Amanda Antell  |  May 23, 2016

Category: Consumer News

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ADP data breachUsing an online feature, computer hackers have managed to steal ADP W2 information for workers from dozens of companies who use the payroll giant.

ADP has not disclosed when the theft occurred or how many people were victimized, but the cyber attack news has left many experts shaken. The attack shows that hackers are using new techniques to steal personal information. In this case, hackers were after the ADP W2 forms that would allow the hackers to file for fraudulent tax refunds.

ADP payroll serves over 630,000 corporate clients worldwide, including U.S. Bank, where 1,400 employees were affected by the breach.

The majority of employees in the United States have received a paycheck processed through ADP payroll at least once in their lifetime.

ADP admitted to the cyber attack news, and is cooperating with federal law enforcement to investigate the incident.

Overview of ADP W2 Problems

The ADP security breach was announced in the first week of May, after U.S. Bank notified a small number of employees that their taxes and salary data may have been compromised.

ADP explained that the hackers exploited the fact that numerous companies make their employees’ payroll information available online. This makes the ADP W2 forms easier to download whenever taxes are due, or if an employee needs to apply for a loan.

Companies provide a specific “company registration code” to employees who want to sign up for the online services. The employees then use that code, along with personal identification information like a Social Security number and birthday, to sign up online.

The ADP hackers managed to collect some company registration codes from unsecured websites, and paired the codes with stolen personal information.

“The combination of an unsecured company registration code and stolen personal information enabled the fraudulent access to the portal,” ADP told CNN Money in a statement.

ADP said that there was no indication of their own computers being hacked, and indicated that its clients were to blame for not adequately safeguarding their document sharing features for their ADP payroll.

The ADP W2 attack is one of the latest examples of cyber attacks in which hackers have gathered personal identification information to sell on the black market. Most of the ADP W2 information will be sold to fraudsters or identity thieves, who will use it to commit various forms of theft and fraud.

At this point in time, ADP and investigators are still assessing the damages done by the cyber attack and are warning potential ADP victims.

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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