Tamara Burns  |  May 20, 2016

Category: Consumer News

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identity theft FACTAEarlier this month, it was disclosed that there was a data breach of information from an unsecured external website connected to ADP, one of the top payroll outsourcing companies in the U.S.

The ADP payroll services data breach occurred “because ADP offered an external online portal that has been exploited,” according to a letter U.S. Bancorp (U.S. Bank) employees received about the security issue.

According to data breach news outlets, the hackers apparently did not access ADP’s website directly, but they used personal information obtained in other ways to access the employee information on the external customer portal linked with ADP payroll services.

Once on the ADP customer portal website, hackers simply entered the information they previously obtained, such as names, dates of birth and social security numbers and were able to view or download W-2 information.

Not only have the individuals been affected by the U.S. Bank and ADP payroll services data breach, it is also known that these same individuals already had their information compromised prior to the ADP data breach notification as the hackers needed personal information to log in to the external website.

If any of these individuals had filed a tax return extension from the IRS, which about 12 million or more Americans do (representing about 10 percent of the tax returns filed), then the situation may be even more dire. If a hacker has access to the W-2 through the data breach, a fraudulent tax return may be filed on the individual’s behalf.

U.S. Bank and ADP payroll services have both said that the number of employees who were impacted by the breach was likely limited. According to a statement made to SC Magazine, U.S. Bancorp spokeswoman Dana Ripley said about two percent of the 60,000 employees may have been impacted.

It has also been noted that a dozen or more companies in addition to U.S. Bank have likely been affected by the ADP payroll services data breach, though no specific company names have been released at this time to data breach news outlets.

What Should You Do if You May Be Affected by the ADP Payroll Services Data Breach?

If you suspect that your identity has been stolen, you should file a form 14039 with the IRS. This Identity Theft Affidavit will alert the agency to keep an eye out for any tax returns that may be filed under your Social Security Number so it can keep you posted about any potentially malicious tax fraud activity.

You should also monitor your credit report. You may get a free copy of your credit report from each of the three main credit reporting agencies, (Experian, TransUnion and Equifax), by visiting www.annualcreditreport.com. A number of private companies also allow you to obtain real-time credit monitoring services for an additional monthly fee.

Finally, if you have been a victim of the ADP payroll services data breach, placing you at additional risk for tax fraud, you may be able to join a free class action lawsuit investigation.

If a class action lawsuit is filed as the result of the investigation, it will seek damages as well as credit protection and credit monitoring services to be provided for all individuals affected by the data breach.

Join a Free ADP Data Breach Class Action Lawsuit Investigation

If your employer uses ADP to process payroll and you received an ADP paycheck or ADP W2 tax form, you could become the victim of tax fraud. You may be eligible to join a class action lawsuit investigation to help compensate you for past and future losses.

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