In April 2025, Marks & Spencer (M&S), a prominent UK retailer, experienced a significant cyberattack attributed to the hacking group Scattered Spider. The breach disrupted online orders, contactless payments, and supply chain operations, leading to an estimated £300 million impact on operating profits. Customer data was compromised, and the company’s market value decreased by over £1 billion.
This incident underscores the critical importance of robust ERP data protection measures in today’s digital landscape. ERP systems, serving as the backbone of business operations, must be safeguarded against evolving cyber threats to prevent such substantial financial and reputational damages.
In this post, we explore the best practices for ERP data protection in 2025 to help businesses minimise risk and maintain trust.
Why ERP Data Protection Is Non-Negotiable in 2025
ERP systems are prime targets for cybercriminals. They serve as digital command centres, linking accounting, sales, procurement, HR, and other functions. If compromised, attackers can gain access to everything from payroll records to trade secrets.
With the General Data Protection Regulation (GDPR) and other regional compliance standards tightening, failing to protect ERP data can result in hefty penalties and operational chaos. As ERP systems increasingly move to the cloud and enable remote access, companies must elevate their security strategies.
Let’s dive into the top 10 best practices for ERP data protection in 2025.
1. Conduct Regular Risk Assessments
A proactive approach to data security starts with understanding where the risks lie. Carry out frequent risk assessments on your ERP infrastructure, integrations, and user access. Identify weak points—whether it’s outdated modules, poorly configured user roles, or unsupported third-party plug-ins.
These assessments should include both technical and human risk factors. Document findings and take corrective action promptly.
2. Implement Role-Based Access Control (RBAC)
One of the simplest ways to improve ERP security is by ensuring staff only access what they need. RBAC helps limit exposure by assigning permissions based on job responsibilities.
For example, an HR manager shouldn’t have access to financial reporting tools, and vice versa. This reduces accidental data leaks and strengthens accountability.
3. Use Strong Encryption Standards
Data in your ERP should always be encrypted—whether it’s sitting in storage or moving across networks. Aim for AES-256 encryption or higher to protect sensitive details.
Don’t forget about backups. Ensure your backup files are encrypted and stored separately, preferably offsite or in the cloud with strict access policies.
4. Enforce Multi-Factor Authentication (MFA)
Passwords alone are not enough. Enforcing MFA adds a crucial layer of protection by requiring users to verify their identity in more than one way.
Modern ERP systems allow for seamless MFA integration, often via mobile apps or biometric recognition. This simple step can deter most brute-force and phishing attacks.
5. Keep Software and Patches Up-to-Date
Cyber attackers frequently exploit known software vulnerabilities. Regularly update your ERP software and its associated plugins. Automate patching where possible to eliminate delays.
If your ERP vendor issues security bulletins, subscribe to them and apply updates as soon as they are released.
6. Monitor System Activity in Real-Time
Anomalies in system activity often signal a breach. Use monitoring tools or SIEM (Security Information and Event Management) platforms to track logins, data access, and changes in user behaviour.
Flag unusual patterns, such as an employee accessing the system at odd hours or exporting large datasets without authorisation. Early detection is key.
7. Back Up ERP Data Regularly
Having no backup is as dangerous as having no security. Implement both full and incremental backup strategies. Store backups in multiple locations, including offline and secure cloud environments.
Regularly test your recovery process. A backup is only valuable if it works when you need it most.
8. Train Employees on Data Security
Human error remains one of the biggest risks to ERP data. Staff should understand their roles in protecting business data. Offer regular training on topics like password hygiene, phishing recognition, and secure data handling.
Include ERP-specific scenarios so users are aware of how their behaviour impacts system security.
9. Secure APIs and Third-Party Integrations
ERP systems often rely on APIs to connect with other tools like CRMs, payroll software, or e-commerce platforms. Each connection can introduce vulnerabilities if not secured.
Use encrypted API gateways, enforce access controls, and only integrate with vendors who follow strong security protocols.
10. Develop and Test an Incident Response Plan
Even with all precautions, breaches can still happen. An incident response plan outlines what to do when they do. Define clear steps for identifying, containing, and reporting breaches.
Assign roles in advance and simulate scenarios to test readiness. Being prepared can significantly reduce downtime and reputational damage.
How PurpleDove ERP Supports Best Practices for ERP Data Protection
Security shouldn’t be an afterthought—and PurpleDove ERP makes it a priority. Designed with small and medium-sized businesses in mind, it integrates several of these best practices by default. With built-in role-based access, encrypted data handling, and other robust security structures, PurpleDove helps organisations follow best practices for ERP data protection without needing a large IT team.
Its user-friendly interface encourages proper use while its secure architecture keeps your business data safe.
Conclusion
The stakes for ERP data protection in 2025 are higher than ever. Cyber threats are growing in complexity, and regulatory requirements are becoming stricter. Businesses that fail to adapt may not survive the consequences of a serious breach.
By following these best practices for ERP data protection, companies can strengthen their defences and build trust with customers and partners. Whether you’re upgrading your ERP or reviewing your current setup, make security a central part of the conversation.