Is your ERP system as safe as you think it is?
Your ERP contains your company’s most valuable information. Customer lists. Supplier agreements. Payroll. Pricing… The list goes on.
And hackers know it.
Getting ERP data security wrong costs a lot. According to IBM’s latest data breach report, the average cost of a data breach is $4.99 million. That’s the highest cost ever reported.
Here’s the good news:
You don’t need a massive IT department dedicated to securing your ERP. You just need the right habits ingrained… and the discipline to follow through.
Inside this guide:
- Why ERP Data Security Matters For Growing Businesses
- What Makes ERP Systems Such A Big Target?
- 7 ERP Cybersecurity Best Practices
Why ERP Data Security Matters For Growing Businesses
ERP data security refers to how you protect the data within your enterprise resource planning system. Including hackers, leaks and human error.
Scale-ups find themselves in a difficult position. Every month you’re onboarding new employees, new equipment and new vendors. Every single one is a new entry point into your system.
Think about it:
One weak password used by someone accessing your ERP could mean an attacker gains access not just to one file but to your entire business, including financials, inventory, sales and human resources.
That’s why choosing a secure ERP platform from day one matters. Role-based access controls, audit logs, and data encryption options are just a few features built into modern systems like SAP business one that provide growing businesses with a great foundation for ERP data security. However, a platform alone won’t keep your data secure. How you configure and manage your ERP also plays a huge role in protecting your data.
What Makes ERP Systems Such A Big Target?
Hackers go where the value is. And ERP systems are packed with it.
Verizon’s 2026 Data Breach Investigations Report says hacking has become the most popular initial attack vector because attackers exploit software vulnerabilities. Verizon says it topped stolen passwords for the first time. 31% of attacks began this way.
Unpatched ERP software? That’s an open invitation.
However, technology isn’t the only vulnerability… Verizon also discovered that people were responsible for 62% of breaches examined in this report. Spear-phishing emails, poor passwords, misplaced trust. Cue sad violins.
Wait for it… Most of these attacks can be prevented with a few simple precautions.
7 ERP Cybersecurity Best Practices
Here are ERP cybersecurity best practices that apply to businesses both large and small. Address them one by one and you’ll put many of your competitors behind.
1. Lock Down User Access
Not everyone in your business needs to see everything.
Your warehouse team doesn’t need access to payroll information. Your sales team doesn’t need to be able to edit supplier bank accounts. This is called the “principle of least privilege”. Give users access only to what they need to perform their job.
Start by reviewing every user account in your ERP:
- Remove accounts for staff who have left
- Cut back permissions that are too broad
- Set up roles based on job function
Repeat this maintenance review quarterly. Access tends to get squirrely as time goes on.
2. Turn On Multi-Factor Authentication
Passwords alone just aren’t enough anymore.
Multi-factor authentication provides another layer of security during login. This can include verification prompts, such as a code sent to a mobile device. This means that even if a password is compromised, someone still can’t access the account without that second factor.
It takes minutes to switch on. And it blocks a huge number of attacks.
That’s one of the easiest wins in ERP security.
3. Patch Your System Fast
Remember that 31% stat from earlier?
Attackers are discovering and exploiting vulnerabilities faster than ever. Every day you don’t patch after your ERP vendor releases a security update, you are giving hackers more opportunity to attack.
Establish a patch timetable. Security patches should be published within days, not years. Remember any add-ons and plugins that integrate with your ERP… they’ll need patches as well.
4. Encrypt Your Sensitive Data
Encryption scrambles your data so only authorised people can read it.
Should a hacker manage to access encrypted files, they will only see scrambled text. Neat huh?
Make sure your data is encrypted in two places:
- At rest: when it’s stored on servers or in the cloud
- In transit: when it’s moving between systems or users
Ask your ERP vendor precisely how encryption is implemented in your configuration. If they don’t know, or can’t explain it to you clearly, RUN.
5. Check Your Third-Party Connections
Here’s something most growing businesses overlook…
Your ERP doesn’t exist in isolation. It integrates with payment systems, ecommerce platforms, shipping apps, etc. Each connection represents a potential back door.
Verizon discovered that almost half (48%) of all breaches involved a third party. This statistic is up from 30% from one year ago.
Before you connect any new tool to your ERP, ask the vendor:
- How do they protect your data?
- Who on their team can access it?
- What happens if they get breached?
Then keep a list of every connected app and review it regularly.
6. Train Your Team
Your people are your first line of defence… or your weakest link.
Phishing emails are becoming more sophisticated to detect. Now they’re even being written by AI. Ongoing staff training allows them to spot a phishing scam before clicking.
Keep your security training concise and applicable. Conduct mock phishing exercises every couple of months to identify victims. Then use the data to educate—rather than penalise—your employees.
The goal is simple:
Make security part of everyday habits.
7. Back Up And Test Your Recovery Plan
Even with every protection in place, things can still go wrong.
Ransomware can encrypt your entire ERP in minutes. Without clean backups, you could lose weeks of work or be blackmailed into paying.
Follow the 3-2-1 backup rule:
- 3x copies of your data
- 2x different storage types
- 1x copy stored offsite
Don’t stop with just making backups. Restore your backups to verify that they work. A backup you can’t restore is no good.
Putting It All Together
ERP data security isn’t a project you implement and then throw away. It’s an ever-expanding journey that should evolve with your business.
The best part? These seven steps don’t need a massive budget. To quickly recap:
- Lock down user access
- Switch on MFA
- Patch fast
- Encrypt your data
- Vet third-party connections
- Train your team
- Back up and test recovery
Begin with one or two today. Work on the others during the next few months.
Hackers are counting on growing companies not having time to secure themselves. Show them they’re wrong.
