Attempted scheme to redirect direct deposit paychecks

The Norton Police Department has taken reports lately of an attempted scheme to redirect direct deposit paychecks into alternate accounts.   

In both incidents, an unknown individual posing as a senior member of the company contacted a payroll administrator by email and requested changing personal payroll direct deposit to a new account.  Once contact was established, the individual provides routing and account numbers for the payroll change.  At both businesses, the requested new account was through Green Dot Bank, an online financial institution which offers mobile electronic banking.  Accounts at Green Dot can be opened directly over the internet and account funds can be transferred with ease.

The originating email is often directed through multiple ip addresses.  Similarly, the mobile accounts facilitate moving the funds very rapidly, leaving a vague trail.

It is of vital importance that business leaders and payroll administrators become educated regarding this fraud.  Also, best practices should include dual layers of verification so that financial losses can be prevented before transfers have taken place.

If not recognized early, the financial losses have been very high and the funds are very difficult to recover.

Please contact Norton Det. Charles Turcotte if you have any questions.