7 Common ERP Security Issues and How To Fix Them

Supriya Saxena

Supriya Saxena

Senior editor

Parul Saxena

Chief editor

Last updated: July 5, 2021

Did you know, in a survey of IT decision-makers, 53% said ERP was an investment priority?

Well, the advantage of all-in-one solutions like ERP software is that they remove the need for multiple software applications. This, in turn, helps you improve data consistency and ensure all daily operations are streamlined.

However, with any fully comprehensive system, there are bound to be some weak spots and vulnerabilities that must be dealt with. 

This blog will help you understand common ERP security issues and how you can avoid them. 

7 Common ERP Security Issues and How to Combat Them

1. Delayed Updates

Did you know, 87% of business computers have outdated software? These include ERP systems too. Over a period of time, this can become a huge issue for your business. 

Now, you might think, how is that possible? Well, if your version is currently unsupported, it can get difficult to rectify any issues and even crashes. Thus, exposing your business to risks such as data thefts and many other problems. 

This is why updates happen, sometimes to bring in new features but primarily to address weaknesses in the system. As we all know, cybercrime is thriving, and hackers are finding new ways to break the highest of data security measures. 

Thus, it is suggested that you install updates and even upgrade your system if needed. Automated ERP is growing as a concern, and it helps to stay abreast with the latest trends. 

How To Prevent It?

If you find yourself lagging in implementing ERP and its updates, then it is suggested that you look for a tool that does it automatically. It will apply any software updates when available and save you the hassle. 

2. Access Rights

The biggest threat to your business is from external sources. But does that mean there are no potential in-house risks? Well, the answer is no.

Giving full access rights to all your employees is a recipe for disaster and a major threat to ERP security.

Instead, you should analyze and then only give access to data. For instance, a software developer does not need access to employee salary information.

Besides, you also need to look into which employees have permission to make changes to the system. Access rights and permissions are dependent on departmental needs and should be granted accordingly.

How To Prevent It?

To prevent data thefts and frauds, you must maintain audit logs to track changes. You can also choose to add “authorization” for new hires, promotions, or any role change in documentation. This means any changes would need the consent of the administrator.

Looking for ERP Software? Check out SoftwareSuggest’s list of the best ERP system solutions.

3. Lack of Training

Now that you know that internal sources pose significant risks let us understand them in more detail.

The system may be at risk due to a lack of understanding among your resources.

This may cause issues around the ERP system as a whole. It also could be due to limited knowledge of what is expected by the organization in terms of security.

So, what kind of employees come under this bracket?

Well, such issues are common with new hires. They require time to get familiar with internal processes.

While you may decide to consider them as “innocent mistakes,” it leaves your business vulnerable to security risks.

How to Prevent It?

To avoid such instances, you can always request your ERP provider to train new hires. This will ensure that your business protocols are followed and are easily accessible to all employees.

4. Compliance Issues

Do you use your ERP system to store confidential sales information and personal details? 

Well, then, your system must meet local security standards. This includes Payment Card Industry Data Security Standard (PCI DSS) requirements if credit card data is involved. 

You need to ensure that details in the sales system are stored in encrypted form only without retaining the 3-digit security code. 

Besides, you will also need to maintain secure passwords, restrict access, and track access to the data you keep. Furthermore, complying with regulations within your sector is a must.

This might be a lot to process, but in the long run, the situation may worsen and even lead to shutting down your business.

How to Prevent It?

Unlike the issues discussed above, the solution is very simple! All you need to do is choose an ERP database designed to comply with necessary regulations. Moreover, make sure you change your vendor-issued password and adhere to good security practices at all times.

5. Use of Unauthorised Systems

Now that you have a fair idea of ERP security issues, let us understand the concept behind the tool’s integration. The whole point is to eliminate the need for multiple software programs required to fulfill business goals. 

For instance, you might be maintaining sales data on an ERP but still making reports using Excel. 

Unfortunately, many businesses still use multiple programs to fulfill their daily tasks. This is because they are familiar with these tools, and they are easy to use. 

But, this means that the same data could exist within several programs. It is also possible that it is not adequately maintained, updated, or secure. 

How to Prevent It? 

First, you need to analyze if you need to export data or not. Secondly, if your ERP system is not fulfilling your objectives, you need to consider investing in a new system.

6. Automatic Trust 

When we talk about cloud storage, it is important to understand that your data is not stored locally. But, it is stored by a third-party cloud hosting service

There are some advantages of having a cloud ERP like less work for your IT department, reduced costs and time, and less pressure on your internal networks.

However, there is a major drawback too. Well, you have to be willing to place 100% of your ERP security into someone else’s hand. 

How to Prevent It? 

Well, to gain peace of mind, you need to think thrice before selecting your cloud provider. Pay attention to their security processes and their data regulations. Also, talk to your friends and colleagues, read reviews and take demos from vendors to be completely sure.

7. Single Authentication

As ERP systems have evolved, they can not only handle a much wider range of information but also more sensitive information.

While single authentication passwords are standard, are they enough for modern ERP systems?

Well, password cracking is one of the most common forms of hacking. This means you cannot secure your confidential business data with a single password alone. It can easily be stolen or guessed by experts.

How to Prevent It?

Well, the obvious solution is two-factor authentication (2FA). Moreover, you no longer require a physical device to install it. All you need is a code that can be sent to an email address.

While there are several security factors to consider when implementing a new ERP system, the advantages outweigh the concerns.

By maintaining a safe and secure ERP system, you can ensure high data consistency levels and provide peace of mind to your staff and clients.

Did we miss out on any ERP security issues? Let us know your opinions in the comments below!

Supriya Saxena
A logophile by heart, Supriya loves to research and write about the latest technology and trends. She believes that writing is the best medium to influence people in a positive way and has 3+ years of writing experience.

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