Direct Deposit Scams

What to look out for

In most cases of employee direct deposit fraud, fictitious instructions are sent via email to a company's Human Resources Department, with the sender purporting to be a company employee. The email requests that future direct deposits (or a portion of future direct deposits) be sent to a new bank. In many cases, the sender and content of the email appear legitimate. Once the funds are routed to the scammer's account, the company is on the hook for replacing the stolen funds and the employee faces a late paycheck. Most scammers pretend to be high level employees and are typically very brief, polite and slightly urgent. Most of the time they will also ask for this information to be changed before the next paycheck.

Tell tale signals that the email may be illegitimate:

  • Misspellings
  • Grammatical Errors
  • A heightened sense of urgency
  • Request for personal identifiable information
  • Threats with consequences

What to do if you receive a direct deposit request via email

Verify all direct deposit requests by phone before processing any changes. A quick phone call using an internal extension or the phone number you have on file (not the phone number provided in the email) can help you avoid a financial loss. Some companies require that all direct deposit changes must be performed in writing and in person.

What to do if you think you have been scammed

If you think you have been the victim of employee direct deposit fraud, notify your payroll company and contact us immediately at 413.568.1911 or 800.995.5734 We also recommend contacting your police department to file a report.