Curbing payroll diversion fraud

According to the FBI’s Internet Crime Center, Business Email Compromise (BEC) fraud is much more common and gaining ground in the U.S. and abroad. Statistics show that in the past three years, businesses targeted by cyber criminals with phishing emails gained access to secure information with losses totaling more than $30,000,000 worldwide.

“We have seen a significant increase in this type of email fraud in the last couple of years,” says John Feaman, IPS president. “More companies are receiving these scam emails – including us – but we are trained to manage it.”

One example of a scam is where attackers email multiple employees with a fake login page for an email host. This allows cyber criminals to use credentials and send direct deposit change requests that appear to be legitimate. The victims’ paycheck is then diverted to a criminal’s account and the money transferred to a prepaid card.

“Companies must make sure an email is authentic by contacting the worker in person to confirm there’s been a requested change,” adds Feaman. “If an employee falls victim to a scam, your payroll portal is in jeopardy. Our team is equipped to implement strict procedures for any customer’s direct deposit or off-run payroll changes that we would be making to their system.”

It’s also a good idea to remind employees to check their personal financial accounts on a regular basis. They should look for missing payments or any other potential discrepancies.

For more information on solutions to ward off payroll fraud, contact your IPS representative.

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