Summer isn’t just about vacations, it also brings an increased risk of fraud. With reduced vigilance and quicker decision-making, companies become more vulnerable to attacks. In this article, we outline how to prevent payroll fraud and GDPR incidents during the summer months.
As the holiday season approaches, many look forward to sunshine, time off, and a slower pace at the office. But for fraudsters, it's the opposite, this is when they strike. Fewer staff on site, temporary replacements, and faster decisions create ideal conditions for payroll fraud. These schemes can be difficult to detect, especially now that AI and deepfakes have changed the rules of the game.
Why is summer especially vulnerable?
During the summer, many regular employees are on leave. With fewer eyes on processes and temporary staff unfamiliar with all procedures, the risk of fraud increases. Fake invoices, altered payroll information, and scam emails are more likely to slip through when systems aren’t monitored as usual. These fraud attempts are increasingly sophisticated. They may involve AI-generated videos or deepfakes of your CEO approving a bonus, fictitious employees using stolen identities, or highly convincing phishing emails that mimic internal communication or hijack ongoing conversations.
How to prevent payroll fraud
Establish clear routines and permissions
To reduce the risk of payroll manipulation, define who is authorized to approve payments or make changes to payroll data. Consider implementing dual approvals for sensitive changes and ensure payroll systems are protected with two-factor authentication. A clear division of responsibilities reduces the risk of mistakes and ambiguity.
Share important information securely
Always use a secure platform to receive information about changes to employees’ bank account numbers or salary details. Sending these types of changes by email involves an increased risk. If you do receive such information via email: call and verify. Never accept an email alone, even if it appears legitimate.
Educate your staff
Ensure both permanent and temporary employees are trained to recognize phishing emails, CEO fraud, and AI-driven attacks. Make sure summer temps receive a proper introduction to your security procedures.
Identify risk areas
Before the holiday period, review which parts of the payroll process are most vulnerable to errors or manipulation. This might include the absence of key personnel, gaps in approval workflows, or unclear decision paths. A quick review can greatly reduce the risk of something falling through the cracks.
Monitor unusual transactions
Keep an eye out for irregular payments, such as unusually large amounts or new bank accounts.
Protect personal data
Fraudsters may be after sensitive information rather than money. Therefore, never share payroll or personal data without verifying the recipient. Internal requests should also be handled with care. Maintain accurate and up-to-date contact details for both internal and external parties. Just as importantly, ensure that information is stored securely and only accessible to authorized individuals.
Before going on vacation, schedule a meeting with key internal and external stakeholders. Review contact information and clarify responsibilities. This could be critical in preventing a minor oversight from turning into a major fraud incident.
As a client of Azets, you can feel confident knowing that we work proactively to detect irregularities and have systems in place to prevent unauthorized payroll payments.