The FBI’s Internet Crime Complaint Center has reported a significant rise in Business Email Compromise (BEC) fraud, both in the U.S. and internationally. Statistics reveal that cybercriminals have increasingly targeted businesses through phishing emails, leading to billions of dollars in losses worldwide.
“We’ve observed a notable increase in email fraud in recent years,” states John Feaman, president of IPS. “More companies, including ours, are encountering these scam emails, but we are trained to handle them effectively.”
A common scam involves attackers sending emails to multiple employees, directing them to a fake login page for their email provider. Once employees enter their credentials, the cybercriminals can use this information to request direct deposit changes that seem legitimate. As a result, employees’ paychecks are diverted to the criminal’s account, often transferred to prepaid cards.
“It’s crucial for companies to verify the authenticity of any email request,” emphasizes Feaman. “This can be done by confirming changes with the employee in person. If an employee becomes a victim of such a scam, it jeopardizes the integrity of your payroll system. Our team is trained to implement stringent protocols for any direct deposit or payroll changes we process.”
Additionally, employees should be encouraged to regularly review their personal financial accounts for missing payments or any inconsistencies.
For further information on effective strategies to combat payroll fraud, please contact your IPS representative.