Payroll diversion scam
If you suspect payroll diversion scam, you are right to be cautious. This page breaks down how the HR direct-deposit change request actually works, the manipulation tactics scammers use, the typical losses victims report to ScamGuard, and the concrete recovery steps that work in the first 24 hours.
Frequently asked questions
What is payroll diversion scam?
Payroll diversion scam is a fraud pattern in which scammers deceive victims through a repeatable, often scripted approach. The variant explained on this page differs from generic phishing in the social-engineering hook it uses.
What are the warning signs of payroll diversion scam?
Pressure to act fast, requests for gift cards, wire transfers, Zelle, or crypto, refusal to meet in person or video call, secrecy ("don't tell your bank"), and stories that escalate every time you push back.
What should I do if I've been contacted by payroll diversion scam?
Stop responding. Save every message, screenshot every transaction. Do not click any "verify" or "release funds" link. Report to ScamGuard so the next victim gets warned, then file with the FTC at reportfraud.ftc.gov and IC3 at ic3.gov.
Can I recover money lost to payroll diversion scam?
Sometimes. Speed matters more than anything. Wire transfers can be recalled within ~24 hours via SWIFT recall. Zelle, Venmo, Cash App, and crypto are nearly impossible to reverse — but you should still file the report; banks occasionally cover losses under Reg E for unauthorized transactions.
Is payroll diversion scam illegal?
Yes — in every US state and most countries. It is a federal wire fraud offense in the US (18 U.S.C. § 1343), with sentences up to 20 years. Reporting matters because aggregated reports trigger active investigations.
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