80 million of city payroll funds through an elaborate payroll protection scandal, the New York Post reports.

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