Submitted via IRC for SoyCow2718
NY Payroll Company Vanishes With $35 Million
This communique came after employees at companies that depend on MyPayrollHR to receive direct deposits of their bi-weekly payroll payments discovered their bank accounts were instead debited for the amounts they would normally expect to accrue in a given pay period.
To make matters worse, many of those employees found their accounts had been dinged for two payroll periods — a month’s worth of wages —leaving their bank accounts dangerously in the red.
The remainder of this post is a deep-dive into what we know so far about what transpired, and how such an occurrence might be prevented in the future for other payroll processing firms.
(Score: 3, Informative) by sjames on Saturday September 14 2019, @05:59AM
The more I think about it, the more this looks like MANY thefts. Two weeks ago (or so), MyPayrollHR correctly transfers the payroll from it's customers to Cachet’s holding account. Cachet correctly disburses those funds to the many employees of MyPayrollHR's customers.
So far, so good. Then MyPayrollHR diverts this weeks payroll from it's customers into a private account (theft), then sucks millions out of Cachet's holding account (another theft), so then then the employees' money from last pay period gets sucked out of their accounts into Cachet's (many more thefts, this time by Cachet or their bank). Then the employee's money from the previous pay period gets sucked out too. Cachet says that one was an error, but it looks like even if the error is nullified, there is still a large number of thefts from the employees.
Cachet certainly got robbed, but the employees bear no responsibility for that, so why was their money touched at all? Shit rolls down hill may be a general description of the way things tend to work, but it's not a valid defense for theft.