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Level 2

Direct Deposit fraud

In 2021, I received an email from what I thought was our employee requesting to change DD banking info. 

It was same exact email address, and signature. Needless to say, I was scammed and processed payroll check to fraudulent account. unfortunately, it was too late to retrieve by the time it was realized. Currently, funds show in quickbooks as though my employee received funds. How do I correct this in quickbooks? I want to make sure W-2 does not include this amount in earnings. 

5 Comments 5
QuickBooks Team

Direct Deposit fraud

Thanks for sharing such detailed information about your concern,35351.

You can void the paycheck that is recorded in QuickBooks and record a replacement if you've created one. You'll need to record the lost money via regular check to replace the voided Direct Deposit. 


Here's how:


  1. From the Employees menu, select Pay Employees.
  2. Select the name of the employee.
  3. Click the Open Paycheck Detail button (or fill in the information in the excel row along the employee's name and hit Continue).
  4. Enter the details of the payroll and click Save & Close.
  5. Click Continue and hit Create Paychecks.


f you want to get more resources about handling payroll reports in QBDT, you can check the articles below.



Stay in touch if you need more assistance. I'll be around to help anytime. Take care and stay safe always.

Level 2

Direct Deposit fraud

I understand voiding the check that was lost. How do i handle the liabilities that were tied to that check?


I don't understand the steps you have given to replace check that was voided.

If i go to Employees, then to pay employees, the only selections I have are scheduled, unscheduled, termination check.  


Direct Deposit fraud

Thanks for following up with the Community, 35351.

If your check isn't a part of the normal pay period, you can enter the paycheck you recreate as an unscheduled one and backdate it to add your appropriate liability period. The steps for doing this can be found in LeizylM's post.

If you're wondering how to go about handling this situation with your records in QuickBooks, I'd recommend working with an accounting professional. If you're in need of one, there's an awesome tool on our website called Find an Accountant. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.

Here's how it works:

  1. Go to our Find an Accountant page.
  2. In the Find an expert in section, choose what you're looking for, then use your search field to enter a City or ZIP code.
  3. Select Search.
  4. Browse through the results and find one that works best for your business. You can click on each ProAdvisor's profile to learn more information about them.

Once you've found an accountant, they can be contacted through their Send a message form:

  1. Use the available text box to introduce yourself. Be sure to include details about which services you're looking for.
  2. Enter your appropriate info in the Your nameYour email, and Your phone number (optional) fields.
  3. Hit Send message.

I've also included a detailed resource about working with payroll fraud which may come in handy moving forward: What is payroll fraud?

I'll be here to help if there's any additional questions. Have a wonderful day!

Level 1

Direct Deposit fraud

What if the direct deposits for an employee have cleared the bank already?  I need to reissue these checks to the correct employee.  However, I don't want to have the employees W-2's to show the 2 paychecks on his W-2's.  The matter has been turned over to the Police at this time.  We are unsure of who collected these funds and I don't know what to do which the direct deposits?

QuickBooks Team

Direct Deposit fraud

Thanks for chiming in on this thread, kcampy.


I'll share some additional information about the process and how you can sort the direct deposit paycheck.


When a direct deposits is cleared, you can void the paycheck. Voiding a paycheck changes your records and updates the paycheck dollar amount to zero. 


Here are the steps:


  1. Go to Employees > Edit/Void Paychecks.
  2. Change the Show paychecks through/from dates to the date of the paychecks you need to void, then press Tab on your keyboard.
  3. Select the check-in question, and click Void.
  4. In the pop-up box, enter YES and select Void.
  5. Put a checkbox to agree to the terms and conditions of voiding the paycheck.

After the steps, we need to send the voided paychecks and let our system know to cancel it.


Here's how:


  1. Go back to the Employees menu, then select Send Payroll Data.
  2. Click Send. You won't see any direct deposit checks to send, but this lets our system know to cancel the paychecks.
  3. Enter your payroll PIN, then hit OK.

For reference, you can check out this guide: Delete or void employee paychecks.


Once done, you can create a new paycheck by following the steps in this article: Create and run your payroll.


In addition, you can request a direct deposit reversal 5 business days from the pay date. To learn more about the process, feel free to check on this link: Reverse a direct deposit.


If you need further assistance about the payroll process or other concerns, please let me know in your reply. We're always here to help you. Stay safe!

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