How to Protect Your Business from Phishing Emails Posing as Employees

Payroll fraud is a serious and growing threat, with cybercriminals continuously finding new ways to exploit businesses. One of the most common tactics is phishing emails that pose as employees, attempting to steal sensitive information, particularly direct deposit details. These fraudulent requests can seem legitimate, but the consequences for falling victim to one can be devastating for both businesses and employees.

Here’s what you need to know to protect your company from these dangerous scams.

The Rising Threat of Phishing Emails in Payroll

Phishing emails are deceptive messages that appear to come from trusted sources, such as employees or colleagues. In the case of payroll fraud, cybercriminals are increasingly sending fake requests to payroll departments, asking for changes to employees’ direct deposit information. These changes, if unverified, result in the redirection of employees’ salaries to fraudulent accounts.

These emails are often carefully crafted to look convincing, but there are telltale signs you can look for to avoid being duped.

Warning Signs of Payroll Phishing Scams

1. Unexpected Requests: If an employee suddenly asks to change their direct deposit details without prior notice, be cautious. It’s always worth double-checking with the employee, especially if the request seems out of character.
2. Email Anomalies: Pay close attention to the email address and the tone of the message. Phishing emails often come from addresses that look similar to official company emails but contain slight differences. For example, a missing letter or extra character can be a red flag. Also, be wary if the tone of the email feels off, such as being overly formal or informal.
3. Urgent or Emotional Language: Scammers thrive on creating a sense of urgency. They might claim that the direct deposit change is needed immediately or stress that the issue is highly important. This pressure tactic is designed to make you act quickly without thoroughly verifying the request.

How to Protect Your Business and Employees

With payroll fraud on the rise, it’s crucial to implement preventive measures to safeguard your organization. Here are some practical steps to reduce your risk:

1. Always Verify Direct Deposit Changes: Any request to update an employee’s direct deposit information should be confirmed directly with the employee. This can be done by calling them using a known phone number or speaking with them in person. Avoid relying solely on email communication for sensitive changes.
2. Use Multi-Step Verification: Implement a multi-step verification process for all changes to payroll or sensitive account information. This could include a secondary sign-off from another team member or manager to ensure the request is legitimate.
3. Educate Your Team: Regularly train your payroll staff and employees on phishing tactics. Teach them how to identify suspicious emails, what red flags to look for, and how to report them. Awareness is one of the most effective tools in preventing payroll fraud.

Stay Vigilant to Protect Your Business

Payroll fraud can be costly and disruptive, but by staying alert and implementing strong security protocols, you can protect both your business and employees. Keep an eye out for the warning signs of phishing emails, and always take extra precautions when handling sensitive payroll information.

At Applied Payroll Solutions, we understand the importance of protecting your business from cyber threats. We’re here to help you create secure payroll processes that ensure your employees get paid safely and on time. Stay safe, stay alert, and let’s work together to prevent payroll fraud.