How to Protect Employees’ Payroll Funds

Don’t Let Payroll Scams Put Your Business at Risk

Payroll fraud attempts are becoming increasingly sophisticated. These schemes often disguise themselves as legitimate requests, making them difficult to detect until after the damage is done. By understanding how these scams work and implementing proactive security measures, you can better protect your employees’ payroll funds.

One of the most common schemes is the prepaid debit card scam, wherein fraudsters impersonate employees and request changes to direct deposit accounts. If the change is processed without proper verification, paychecks may be rerouted to fraudulent accounts – resulting in losses for employees and your organization.

How to Stay Ahead of the Hacker

• Educate your team: Provide regular training to help employees recognize phishing attempts and other common scams. Always emphasize the importance of safeguarding payroll and personal information.
• Verify every change: We recommend verbally confirming all direct deposit change requests, regardless of whether they come from a business or personal email account. However, treat requests from personal email addresses (e.g., Gmail, Hotmail) as higher risk and apply extra scrutiny when verifying.
• Use trusted contact info: When confirming a payroll-related change, call the employee using the phone number you already have on file – not the phone number provided in the request email.
• Confirm in person or by phone: Avoid relying solely on email. Whenever possible, speak directly with the employee, either face-to-face or by phone.

Important Reminder: Fraud can originate from either external or internal sources. Vigilance is key. If you discover that a payroll deposit has been misdirected, please notify us immediately to make us aware of the situation.

Other Key Considerations

• Prepaid debit cards are not always fraudulent, but they are often used in scams as they make funds harder to trace.
• Once money is deposited into a fraudulent card, it is usually withdrawn immediately – making recovery highly unlikely.

Many prepaid card issuers do not provide live customer support, making recovery attempts slow and rarely successful.

Strengthen Payroll Protections with CBIZ

Payroll fraud doesn’t just impact employees – it can disrupt your operations, harm trust, and create lasting financial consequences. The best defense is a proactive strategy that combines employee education, strong verification practices, and expert guidance.

At CBIZ, we help organizations safeguard payroll processes, reduce vulnerabilities, and respond quickly when issues arise. Our team stays ahead of emerging threats, so you can focus on running your business with confidence.

Ready to strengthen your payroll protections? Contact CBIZ today to learn how our team can help keep your employees’ pay – and your business – secure.