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We want to address a recent increase in attempted payroll fraud affecting employees across multiple organizations nationwide,  including some clients on the isolved People Cloud system.

What’s happening?

In the past few weeks, there have been isolated incidents of employee direct deposit accounts being changed fraudulently. After investigation, these changes were not due to a breach of isolved’s systems, but rather because individual employees’ credentials were compromised through phishing emails or reused passwords that had already been exposed elsewhere.

How do scammers get in?

Cybercriminals are using “InfoStealer” malware and fake logins to capture employees’ usernames, passwords, and even MFA codes. Once they have those, they can change direct deposit details to divert paychecks,  often to Chime or WorldPay accounts.

What isolved is doing

• Notifying users of login attempts from new devices

• Locking accounts if a password is found in a known data breach

• Sending alerts for multiple direct deposit changes

• Enhancing AI fraud detection for payroll modules

• Performing regular security audits

• Strengthening passkey and MFA options for all users

What Vida HR is doing

• Employees and the Payroll Specialist now receive an alert whenever a direct deposit change is made.

• The Payroll Specialist will then verify the change with the employer to ensure it is accurate.

• Immediately assisting any impacted employees to reset credentials and secure accounts

• Helping employees update email addresses if needed

• Advising clients on best practices to limit exposure

• Providing easy instructions to set up Multi-Factor Authentication (MFA)

• Verifying and restoring correct direct deposit information when needed

What you and your employees should do NOW:

1. Review isolved account settings regularly
   Log in at least every pay period and check Direct Deposit details.

2. Use a unique, strong password
   Never reuse the same password for isolved and other sites.
   Make sure passwords are at least 12 characters with numbers and symbols.

3. Set up Multi-Factor Authentication (MFA)
   Use a phone-based authenticator app or passkey. Avoid using email-only MFA.

4. Watch for phishing emails
   Do not click suspicious links. Verify the sender by contacting them through official channels — never use phone numbers or links provided in suspicious emails.

5. Report anything suspicious immediately
   If an employee sees an unexpected change in isolved, notify Vida HR right away so we can help secure the account.

Steps we take when fraud is suspected

• If an employee’s account is compromised:

  • Vida HR helps update the email address on file or reset passwords immediately

  • We enable/require MFA to prevent future unauthorized changes

  • We review all direct deposit details with the employee to restore the correct accounts

  • We monitor closely and provide ongoing security guidance

Bottom line:

This is an evolving threat that relies on tricking individuals and is not a security failure within isolved itself. Together, we can stop scammers in their tracks through better employee awareness, strong passwords, MFA, and regular account reviews.

If you would like a customized communication, you can share directly with your employees or need help updating your security practices, please let us know. We are here to help.