The Victoria Police Department is warning area businesses to be wary of “direct deposit diversion” or “payroll” frauds after a reported loss of more than $50,000 in wages.

“These frauds typically involve a ‘phishing’ type fraud where an employer or HR department receives an email that appears to be from an employee who is asking to have their direct deposit information updated,” VicPD said. “The employer updates the direct deposit info provided by the ’employee’ therefore re-directing the employee’s pay cheques to a third-party account. The employee notices once they have not been paid.”

Similar email frauds involve posing as the employer or payroll department asking employees to update their contact and banking info via a fake link that appears to be their company’s website. If the employee provides their login and personal info, cybercriminals can re-direct employees’ pay cheques to another account. These types of frauds are targeted and sophisticated, and cybercriminals may spend time researching the target company or employee.

Here are a few red flags:

The email greeting is generic (keeping in mind that cybercriminals can access employee names and other personal info)
They are requesting info that the employer should already have
Pressure to act quickly or confidentially.

What to do if it happens to you:

Click on the sender’s email address, is it a valid, business address. Does the email address match the sender’s name?
If there is a monetary loss, report to police via the E-Comm Report Desk at (250) 995-7654.
Notify your employer and financial institution right away and change passwords.
Report online to the Canadian Anti-Fraud Centre.
Talk about it.

“These types of frauds are increasingly more sophisticated and are always evolving,” the VicPD said. “Education is the most valuable tool against fraud. Talk to your employees, co-workers, friends, and family about your experience. Education is prevention.”

For more information, email engagement@vicpd.ca or visit Payroll Diversion Frauds – VicPD.ca.