A company purporting to be Teak Transport out of Ohio has recently scammed or attempted to scam
multiple PEOs across the United States. Please be vigilant in your prospect review process.
Here are a few basic suggestions to help you protect against fraud:
1. Beware of prospects who are pressing you to provide your services (especially payroll only)
2. Take time to research the prospective client, the company, and the employees. Make sure to
research the business entity with the Secretary of State where the business is located.
Google is your friend.
3. Require secured funds for payroll payments from new clients. Wire transfers are a commonly
used method in the industry.
4. Set up a call with the bank and the client (and get the contact information for the bank from a
source other than the client).
5. Consider requiring an up-front deposit or onboarding fee.
6. Beware of prospects who are unwilling to participate in a face-to-face meeting.
7. Pay card requests for an entire workforce are suspicious, too.
8. Educate your employees on the process within your PEO on vetting prospects. Make sure to
have a gatekeeper who monitors the prospects/new “clients” and understands the warning
signs of suspicious behavior.
At GIGA Solutions, we partner with the best service providers to offer a multitude of insurance and outsourcing solutions to help PEOs and other businesses grow, along with organizations, such as NAPEO, that are continuously contributing to the growth of the PEO industry.