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How Identity Protection for Your Employees Can Reduce Your Data Breach Risk

Published: January 28, 2025 by Stefani Wendel

As data breaches become an ever-growing threat to businesses, the role of employees in maintaining cybersecurity has never been more critical. Did you know that 82% of data breaches involve the human element1 , such as phishing, stolen credentials, or social engineering tactics? These statistics reveal a direct connection between employee identity theft and business vulnerabilities.

In this blog, we’ll explore why protecting your employees’ identities is essential to reducing data breach risk, how employee-focused identity protection programs, and specifically employee identity protection, improve both cybersecurity and employee engagement, and how businesses can implement comprehensive solutions to safeguard sensitive data and enhance overall workforce well-being.

The Rising Challenge: Data Breaches and Employee Identity Theft

The past few years have seen an exponential rise in data breaches. According to the Identity Theft Resource Center, there were 1,571 data compromises in the first half of 2024, impacting more than 1.1 billion individuals – a 490% increase year over year2. A staggering proportion of these breaches originated from compromised employee credentials or phishing attacks.

The Link Between Employee Identity Theft and Cybersecurity Risks

  1. Phishing and Social Engineering
    Phishing attacks remain one of the top strategies used by cybercriminals. These attacks often target employees by exploiting personal information stolen through identity theft. For example, a cybercriminal who gains access to an employee’s compromised email or social accounts can use this information to craft realistic phishing messages, tricking them into divulging sensitive company credentials.
  2. Compromised Credentials as Entry Points
    Compromised employee credentials were responsible for 16% of breaches and were the costliest attack vector, averaging $4.5 million per breach3. When an employee’s identity is stolen, it can give hackers a direct line to your company’s network, jeopardizing sensitive data and infrastructure.
  3. The Cost of Downtime
    Beyond the financial impact, data breaches disrupt operations, erode customer trust, and harm your brand. For businesses, the average downtime from a breach can last several weeks – time that could otherwise be spent growing revenue and serving clients.

Why Businesses Need to Prioritize Employee Identity Protection

Protecting employee identities isn’t just a personal benefit – it’s a strategic business decision. Here are three reasons why identity protection for employees is essential to your cybersecurity strategy:

1. Mitigate Human Risk in Cybersecurity

Employee mistakes, often resulting from phishing scams or misuse of credentials, are a leading cause of breaches. By equipping employees with identity protection services, businesses can significantly reduce the likelihood of stolen information being exploited by fraudsters and cybercriminals.

2. Boost Employee Engagement and Financial Wellness

Providing identity protection as part of an employee benefits package signals that you value your workforce’s security and well-being. Beyond cybersecurity, offering such protections can enhance employee loyalty, reduce stress, and improve productivity. Employers who pair identity protection with financial wellness tools can empower employees to monitor their credit, secure their finances, and protect against fraud, all of which contribute to a more engaged workforce.

3. Enhance Your Brand Reputation

A company’s cybersecurity practices are increasingly scrutinized by customers, stakeholders, and regulators. When you demonstrate that you prioritize not just protecting your business, but also safeguarding your employees’ identities, you position your brand as a leader in security and trustworthiness.

Practical Strategies to Protect Employee Identities and Reduce Data Breach Risk

How can businesses take actionable steps to mitigate risks and protect their employees? Here are some best practices:

Offer Comprehensive Identity Protection Solutions

A robust identity protection program should include:

  • Real-time monitoring for identity theft
  • Alerts for suspicious activity on personal accounts
  • Data and device protection to protect personal information and devices from identity theft, hacking and other online threats
  • Fraud resolution services for affected employees
  • Credit monitoring and financial wellness tools

Leading providers like Experian offer customizable employee benefits packages that provide proactive identity protection, empowering employees to detect and resolve potential risks before they escalate.

Invest in Employee Education and Training

Cybersecurity is only as strong as your least-informed employee. Provide regular training sessions and provide resources to help employees recognize phishing scams, understand the importance of password hygiene, and learn how to avoid oversharing personal data online.

Implement Multi-Factor Authentication (MFA)

MFA adds an extra layer of security, requiring employees to verify their identity using multiple credentials before accessing sensitive systems. This can drastically reduce the risk of compromised credentials being misused.

Partner with a Trusted Identity Protection Provider

Experian’s suite of employee benefits solutions combines identity protection with financial wellness tools, helping your employees stay secure while also boosting their financial confidence. Only Experian can offer these integrated solutions with unparalleled expertise in both identity protection and credit monitoring.

Conclusion: Identity Protection is the Cornerstone of Cybersecurity

The rising tide of data breaches means that businesses can no longer afford to overlook the role of employee identity in cybersecurity. By prioritizing identity protection for employees, organizations can reduce the risk of costly breaches and also create a safer, more engaged, and financially secure workforce.

Ready to protect your employees and your business?

Take the next step toward safeguarding your company’s future. Learn more about Experian’s employee benefits solutions to see how identity protection and financial wellness tools can transform your workplace security and employee engagement.


1 2024 Experian Data Breach Response Guide

2 Identity Theft Resource Center. H1 2024 Data Breach Analysis

3 2023 IBM Cost of a Data Breach Report


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