Payroll fraud is the criminal manipulation of pay systems to redirect wages, change bank account details, or create unauthorized payments. Attackers may do this by stealing employee credentials, abusing HR or payroll portal access, or tricking staff into approving changes. Because payroll systems connect identity, finance, and routine business operations, even a small change can move money quickly and quietly.
In cyber security, payroll fraud matters because it often follows a compromise of employee records rather than a direct attack on cash systems. Exposed tax data, bank details, and login information can help criminals impersonate staff and submit believable payment updates. Defenses include multifactor authentication, least-privilege access, dual approval for payroll changes, monitoring for unusual edits, and verification callbacks for bank-account updates. Strong logging and rapid review of HR and payroll systems help stop fraudulent changes before payday.