Cybersecurity in ERP Systems: Risks and Best Practices

Byamitysoft

ERP systems serve as the central nervous system of today’s businesses, coordinating critical operations across businesses. They connect everything from finance and HR to supply chain, manufacturing and customer service. 

Cybersecurity in ERP system isn’t just a technical checkbox anymore—it’s a serious concern that can make or break a company’s operations and reputation.

cyber security in erp

Why ERP Systems Are a Prime Target

Think about all the data your ERP system holds—financial records, employee information, contracts, inventory levels, customer details. That’s exactly why ERP systems are such a juicy target for hackers.

The challenge? ERP platforms are often sprawling, complex, and tightly woven into a company’s daily operations. One small misconfiguration, outdated plugin, or weak password can be all it takes for a breach.

The Risks Are Real (and Often Overlooked)

Here are some of the most common security pitfalls in ERP systems:

Loose access controls – When everyone has admin-level access or old employee accounts are never deactivated, the risk multiplies.

Phishing attacks – These may not seem ERP-specific, but compromised credentials can lead directly into your core systems.

Unpatched vulnerabilities – Legacy systems, especially on-premise ERPs, don’t always get the updates they need.

Risky integrations – Every plugin or third-party system connected to your ERP is a potential door for attackers.

Lack of visibility – If you’re not tracking who’s doing what in your ERP, how will you catch suspicious behavior?

Practical Tips to Secure Your ERP

Now let’s talk about what actually works. These aren’t theoretical best practices—they’re grounded in what IT teams do every day to reduce risk.

  1. Limit Access to What’s Needed

It sounds obvious, but many companies overlook this. Use role-based permissions, audit them regularly, and make sure no one has more access than they need.

  1. Stay on Top of Updates

No one loves patching systems, but ignoring it is a gamble. Work with your ERP vendor to ensure you’re applying security patches and updates promptly.

  1. Use Multi-Factor Authentication

Yes, it’s a hassle sometimes. But MFA can stop a stolen password from becoming a full-blown breach. 

  1. Encrypt Everything

Ensure that data is encrypted, whether it’s being stored or transmitted. This isn’t optional anymore—it’s the baseline for any modern security strategy.

  1. Watch What’s Happening

Set up logs and alerts for critical actions—especially around financial data, user permissions, and system configuration changes. Don’t wait until something goes wrong to investigate.

  1. Train Your Team

ERP users might not be tech experts, but they still need to know how to spot phishing attempts and avoid careless mistakes. 

  1. Decide on your Deployment Model

Deciding whether to host an ERP system on-premises, in the cloud, or via a hybrid approach is a critical security consideration. 

Maintaining comprehensive security controls on-premises requires significant resources and expertise, making it a viable option primarily for large organizations with dedicated security teams. In contrast, reputable cloud providers often deploy advanced security measures at scale, ensuring robust protection and compliance.

A well-chosen cloud provider can offer contractual commitments on Confidentiality, Integrity, and Availability (CIA), reducing the burden on organizations while ensuring a secure and resilient ERP environment.

Don’t Forget Compliance

If your company is subject to regulations like GDPR, HIPAA, or SOX, keeping your ERP secure isn’t just good practice—it’s a legal necessity. These rules are strict, and violations can get expensive fast.

Conclusion

ERP systems are powerful tools, but with great power comes great responsibility. Securing them takes more than just good software—it takes solid processes, watchful IT teams, and a commitment across the company to treat cybersecurity seriously.

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