Practical guides 5 min read

Verify Payroll IBANs Before Payday: Stopping Salary Diversion

Payroll is a soft target: a single fraudulent 'please update my bank details' email can divert an employee's entire salary. Verifying the IBAN against the employee name before payday is the simplest defence.

By Verification of Payee EU · powered by RoxPay

Key takeaways

  • Salary-diversion fraud redirects pay by changing an employee's bank details before a payroll run.
  • Verify the payee name against the IBAN whenever bank details are added or changed.
  • Batch-verify the payroll file before release so a diverted salary is caught in time.

Salary-diversion fraud is the payroll cousin of invoice redirection. An attacker, posing as an employee, emails HR or payroll asking to 'update my bank account'. The details are changed, and on payday the salary lands in the fraudster's account. The employee only finds out when their pay doesn't arrive.

Why payroll is exposed

Bank-detail changes in payroll often arrive by email and are processed without an independent check that the new account actually belongs to the employee. The IBAN is valid, the request looks routine, and the change sticks — until payday.

Verify the change, not just the run

The riskiest moment is a bank-detail change. Verifying the employee name against the new IBAN at that point — and again before the run — catches diversion before money moves.

A payroll verification routine

  1. 1 Verify the employee name against the IBAN whenever bank details are first captured or changed.
  2. 2 Treat a no match as a stop and confirm with the employee through a known channel — not the email requesting the change.
  3. 3 Before each payroll run, batch-verify the file so any mismatched account is flagged before release.

Doing it at scale

For anything beyond a handful of staff, manual checks don't scale. Verification of Payee can verify each line of a payroll file via API before release, or staff can run ad-hoc checks from a dashboard. RoxPay offers both, so payroll and HR teams can put a name check in front of every salary payment.

FAQ

Frequently asked

It's a scam where an attacker poses as an employee to change payroll bank details, so the next salary run pays the fraudster instead. It's a payroll variant of authorised push payment fraud.

Verification of Payee checks the employee name against the new IBAN. A fraudster's account isn't in the employee's name, so it returns a no match — exposing the diversion before payday.

Yes. Via the API you can verify each line of the payroll file before release, flagging any mismatched account in advance.

Protect every payday

Talk to RoxPay about verifying payroll IBANs from the dashboard or in bulk via API.