The holiday season is a time of joy, but for payroll and HR professionals, it’s also a peak season for fraud attempts. From phishing emails to bank scams, malicious actors ramp up their efforts to exploit the festive spirit, often targeting payroll systems and employee accounts. Here’s a look at common holiday scams, how to recognize them, and steps your team can take to secure your company’s payroll and HR operations.
1. Recognize the Most Common Holiday Scams
During the holidays, fraudsters often disguise malicious emails and messages as holiday greetings, charitable appeals, or urgent payroll updates. These scams may include:
- Direct Deposit Scams: Fraudsters impersonate employees to request changes in direct deposit information, rerouting paychecks to fraudulent accounts.
- Phishing Attempts: Scammers send emails with seemingly legitimate requests or links to trick employees into revealing sensitive information.
- Fake Invoice Schemes: These scams involve sending fake invoices or payment requests that appear to be from reputable vendors, tricking companies into issuing payments.
2. Tips to Protect Your Company from Holiday Payroll Scams
To avoid falling victim to these scams, it’s essential to create a proactive security strategy. Here are some steps to safeguard your payroll and HR operations:
- Educate Your Employees: Host a refresher training on recognizing phishing emails, verifying unknown contacts, and reporting suspicious activity.
- Secure Direct Deposit Changes: Implement a double-authentication process for direct deposit requests to ensure that every change is verified through both payroll and the affected employee.
- Review Invoices Carefully: Require a secondary approval for invoice processing during the holidays, particularly for unusual payment requests.
- Strengthen Password Protocols: Encourage employees to update their passwords regularly and use multi-factor authentication to add an extra layer of security.
3. Enhance Your Security with Expert HR Support
Thread can help protect your company and employees with tailored payroll and HR solutions designed to guard against holiday fraud risks. Our team of experts can work with you to:
- Set up secure payroll processes to reduce vulnerability to phishing and fraud.
- Provide employee training on fraud awareness and secure handling of sensitive information.
- Offer comprehensive support to help you create a fraud prevention strategy that’s aligned with your needs.
