Storing employee pay stubs or any other kind of personal or sensitive information online or through cloud storage systems always carries a certain level of risk. While many organizations claim that their encryption offers protection from third party intrusions, there are few ways to guarantee that information is always safe.
One of the largest safety issues with online cloud storage is the fact that many of the storage systems are proprietary, and thus not open to outside evaluation or explanations of service functions. For example, if a company develops a cloud-based system for tracking and storing employee pay stubs through proprietary methods, no one other than that company can substantiate any claims made about the system's security. This drastically differs from open source technology, in which all details and information regarding the function and inner workings of the systems are freely available for anyone to review.
Another issue is that many individuals who store information in the cloud through personal accounts, even where these are part of a larger system, often do not take proper measures to protect individual login details. Actions such as choosing a password based on easily identifiable information, such as a birthday or pets name, make the account more vulnerable to hacking.