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Important Notice: New Procedures in Place to Protect from Fraudulent Direct Deposit Requests

Posted by Admin Posted on Mar 28 2022

Important Notice: New Procedures in Place to Protect from Fraudulent Direct Deposit Requests

We would like all payroll processors to send the signed Authorization forms for direct deposits with any banking changes for your employees.

Although there is no cure-all to prevent fraud in your business, we would like to help you by instituting some fraud prevention strategies.

We receive warnings from our bank monthly to watch out for fraud.

One example: the employer receives an email from the employee directing them to change their direct deposit to a different account, most often a pay card. The defrauder has hacked the employee email and directed the employer to give them the funds, which they draw out of the fraudulent account on pay day. The bank says this type of fraud is so rampant and so hard to trace.

The bank recommends that you do not accept banking changes from employees through email. We would like to encourage that you personally talk to any employee that needs to make a bank change and have them fill out the Authorization form. (Please contact us if you need an updated form.)

We would also like to be able to track any payroll changes more easily. So if you have banking changes, please send them with entire payroll info on payroll processing day. This would be helpful in letting us know that you are aware of all banking changes being made for your employees.

If you are a client that puts in your own employee information, we strongly suggest that you also have each employee fill out the Authorization form, and do not accept emailed changes to banking info.

Thank you and please let us know if you have any questions.

If you have any questions, please contact Veronica, our payroll partner with Abacus.

Veronica Ramsey, Manager of Abacus PaySystems



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