Direct Deposit Diversion Fraud Costs Businesses Over a Million Dollars Every Month

There’s an important scam you need to know about called direct deposit diversion fraud and it’s costing businesses over a million dollars every month.

What exactly is direct deposit diversion fraud?

It’s when a cybercriminal changes your employee’s direct deposit bank account to the criminal’s bank account. So on payday, you think you are paying your employee, but you’re not. You are paying the criminal instead. 

How does this happen?
It’s easy. All the criminal has to do is get your employee’s name, email address, and find out where they work. This can be gathered from several different sources including the company website, from an email, or by looking the person up on social media and checking their FB page or Linked In profile. Then the criminal pretends to be your employee and sends you an email asking to change the employee’s direct deposit bank account. 

Can’t the Company just get their money back?
No. These crooks know what they are doing and change the direct deposit bank account to a loadable debit card that’s already in their possession. Once these cards are loaded, it’s virtually impossible to get the money back. 

How Can Your Company Protect Itself?
It’s simple. Unless the employee hands you a direct deposit bank account change in person, you must go the extra mile and make a phone call and speak with your employee, every single time, to verify that the request you received by email is real.