What is the risk of fraud with Direct Deposit?
Using Direct Deposit prevents criminals from altering or counterfeiting payroll checks. It also reduces the risk of criminals obtaining your employees’ account numbers. An article released by the Institute of Management and Administration states, “One of the easiest ways to prevent check fraud is not to issue checks at all. The reason Direct Deposit is critical is often the checks that are forged are payroll checks.” And, check fraud is growing at alarming rates. The National Check Fraud Center reports that check fraud and counterfeiting are producing estimated annual losses of $10 billion.
Using Direct Deposit prevents criminals from altering or counterfeiting payroll checks. It also reduces the risk that accounts will be breached. One of the easiest ways to prevent check fraud is to stop relying on paper checks for payments. Unfortunately, check fraud is growing at alarming rates. The National Check Fraud Center reports that check fraud and counterfeiting are producing estimated annual losses of $10 billion.
