ADP Payroll: Scammers Breach Security, Consumers at Risk

ADP, a company that provides payroll, tax, and benefits administration for hundreds of thousands of companies across the country, has been the victim of a cyber attack.

ADP payroll services have been exploited, potentially allowing scammers to commit tax fraud using the information of employees whose companies use ADP payroll.

Tax fraud scammers gained access by finding a weakness in an ADP payroll online registration portal, allowing them access to employee tax information.

Before the ADP payroll security breach, scammers have targeted companies like Snapchat in an attempt to gain the personal information of employees. The scammers often use the information to file fraudulent tax returns.

By targeting ADP payroll data, scammers have access to not just one company, but the hundreds of thousands that use ADP payroll services. Across America, most working adults have at one point or another had a paycheck distributed by ADP payroll services.

ADP Payroll Data Breach May Affect Bancorp Employees

One large company that uses ADP payroll services is U.S. Bancorp. The company has around 64,000 employees, but not all of these employees have become victims of this latest tax fraud scam.

In order for scammers to use to an employee’s tax information effectively, they need to also have access to a victim’s identity. This means that for an employee to be in danger of tax fraud through this scam, they must first have been a victim of identity theft.

U.S. Bancorp first became aware of the ADP payroll cyber attack on April 19, after this year’s tax deadline. However, scammers may have already filed fraudulent tax returns for the company’s employees.

While ADP has confirmed that U.S. Bancorp was affected by the security breach, it has not confirmed which other companies have been placed at risk.

After the security breach was publicized, ADP released a statement to the media detailing the investigation so far:

“Any potential exposure of W-2 information was limited to individuals who have had their personal information compromised previously (unrelated to ADP) based on ADP’s investigation to date. Publishing unique registration codes to an unsecure website is not common practice. ADP actively advises against this practice, notifies clients of the potential risks and has temporarily disabled access to the registration portal for those clients that continue to publish company registration codes in this fashion.”

If the company you work for uses ADP payroll services, and you receive an ADP paycheck or W2 tax form, you are at risk of becoming a tax fraud victim. You may be able to join a class action lawsuit investigation, which could lead to a lawsuit and potential compensation for losses suffered as a result of this security breach.

If you believe that you may be a victim of tax fraud through this ADP payroll security breach, there are a few steps you can take. You can notify the IRS by filing an IRS Form 14039, the Identity Theft Affidavit. This form puts the IRS on the alert for your Social Security number and other information that may be included in fake tax return.

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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