ASA has been advised of an alleged attempted payrolling scam in Massachusetts aimed at a staffing agency. An individual contacted the agency requesting that it payroll employees. The individual provided his company’s employee roster. The staffing firm ran a credit check on the company and found the company name, owner’s name, and address all matched a legitimate Massachusetts business that has existed for 15 years, but there was very little credit history.
Several additional red flags then appeared. The individual had unusual urgency to complete the payroll. The alleged “employees” began onboarding, but when the staffing company tried to contact them by phone, no one could be reached. Upon advising the individual that the staffing company utilized E-Verify and required visual identification verification, the individual disappeared. It was then determined that the alleged “employees” had submitted fake identification documents and their direct deposit forms were attempting to route funds to cash cards.
Staffing agencies should be on the lookout for such scams and report suspicious or fraudulent activity to their local law enforcement agency.
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