Greg's Corner

New Jersey Employers Hit by Deposit Scam

By Greg Collier

A concerning scam targeting employers has recently surfaced in New Jersey, with several companies falling victim to fraudulent direct deposit change requests. While this scheme has been reported in Middlesex County, its nature suggests it could happen anywhere, making it a warning for businesses and employees nationwide.

The scam operates through deceptive emails sent to employers, requesting changes to an employee’s direct deposit account. These emails often appear authentic, containing accurate details like the employee’s name, address, and social security number. This level of detail makes the requests seem legitimate, but a closer look at the sender’s email often reveals fraudulent origins.

Once the employer processes the request, payroll funds are deposited into a new account controlled by the scammers, who withdraw the money almost immediately. In these cases, urgency was a recurring theme, with the fraudulent emails pressuring employers to act quickly without additional verification.

This scam highlights a universal vulnerability in payroll systems. Employers everywhere should consider implementing stronger safeguards to verify any direct deposit change requests. Best practices include requiring in-person confirmation or using a verified phone number to authenticate the request. A dual-verification system can serve as a critical defense against unauthorized account changes.

Employees also have a role in protecting their financial security. Regularly monitoring payroll deposits and immediately reporting discrepancies to employers and law enforcement can help limit the impact of fraudulent activity.

This situation highlights the importance of secure communication in protecting sensitive payroll information. While the scam has been identified in New Jersey, its potential to occur elsewhere serves as a warning to businesses and workers everywhere to remain alert and proactive.