In addition to the risk of internal fraud, most employers are aware that external cyberattacks are on the rise and can manifest in a variety of ways. The most common and costly type of cybercrime is payroll phishing, which aims to coerce employees (particularly payroll staff) into providing sensitive company or employee information, especially information related to login credentials and bank accounts. Although the methods cybercriminals use to infiltrate payroll systems can be convincing and sophisticated, there are a number of steps you and your employees can take to protect your company, minimize the risk of an incident, and respond promptly should an incident occur.
In this article, we’ll explore some of the most common scams used by cybercriminals, and offer best practices on how to spot them and safeguard your company against cyberattacks.
Although the “end goal” of phishing scams can vary, in most cases cybercriminals aim to gain access to direct deposit details so that deposits will be made to an account that is in the cybercriminal’s control. Cybercriminals also initiate scams to do the following:
Most cybercriminals capitalize on business email compromise (BEC) to successfully gather sensitive information from a company employee or payroll manager. They often begin by illegally hacking a business’ email domain (an easier step to accomplish if the company doesn’t use multi-factor authentication). Often using a “look-alike” email account associated with an actual employee, they send an email to a payroll manager, HR employee, or another relevant staff member requesting a payroll change to ensure that a payment is directed into the correct account (one that the cybercriminal controls). The cybercriminal will likely use social engineering tactics to create a sense of urgency, concern, or guilt on the part of the recipient, whether it’s suggesting that a late payment will impact their financial well-being or otherwise. If the recipient changes any payroll details as requested, funds will be sent to the account controlled by the cybercriminal and the entire payroll system is subsequently exposed to the threat.
In another common scam, a cybercriminal sends an email to an employee (from the business’ email domain), requesting a needed e-signature or answers to business-related survey questions. Usually, the recipient is directed to click a link and, upon redirection, is prompted to verify their identity by entering their login credentials. Sometimes the recipient is asked to provide an updated password as well as their existing login credentials. In either case, if the credentials are secured, the cybercriminal can then gain access to the company’s payroll system, acquire more information, change account information, redirect direct deposits to their own controlled account(s), and even repeat the process with other employees.
Whether your business has already experienced a payroll phishing scam or you’d like to protect your business and employees against potential threats in the future, there are a number of proven measures you can take:
Cybercriminals are constantly updating their methods to execute payroll phishing scams that cause large financial losses and reputational damage to businesses of all sizes. The Orsus Group offers comprehensive HR consulting that keeps your business protected, your information safe, and your policies and training in alignment with your security and privacy goals. To complement our services, our partner company, Cello HR offers an intuitive, encrypted, and employee-friendly payroll platform that mitigates the risk of cyberattacks while keeping your payroll timely and efficient for your employees.
Contact us today to enjoy secure and streamlined payroll that keeps your business and employees safe.