Protect Yourself from Payroll Scams
Unfortunately, there are some very dishonest people out there and they use various scams to defraud people from their money, so here’s a few things to consider to help protect yourself from payroll scams.
Computerised banking systems are very difficult to defraud so the most common methods are via communications.
Common payroll scams:
- Be careful of any correspondence by email requesting payments to a different bank account. When checking, do not reply, either speak to the person directly or forward to your known email address. Also watch out for an urgent request, typos, and unfamiliar email addresses
- Scammers can pose as employees over the phone. Always ask staff to confirm any requests in writing through your known communication channels, again checking they match those you hold on record
- Fake payroll companies. Be cautious of companies offering cheap rates or of being affiliated with trusted organisations. If it sounds too good to be true, it usually is
Prevention is key.
- Remain calm under pressure. Scammers often use a sense of emotional urgency to requests
- Implement internal procedures such as payments requiring multiple approvals
- Always verify changes through established communication channels
- Partner with a reputable payroll provider with a proven track record
If you fall victim to fraud, you should report it to your bank and the authorities. Whilst you may not get your money back, making the bank aware will work against fraudsters and hopefully prevent others from falling victim.