Direct Deposit Scams? – How APlus Stopped a Fraud in Its Tracks

When it comes to payroll fraud, even the smallest oversight can lead to significant financial losses for a business. Thanks to the vigilance and expertise of Shaila, a Client Support Specialist at APlus Payroll, one company narrowly avoided falling victim to a direct deposit fraud attempt. This real-life incident not only highlights the risks businesses face but also showcases how the proactive processes at APlus Payroll help safeguard against such costly scenarios.

The Fraud Attempt

It all started with an email—seemingly routine but actually laden with red flags. Posing as an employee, a scammer sent an email requesting an update to their direct deposit account information. The scam was sophisticated enough to involve a manager replying to the original email, making the request appear even more legitimate.

However, when the request reached Shaila, she applied APlus’s multi-layered protection process. She noted that while it was unusual for all the pieces to come together in one message, this was precisely why the company’s safeguards existed. Instead of finalizing the payroll with the account change, she followed protocol, running the “Master Data Change Report”—an internal report containing direct deposit changes, and cross-checking routing numbers against the pay card routing number list. She then requested the client get verbal authorization from the employee, and the client learned it was not the employee who sent the email.  Shaila’s diligence uncovered this attempted fraud, putting a stop to it before any unauthorized changes were made.

APlus Proprietary Protection Process

This catch underscores the importance of having robust procedures in place to guard against payroll fraud. At APlus, the process doesn’t end with one check. The company employs multiple layers of verification to ensure accuracy and security, including:

• Verbal Verification Policy: Any changes involving a pay card routing number must be verbally verified with the client before the first direct deposit is processed.
• Master Data Change Report: This exclusive comprehensive report tracks all changes made during the pay period of the payroll we are processing. We can filter the report to show all direct deposit updates, including the routing numbers used. We can then compare this list with our pay card routing numbers to identify any changes that require verification.
• Mandatory Update Notifications: For legitimate pay card changes, team members must notify a designated team member to ensure that each update is double-checked by an additional set of eyes. When they submit the direct deposit file, all pay card routing numbers will be flagged by our processing company and we will verify that all changes have been properly accounted for and confirmed as legitimate.

Through these carefully designed steps, APlus not only caught the fraud attempt but reinforced why their approach is so effective at protecting businesses.

Why This Matters for Your Business

Direct deposit fraud is just one of the many potential pitfalls that companies are vulnerable to when managing payroll internally. Without safeguards like dedicated reporting, routine cross-checks, and multi-stage approval processes, such schemes can easily slip through the cracks. The financial implications are staggering—not just in terms of lost funds but also in restoring employee trust and repairing the damage to internal workflows.

This is why outsourcing payroll to experts like APlus is more than a convenience—it’s a necessity. Companies that manage payroll in-house may lack the specialized tools and processes needed to sniff out threats like email phishing or account diversion scams.

By entrusting payroll to professionals, businesses benefit from enhanced security, operational efficiency, and peace of mind. APlus’s proactive fraud prevention measures, demonstrated in Shaila’s case, prove that outsourcing isn’t just about shifting responsibilities—it’s about gaining a partner committed to your financial protection.

A Wake-Up Call for Business Leaders

This incident serves as a reminder of the real-world risks every business faces when managing payroll. It’s not just large corporations that scammers target—small and mid-sized companies can be equally vulnerable due to limited resources or expertise in fraud prevention. However, with APlus, you can rest easier knowing your payroll operations are managed with the precision and care they demand.

Take Action Today

We are often asked “Will APlus save me money?” As in this case, we won’t just save you money, but potentially your reputation as an employer as well.  Consider outsourcing your payroll needs to APlus and learn how we can protect your company from fraud and deliver efficient payroll solutions tailored to you and your Company. Contact us today.