Payroll scam hits U.S. universities as phishing wave tricks staff

Phishing scams target every kind of institution, whether it’s a hospital, a big tech firm, or even a fast-food chain. Educational institutions aren’t an exception, especially in 2025, when attackers are actively directing their efforts toward them. Universities across the U.S. are facing a new type of cybercrime where attackers are targeting staff to hijack salary payments. Researchers have discovered that since March 2025, a hacking group known as Storm-2657 has been running “pirate payroll” attacks, using phishing tactics to gain access to payroll accounts. Let’s talk more about this attack and how you can stay safe.

How does the university payroll scam work

According to Microsoft Threat Intelligence, Storm-2657 primarily targets Workday, a widely used human resources platform, though other payroll and HR software could be at risk as well. The attackers begin with highly convincing phishing emails, carefully crafted to appeal to individual staff members. Some messages warn of a sudden campus illness outbreak, creating a sense of urgency, while others claim that a faculty member is under investigation, prompting recipients to check documents immediately. In some cases, emails impersonate the university president or HR department, sharing “important” updates about compensation and benefits.

These emails contain links designed to capture login credentials and multi-factor authentication (MFA) codes in real time using adversary-in-the-middle techniques. Once a staff member enters their information, the attackers can access the account as if they were the legitimate user. After gaining control, the hackers set up inbox rules to delete Workday notifications, so the victims do not see alerts about changes. This stealthy approach allows the attackers to modify payroll profiles, adjust salary payment settings, and redirect funds to accounts they control, all without raising immediate suspicion.

Microsoft

Hackers are exploiting universities at scale

The hackers don’t stop at a single account. Once they control one mailbox, they use it to spread the attack further. Microsoft reports that from just 11 compromised accounts at three universities, Storm-2657 sent phishing emails to nearly 6,000 email addresses at 25 institutions. By using trusted internal accounts, their emails appear more legitimate, increasing the likelihood that recipients will fall for the scam.

To maintain access over time, the attackers sometimes enroll their own phone numbers as MFA devices, either through Workday profiles or through Duo MFA. This gives them persistent access, allowing them to approve further malicious actions without needing to phish again. Combined with inbox rules that hide notifications, this strategy lets them operate undetected for longer periods.

Microsoft emphasizes that these attacks don’t exploit a flaw in Workday itself. Instead, they rely on social engineering, the absence of strong phishing-resistant MFA, and careful manipulation of internal systems. In essence, the threat comes from human behavior and insufficient protection, not software bugs.

Microsoft

6 ways to stay safe from payroll and phishing scams

Protecting yourself from payroll and phishing scams isn’t complicated. By taking a few careful steps, you can make it much harder for attackers to gain access to your accounts or personal information.

1) Limit what personal information is online

The more information scammers can find about you, the easier it is to craft convincing phishing messages. Services that remove or monitor personal data online can reduce exposure, making it harder for attackers to trick you with targeted emails.

While no service can guarantee the complete removal of your data from the internet, a data removal service is really a smart choice. They aren’t cheap, and neither is your privacy. These services do all the work for you by actively monitoring and systematically erasing your personal information from hundreds of websites. It’s what gives me peace of mind and has proven to be the most effective way to erase your personal data from the internet. By limiting the information available, you reduce the risk of scammers cross-referencing data from breaches with information they might find on the dark web, making it harder for them to target you.

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2) Think before you click

Scammers often send emails that look like they come from your HR department or university leadership, warning about payroll, benefits, or urgent issues. Don’t click links or download attachments unless you are 100% sure they are legitimate. Even small mistakes can give attackers access to your accounts.

The best way to safeguard yourself from malicious links is to have antivirus software installed on all your devices. This protection can also alert you to phishing emails and ransomware scams, keeping your personal information and digital assets safe.

3) Verify directly with the source

If an email mentions salary changes or requires action, call or email the HR office or the person directly using contact information you already know. Phishing emails are designed to create panic and rush decisions, so taking a moment to verify can stop attackers in their tracks.

4) Use strong, unique passwords

Never reuse passwords across multiple accounts. Scammers often try to use credentials stolen from other breaches. A password manager can help you generate strong passwords and store them securely, so you don’t have to remember dozens of different combinations.

Next, see if your email has been exposed in past breaches. Our #1 pick, NordPass, includes a built-in breach scanner that checks whether your email address or passwords have appeared in known leaks. If you discover a match, immediately change any reused passwords and secure those accounts with new, unique credentials.

5) Enable two-factor authentication (2FA)

Add an extra layer of security by enabling 2FA on all accounts that support it. This means even if someone steals your password, they still can’t log in without a second verification step, such as a code sent to your phone.

6) Regularly check financial and payroll accounts

Even if you follow all precautions, it’s smart to monitor your accounts for any unusual activity. Catching unauthorized transactions quickly can prevent bigger losses and alert you to potential scams before they escalate.

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Kurt’s key takeaway

The Storm-2657 attacks show that cybercriminals are targeting trust, not software. Universities are appealing because payroll systems handle money directly, and staff can be manipulated through well-crafted phishing. The scale and sophistication of these attacks highlight how vulnerable even well-established institutions can be to financially motivated threat actors.

How often do you check your payroll or bank accounts for unusual activity? Let us know in the comments below.

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