$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
payroll direct deposit redirect scam
Scammers impersonate an employee via email and request that their direct deposit payroll information be changed to a fraudulent bank account.
“email scam”
↑ 1%Key indicators
Usually targetsHR departments
Often hitsFreelancers and contractors
Common regionUnited States
Last updated2026-04-04
Estimated impact
$90K
median reported loss
Typical range$9.0K – $900K
Recovery rate~15%
Annual reports21,489
Scam breakdown
1
Scammers spoof an employee's email or compromise their account and contact HR or payroll
2
They request that direct deposit routing and account numbers be changed to a new bank account
3
One or more paychecks are deposited into the scammer's account before the employee notices missing pay
What to do first
Require in-person or phone verification for any direct deposit changes using a known employee phone number
Related terms
payroll diversion frauddirect deposit change scamHR payroll phishingBusiness email compromiseEmailStableHR departmentsPayroll administratorsSmall business ownersFreelancers and contractorsSmall business ownersPayroll, HR, and finance teamsUnited StatesUnited KingdomCanadapayroll diversion frauddirect deposit change scam
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Rebecca, 35, a hr departments, encountered what appeared to be a legitimate business email compromise situation while using Email. Scammers spoof an employee's email or compromise their account and contact HR or payroll
Step 2
What happened next was calculated: They request that direct deposit routing and account numbers be changed to a new bank account
Step 3
The pressure escalated quickly: One or more paychecks are deposited into the scammer's account before the employee notices missing pay
The outcome
Rebecca realized something was wrong when email from an employee requesting a direct deposit change close to payday. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Require in-person or phone verification for any direct deposit changes using a known employee phone number Rebecca's experience shows why email from an employee requesting a direct deposit change close to payday and request asks that the change be processed quickly without the usual verification steps are the clearest early warning signs.
How to identify it
- Email from an employee requesting a direct deposit change close to payday
- Request asks that the change be processed quickly without the usual verification steps
- Employee's email address has a subtle variation from their official company email
- Pause before paying, clicking, or sharing information. Scammers rely on speed.
- Verify the sender, company, or agency using a phone number or website you already know is legitimate.
- Treat secrecy, urgency, and off-platform payment requests as strong scam signals.
What to do now
- ✓Require in-person or phone verification for any direct deposit changes using a known employee phone number
- ✓Implement a waiting period before new banking changes take effect
- ✓Report to your bank and law enforcement immediately and notify the affected employee
What to save before reporting
- ✓Save the message, profile, phone number, email, or URL that was used.
- ✓Keep payment confirmations, receipts, and account alerts before you dispute or delete anything.
- ✓Write down the timeline while the details are still fresh.
- ✓Keep the full sender address, domain, attachments, and—if possible—the raw email headers.
How big is this problem
You are not alone — this scam affects millions of people.
These numbers come from government agencies and official reports. If you have been affected, know that this is a widespread problem — not something that only happens to careless people.
FTC 2024 fraud losses
Imposters
Most common FTC fraud category in 2024
FTC says imposter scams remained the most commonly reported fraud category in 2024.
History and evolution
- This scam family tends to persist because the social-engineering pressure works even when the exact scripts, platforms, and payment methods change.
- The specific packaging evolves over time, but the core pattern usually stays the same: create urgency, control the channel, and push action before verification.
- The FBI IC3 warns that payroll diversion is a growing BEC variant targeting organizations of all sizes
Recovery and follow-up
- ✓Save the messages, receipts, account alerts, and transaction details before you block or delete anything.
- ✓Report the scam through the official platform or government channel that best matches where it happened.
- ✓Require in-person or phone verification for any direct deposit changes using a known employee phone number
- ✓Implement a waiting period before new banking changes take effect
- ✓Report to your bank and law enforcement immediately and notify the affected employee
Why this pattern keeps working
Even when the story changes, most scams still use the same pressure pattern: urgency, authority, and a request to move money or data fast.
The FBI IC3 warns that payroll diversion is a growing BEC variant targeting organizations of all sizes
FBI IC3 2024
Where to report it
If you have been targeted by this scam, reporting it helps authorities track the pattern and protect others. United States has dedicated agencies that handle fraud reports.
ReportFraud.gov
Federal Trade Commission
Central U.S. consumer fraud reporting portal.
File an IC3 complaint
FBI Internet Crime Complaint Center
FBI portal for internet-enabled crime reports.
Start identity theft recovery
IdentityTheft.gov
Official U.S. identity theft recovery plan builder.
Explore further
Understand the bigger picture
Who is most at risk
Who this scam targets
Primary targets
HR departments, Payroll administrators, Small business owners
Geographic concentration
United States, United Kingdom, Canada
Primary channel
Email — Business email compromise
Why this group is vulnerable
HR departments are particularly vulnerable because this scam exploits trust in familiar brands, authority figures, and time-sensitive decisions. The ongoing nature of reports suggests that awareness among this demographic remains low.
Sources and methodology
How we verify this information
OpenScam tracks scam patterns using a combination of government consumer protection databases (FTC, IC3, Action Fraud), platform-specific fraud reports, and verified consumer complaint data. Each entry is cross-referenced against at least two independent sources before publication.
Severity ratings are based on financial impact potential, reversibility of damage, and volume of reports across multiple reporting channels. Trend velocity reflects the rate of change in report volume over the most recent 90-day window.
This page was last verified on 2026-04-04. Red flags, recovery steps, and reporting resources are reviewed quarterly against current agency guidance.
Evidence and indicators
- The FBI IC3 warns that payroll diversion is a growing BEC variant targeting organizations of all sizes
Source notes
- FBI IC3 2024
Frequently asked questions
Common questions about payroll direct deposit redirect scam
How does the payroll direct deposit redirect scam work?+
Scammers spoof an employee's email or compromise their account and contact HR or payroll They request that direct deposit routing and account numbers be changed to a new bank account One or more paychecks are deposited into the scammer's account before the employee notices missing pay
What are the warning signs of payroll direct deposit redirect scam?+
Email from an employee requesting a direct deposit change close to payday Request asks that the change be processed quickly without the usual verification steps Employee's email address has a subtle variation from their official company email
What should I do if I encounter payroll direct deposit redirect scam?+
Require in-person or phone verification for any direct deposit changes using a known employee phone number Implement a waiting period before new banking changes take effect Report to your bank and law enforcement immediately and notify the affected employee
Who is most at risk for payroll direct deposit redirect scam?+
This scam primarily targets HR departments, Payroll administrators, Small business owners. It is most commonly reported in United States, United Kingdom, Canada and typically appears on Email.
Is payroll direct deposit redirect scam still active?+
payroll direct deposit redirect scam is currently on our watch list. It has been reported across US, UK, CA. Last updated 2026-04-04.
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Help someone avoid this scam.
Scammers succeed because people do not talk about it. If you or someone you know has been affected, there is no shame in it — it happens to millions of people every year. Share this page with friends and family so they know what to look for.
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