ADP Data Breach Affects U.S. Bank Employees

Over one thousand U.S. Bank employees may be vulnerable to identity theft since a security breach affected ADP, a business outsourcing service that processes payroll for many companies.

More than 67,000 employees work for U.S. Bank, and the ADP data breach that compromised W-2 information was estimated to affect about 2 percent of them.

Of major concern for these individuals is that this is not the first time their personal data has been compromised.

The thieves in the ADP data breach used previously stolen data to set up accounts on a separate ADP portal in the names of the targeted individuals. These individuals had already been the victims of identity theft (unrelated to the ADP data breach), and hackers were able to gain more access to their personal information through the ADP data breach.

According to ADP, to access registration on their separate online W-2 portal, the identity thieves would have needed both the birth dates and Social Security Numbers of employees to register for an account on the ADP portal.

Hackers who were able to access information from the ADP data breach may go on to commit tax fraud. Since the hackers gained access to employee W-2 information, they may be able to file a tax return in the identity theft victim’s name.

Individuals who were victims of similar W-2 data breach events have reported incidents of tax fraud after their personal information was stolen.

While most of us scramble to get our taxes done by April 15, it is actually quite common to file an extension for a tax return. Approximately ten percent of Americans file for an extension.

If some of those who filed for an extension had not filed their tax return prior to the ADP data breach, the hacker could submit a tax return in the identity theft victim’s name and have the refund money sent to him or her instead.

The affected U.S. Bank employees will have to worry about the risk of repeated identity theft, tax fraud for tax returns submitted in their names, loss of any refund money due, and more as a result of this situation.

Following the report of the ADP data breach, the shares for U.S. bank were down about 1.3 percent. ADP’s shares fell about 0.7 percent following the disclosure.

Tips for Those Potentially Affected by the ADP Data Breach

U.S. Bank employees who may have been targeted in the ADP data breach should consider filing a form 14039 with the IRS. Form 14039 is an Identity Theft Affidavit. This affidavit will alert the IRS to flag any return that is filed using your Social Security Number. They can then keep in touch with you about any potential tax fraud activity that may surface.

Credit experts also advise identity theft victims to monitor credit reports. You can access a free report yearly from each of the three main credit reporting agencies on www.annnualcreditreport.com. Victims may also consider signing up for real-time credit monitoring with a company who will send an alert of any suspicious activity as it happens.

Additionally, identity theft victims can participate in an ADP data breach class action investigation that may seek damages on behalf of individuals who have been affected by the security 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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