Most workplace fraud doesn’t begin with obvious warning signs. There’s no flashing alert or suspicious-looking email filled with spelling errors. Instead, it starts with something that looks completely routine, like a phone call from what appears to be your bank or a text message that seems to come from your payroll provider. The person on the other end sounds professional, calm, and helpful, explaining there’s unusual activity on your account and that immediate action is needed to protect company funds.
In the moment, cooperating feels responsible. Unfortunately, that sense of urgency is exactly what scammers rely on. By the time someone realizes the call wasn’t legitimate, the money or information is already gone, and recovery can be difficult or impossible.
This is what modern fraud looks like today. It blends seamlessly into the normal workday, which makes it far more dangerous for employers.
Fraud is growing faster and costing more than most businesses expect
Scams targeting both individuals and organizations have increased dramatically in recent years, and the financial impact is significant. According to the Federal Trade Commission, consumers lost more than 10 billion dollars to fraud in a single year, the highest amount ever recorded. Imposter scams and payment-related schemes accounted for a large share of those losses, and many of those same tactics are now being used against businesses.
Source: https://www.ftc.gov/news-events/data-visualizations/data-spotlight/2024/02/consumer-losses-fraud
When companies are targeted, the numbers can grow even larger. The FBI’s Internet Crime Complaint Center reports that business email compromise and payment redirection scams cost organizations billions of dollars annually, often affecting payroll teams, HR departments, and finance staff who handle sensitive transactions every day.
Source: https://www.ic3.gov/Media/PDF/AnnualReport/2023_IC3Report.pdf
For employers, those statistics translate into very real operational risks, including lost funds, exposed employee data, and disruptions to payroll and benefits systems.
Why modern scams are so convincing
One of the biggest challenges employers face is that scams no longer look suspicious. Advances in technology allow criminals to spoof phone numbers and clone email domains so messages appear to come from trusted sources. A call may display your bank’s name, or an email may look identical to a legitimate vendor or internal department, making it extremely difficult for employees to recognize the difference.
Because these communications feel familiar, employees often treat them like any other routine request. During a busy day filled with deadlines, onboarding tasks, invoices, and payroll processing, there’s little reason to assume something is wrong. That normalcy is precisely what scammers exploit, inserting themselves into everyday workflows where they’re least likely to be questioned.
Businesses are especially attractive targets
From a scammer’s perspective, organizations offer far greater rewards than individuals. A single successful interaction can provide access to payroll systems, benefits data, vendor payments, or large company accounts. Instead of stealing a few hundred dollars, criminals may walk away with thousands or even millions in one transaction.
Employees who work in HR, accounting, and operations are particularly vulnerable because their responsibilities already involve handling confidential information and approving financial activity. Requests to verify account details, update payment information, or process a transfer are part of their daily routine. When a fraudulent request mirrors those tasks, it can easily slip through without raising alarms.
All it takes is one moment of trust combined with a sense of urgency.
The psychology behind scam tactics
While many people assume fraud is purely technical, most scams rely more on manipulation than hacking. Criminals use social engineering techniques designed to create pressure and fear, pushing people to act quickly without verifying what’s happening. A caller may claim there’s suspicious activity that could freeze accounts or delay payroll, insisting that immediate action is necessary to avoid serious consequences.
Once that urgency sets in, the requests begin to sound small and reasonable. An employee may be asked to move funds temporarily to “secure” an account, download software to “fix” a problem, or share a one-time code to confirm their identity. Each step seems harmless on its own, but together they provide access to sensitive systems and information.
Federal cybersecurity agencies consistently warn that these social engineering tactics are now one of the most common causes of data breaches across organizations of all sizes.
Source: https://www.cisa.gov/topics/cybersecurity-best-practices
The ripple effects of one mistake
When fraud impacts an individual, the consequences are frustrating. When it impacts an employer, the effects can spread quickly across the entire organization. A compromised login may expose employee Social Security numbers or direct deposit details. Fraudulent transfers can disrupt cash flow and vendor payments. In some cases, businesses must deal with compliance requirements, reporting obligations, or even legal exposure.
Beyond the financial impact, there’s also a human cost. Employees expect their personal information and pay to be handled securely. When something goes wrong, trust erodes, and leadership must spend time reassuring teams while investigating the issue. What began as a simple phone call can quickly turn into days of operational disruption.
That’s why scam prevention is no longer just an IT issue. It’s an HR, compliance, and risk management priority.
Creating a culture of awareness and verification
The encouraging news is that most scams fail when employees slow down and verify requests. Criminals depend on speed and pressure. When someone pauses to double-check a situation, the deception often becomes clear.
Encouraging employees to question unexpected calls, verify requests through trusted channels, and refuse to share passwords or authentication codes can significantly reduce risk. Simple practices such as hanging up and calling an official number directly or confirming changes internally before moving funds can prevent costly mistakes. These habits may seem small, but they create a strong first line of defense.
Over time, that awareness becomes part of the company culture, making it much harder for scammers to succeed.
How C2 helps employers stay protected
At C2, we work with employers every day to identify risks that could disrupt their workforce, finances, or operations. Fraud prevention fits naturally alongside HR compliance, employee training, and workplace safety because all of these efforts share the same goal: protecting your people and your business before something goes wrong.
By helping organizations implement clear policies, educate employees, and strengthen internal processes, we support a more proactive approach to risk management. Whether the threat is a workplace injury, a compliance gap, or a convincing scam attempt, preparation makes the difference between a minor inconvenience and a major crisis.
Staying informed and building a culture of caution doesn’t just protect data. It protects trust, stability, and the day-to-day operations your business depends on.