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Annual Reminder: Payment Fraud Awareness & Secure Processing Notification

DATE: Tuesday, October 20, 2026

Please ensure this information is shared with your Servicing Personnel Offices, Payroll Liaisons, and all other appropriate staff.

As part of our ongoing commitment to safeguard payroll operations and protect federal employees and agency resources, the Payroll Operations Division (POD) is issuing our annual reminder on payment fraud risks and secure procedures for updating payroll‑related information.

Understanding Payment Fraud

Payment fraud occurs when cybercriminals initiate false or unauthorized transactions in an effort to obtain money, personal property, or sensitive information. These individuals often pose as employees or senior officials, using methods such as:

  • Email
  • Text messages sent to mobile devices
  • Instant messaging platforms

These tactics are intended to mislead individuals responsible for processing personnel and payroll actions into processing unauthorized changes, often involving banking or mailing information associated with payroll disbursements.

Required Security Procedures

To reduce vulnerabilities and strengthen internal controls, POD stopped manually processing payroll information changes effective March 9, 2020. As a reminder, the following changes cannot be submitted via email, fax, or postal mail:

  • Electronic Funds Transfer (EFT) banking information.
  • Hardcopy check address details.
  • Official mailing/home address changes.
  • Voluntary or discretionary allotment changes.
  • Requests submitted via forms such as POD‑09 (Non‑Receipt of Direct Deposit/EFT Payments) or POD‑10 (Non‑Receipt of Hard Copy Salary Check).

All updates must be submitted through:

  • Employee Express (self‑service); or
  • Servicing Personnel Offices or Payroll Liaisons, who will verify the employee’s identity prior to making any changes.

These measures significantly reduce exposure to fraudulent activity and ensure proper authentication before changes are made.

How You Can Help

We ask all federal employees, Servicing Personnel Offices, Payroll Liaisons, and User Group Representatives to:

  1. Stay vigilant for suspicious messages or phishing attempts.
  2. Report any questionable emails immediately to your IT Manager or Cybersecurity Officer. Any fraudulent requests related to EFT changes should also be reported to the appropriate local law enforcement authority and/or the FBI.
  3. Verify any unexpected requests—especially those involving banking, allotment, or address changes—directly with the employee before processing.
  4. Ensure your agency’s secure file-transfer mechanisms, such as encrypted data exchanges systems, remain active and compliant.
  5. Follow all processes outlined in the Salary Payment Recertified or Reissued section of the Client Interface Guide, when applicable.

Our Shared Commitment

Your partnership is essential in maintaining a secure payroll environment. By adhering to these procedures and remaining alert to potential fraud, you help protect employees, agencies, and federal resources. Thank you for your continued cooperation and commitment to safeguarding federal payroll operations.

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