Cybersecurity frauds are targeting direct deposit payroll at local governments

A red fraud button on a computer keyboard.Local governments should ensure they protect against cybersecurity frauds in which an employee’s direct deposit payroll gets redirected to a fraudster’s bank account.

In this type of fraud, the fraudulent request to change the bank account uses the government’s change form that is emailed or mailed to payroll. In other cases, the fraudulent request is made in an email that looks like it is from the employee’s email account. The fraudulent bank accounts are frequently associated with out-of-state or internet banks.

We recommend that any request to change a direct deposit bank account include an in-person or verbal verification with the employee before the change is initiated.

We caution you to NOT use email to verify a change request; in some cases, the employee’s email account has been compromised and the fraudster intercepts and responds to the emailed verification.

If your government is a victim of this fraud, you are required to report it to the Office of the Washington State Auditor at portal.sao.wa.gov/saoportal/public.aspx/LossReport.

We also recommend reporting it to the FBI’s Internet Crime Complaint Center (IC3) at www.ic3.gov/complaint/default.aspx

Know what to look for to prevent disbursement fraud

Fraudulent disbursements are the most A stack of cash is wrapped tightly in a chain that is secured by a padlock.common form of asset misappropriation. This type of disbursement occurs when an employee uses their position to make payment for an inappropriate purpose. They are on-book fraud schemes, which means that money in the form of checks leaves the entity fraudulently, but is recorded on the books and leaves an audit trail. In this way, entities can become victims of fraud, even when no cash is involved. Continue reading

“Vishing” can pose a threat

What is “Vishing”?

“Vishing” uses techniques that are essentially similar to phishing, the act of acquiring sensitive information via electronic communication while posing as a trusted entity. A vishing attack takes place over the telephone, using call spoofing, and tricks a user into disclosing personal information such as credit card numbers or a three digit security code.

Recent vishing attacks use an automated robo-caller stating that the victim’s security software was breached and requests them to call a number. Calling the number will connect the victim to a human who will attempt to access the victim’s workstation via Citrix remote access. Once they have access to your computer, they can do the following: Continue reading

A manager hired to help developmentally disabled people misappropriates more than $58,000

fraud2(Audit report published Aug. 11) The Department of Social and Health Services (DSHS) oversees supported living agencies, which provide services to individuals with developmental disabilities. A house manager runs the daily operations of the supported living home such as purchasing food, completing payroll, and paying bills. Continue reading