Protect Your Business from Payroll Fraud

Fraud affects nearly 1 in 4 businesses - don't become a statistic. Fraudsters are always finding new ways to take advantage of companies, so its essential to do your due diligence. It's important to "go with your gut" - if something doesn't feel right, it probably isn't, be sure to take extra steps before processing for that customer.

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Red Flags - Things to look out for:

Use this as a checklist for new customers - if you check any of these, take extra precaution
  1. Employee accounts are PAYCARDS! Perform enhanced due diligence if the cards are issued from The Bancorp routing number 031101169, and MetaBank routing number 073972181
  2. Hurried set-up requested by new payroll customer
  3. New contact person suddenly provided
  4. Communication only via email from payroll customer
  5. Communication itself or method of communication seems abnormal for the customer
  6. Customer and its employees are in geographically diverse locations
  7. Initiation of payroll files on atypical dates
  8. Even dollar payroll credit amounts or payroll credit amounts outside the norm for a customer and/or their industry
  9. Something feels "off" or doesn't feel right

Precautionary Actions:

Beware of contact that is made only via email. Confirmation phone calls or other forms of verification should be used for new customers or when new employees are added for a customer
  • Do not approve new customers or add new employees if there are any questions regarding any actions or information given during the approval process
  • Process prenotes to validate account information
  • Require a wire or 5-day window
  • Update anti-virus software, security settings and fraud filters
  • Remember:
    • Limit access and use of computer(s) that maintain sensitive information
    • Be leery of unknown emails, links, and pop-up boxes. These can all be ways to access your system.

These suggestions are meant to help you deter fraud and are not meant to be the only red flags you look for. You should review and update your procedures to include the measures you feel best helps you to deter fraud.


Contact the Kotapay Risk Department
phone: (800) 378-3328