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Preventing Payroll Fraud

The following are some best practices to adopt and perform on a regular basis to identify potential problems before they occur.

  • Reconcile the number of pays per cycle to the number of active employees you have. If the number of pays is greater than the number of employees, then investigate!
  • Regularly inspect the Personnel Change Report for every payroll and payroll preview activity. Look for the following:
    • New hires.
    • Bank account changes.
    • Pay rate changes.
    • Address changes, especially to an area where you do not have many other employees.
  • Regularly run a report identifying employees who split direct deposit pays into multiple accounts and investigate changes to this list to ensure they are valid.
  • Generate a regular access control report for all client administrator and practitioner roles. Review it for accuracy and appropriateness, and make sure their contact information is valid and up-to-date.

ADP Self-Service Registration Best Practices

  • Your company registration code should be restricted to only those that need to know it. Establish a process for its secure distribution to users.
  • Contact your ADP service team about a higher-level security method of using personal registration codes (recommended) and other secure registration options that may be available.
  • Use back-end validation for self-service registration.

Detecting Payroll Fraud

Below are some common indicators that fraud may be occurring with respect to your payroll account:

  • Receiving a “preview” email for a payroll that you did not submit.
  • Indication that a payroll has unexpectedly been transmitted or delivered to you.
  • Employees reporting unexpected or excessive funds in their bank accounts resulting from payroll transactions such as “extra deposit.”
  • Changes on your payroll that you did not perform, such as a change in status of an employee.

Payroll Management

  • Confirm that your computers have regularly updated anti-virus and anti-malware software installed behind a reputable firewall.
  • Physically secure the computer used for processing and approving payroll activities and dispose of confidential hard copy and electronic media appropriately.
  • Always change passwords to payroll-related systems whenever there is a change in payroll administration personnel.
  • Split your payroll management tasks so that one individual is responsible for preparing the payroll and another is responsible for submitting it and verifying the output.
  • Consider performing payroll and banking tasks on a separate, dedicated system used only for those purposes.
  • If for any reason you suspect a security breach, do not use the system and immediately seek help from your IT security or technology group.
  • Provide ADP with up-to-date contact information for your payroll administrator to ensure that we can make immediate contact if we detect suspicious activity.

Protecting our clients and their data is a top priority for ADP.

Our lifeblood is based on a code of ethics and ability to be accountable to our clients.

Roland Cloutier
Chief Security Officer

Protection Against Phishing