Six basic HR data security threats in 2026

As companies store sensitive employee information like Social Security numbers, banking details, and addresses digitally, the need for strict data protection has never been greater. The rise of remote work, evolving regulations, and an uptick in cyberattacks make it essential for HR teams to prioritize strong security measures to mitigate risks.

This article explores the most pressing HR data security heading into 2026, answers key questions about human error, and provides actionable strategies to protect HR data.

1. Compliance and global data protection laws

Data protection laws worldwide are rapidly expanding. The EU’s GDPR laid the foundation, but similar frameworks have emerged, including Brazil’s LGPD and California’s Consumer Privacy Act (CCPA). For HR departments, navigating these complex and often overlapping laws is a significant challenge.

Non-compliance can lead to steep fines and harm your company's reputation. GDPR fines, for instance, can reach up to €20 million or 4% of global revenue. HR teams need to ensure their HRMS can manage compliance across these regions.

Recommendation: Conduct regular compliance audits and work with legal experts to ensure that HR data storage and processing meet all applicable regulations.

2. External partners

Recent AAG research suggests that up to 60% of organizations decide who to collaborate with based on the level of cybersecurity risk they present.

This isn’t to label all potential partner organizations a risk, but it does mean a likely demand for more rigorous assessments when an organization looks to outsourcing services as an option. 

Recommendation: When assessing new partners, suppliers, or service providers, be sure to check their cybersecurity practices. It's wise to use a consistent framework to evaluate their data security, compliance with regulations, and how they handle incidents.

For major changes like mergers or investments, involve cybersecurity experts early to spot vulnerabilities. Prioritize HRMS software and vendors with transparent data security protocols and certifications like ISO 27001 or SOC 2.

3. The threat of insider attacks

Insider threats, whether intentional or accidental, are a persistent risk. A disgruntled employee with access to sensitive data could steal or leak it, while an untrained employee could inadvertently compromise data security. According to ISACA, insider threats account for around 60% of all data breaches.

Recommendation: Implement strict role-based access controls so that employees can only access the data necessary for their roles. Additionally, establish regular training programs to educate employees about cybersecurity best practices.

4. Ransomware attacks on HR systems

Ransomware remains one of the fastest-growing cyber threats. Cybercriminals are targeting HR systems to access sensitive employee data and demand ransoms for its return. Paying these not only encourages further attacks but may also violate emerging legislation aimed at curbing ransomware payments.

Key stat: The global average cost of a ransomware attack on businesses rose to $4.5 million in 2023 (IBM Cost of a Data Breach Report).

Recommendation: Invest in advanced endpoint protection, create regular backups, and test incident response plans to minimize the impact of ransomware attacks.

5. Remote and hybrid work vulnerabilities

The shift to remote and hybrid work has introduced new vulnerabilities. Employees working from home often use personal devices or insecure Wi-Fi networks, which can expose sensitive HR data to cyberattacks. A Tenable study revealed that 74% of businesses have experienced cyber incidents linked to remote work technology.

Recommendation: Implement VPNS, MFA, and endpoint monitoring tools to secure remote access to your HRMS.

6. Human error: Easy passwords and lack of awareness

As always, human error is the weakest link in data security. Using weak passwords, sharing credentials, or falling for phishing scams are common mistakes that expose HR data to risks. In fact, Verizon’s 2024 Data Breach Investigations Report found that 68% of data breaches involve a human element.

Recommendation: Establish mandatory password policies requiring strong, unique passwords and encourage the use of password managers. Regularly conduct phishing simulations and cybersecurity training.