We want to make you aware of an alarming trend. Recently, a few clients have fallen victim to payroll fraud, particularly direct deposit scams.
In most cases, a cybercriminal, posing as an employee, sends an email to the employer’s HR or payroll department requesting an update to their direct deposit. The email provides new bank routing and an account number that is under the control of the criminal. Many times, the employer and employee do not realize fraud has taken place until it is too late, and the payroll cannot be recovered.
To avoid being held liable for misdirected funds, we recommend utilizing the “New Employee and Change Audit” report located in your payroll preview library before processing every payroll. This will alert you to any changes made since you last processed payroll.
Here are other best practices to protect yourself:
- Verify the legitimacy of all direct deposit requests
- Be wary of requests to change direct deposits to a Green Dot account
- Know the warning signs of phishing – inaccurate email addresses, grammar and spelling errors, a sense of urgency, unusual tone, or missing email signature
If you believe you have fallen victim to fraud, contact us immediately