If one thing stays consistent, it is that fraud occurs daily, but what changes from year to year is how cybercriminals are tricking people into falling for their scam. It is extremely important to be educated on what fraud looks like and what to do if it happens to you.
Here are five payroll focused scams, you need to know:
1. Fake Emails
Scammers send emails that look like they’re from your payroll provider. They may ask you to “verify” login details or update employee information. Once you click the link and enter your info, they steal your credentials.
2. CEO or Manager Impersonation
Also known as “business email compromise.” A scammer pretends to be a company executive and urgently asks payroll to send employee W-2s or process a payment.
Because it feels urgent and authoritative, people often comply without double-checking.
3. Social Engineering Phone Calls
A scammer calls pretending to be from IT or the payroll company. They may ask for login credentials or request that you “reset” access for them.
4. Fake Vendors or Invoices
Scammers pose as a vendor or benefits provider and send fake invoices. They request payment changes or new banking details, diverting funds.
5. Fake Tax Agency Messages
Scammers pose as the IRS or state tax agencies. They may demand immediate payment for “missed payroll taxes” or threaten penalties. These messages often create panic to push quick action.
Although these scams may seem legit, it never hurts to confirm that these messages are real.
3 Tips to Confirm if the Messages You are Receiving are Real:
1. Double-Check the Senders email
Look closely at the email address the message is sent from. Scammers will often use addresses that look very similar to the real ones, but have misspellings, extra letters, or random characters.
2. DON’T CLICK
Rather than clicking on the link in the message sent, go straight to your payroll providers website or app and continue from there.
3. Look For Errors or Odd Formatting
Many messages that scammers send include common spelling errors, weird formatting, or using generic greetings like “Dear Customer”. They may even have unusual requests like asking for your log-in credentials, W-2 forms, or other sensitive data.
If you still are not sure, you can always call your payroll provider and confirm that they sent the message and need information from you.
When it comes to your account, it is important to slow down and verify what is being asked of you to stay safe and prevent fraud.