A payroll scam is a fraudulent scheme in which scammers manipulate payroll systems to steal money from businesses or deceive employees into providing sensitive information. These scams can occur in various ways, including impersonating employees to receive unauthorized payments or creating fictitious employees, also known as "ghost employees," who are added to the payroll and receive paychecks for work that was never done.
In many cases, scammers may use social engineering tactics to exploit the trust between payroll departments and employees. They might impersonate actual employees, claiming to have changed their banking information or requesting adjustments to their salary. These scams can result in significant financial losses for businesses and create complications in managing payroll records.
To protect against payroll scams, businesses should implement stringent verification processes for payroll changes, conduct regular audits of payroll records, and provide training to employees about recognizing suspicious requests. Ensuring that payroll staff are aware of these scams is essential for safeguarding company finances and maintaining employee trust.