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NY Payroll Company Vanishes With $35 Million

posted by Fnord666 on Friday September 13 2019, @10:56AM   Printer-friendly
from the who-needs-a-payroll dept.

upstart writes:

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.

Original Submission

 
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  • (Score: 1) by khallow on Saturday September 14 2019, @12:22PM (1 child)

    by khallow (3766) Subscriber Badge on Saturday September 14 2019, @12:22PM (#894042) Journal
    I got thinking about this.

    Any article like this that mentions the corporation and not the names of the people on the board, owners and investors, is helping them get away with it this time and next time.

    What makes you think a company like that has boards, owners, and investors? Even the CEO, "Michael T. Mann" may have been a name made up on the spot too. The next time someone calls, it might be the other CEO, John Q. Doe who answers.

    A theft that brazen is going to have an escape plan. And part of that plan is probably spreading a vast number of fake names and addresses around. Even worse, these guys probably have done this before, just not on this level.

    I recommend this Popehat blogging series [popehat.com] which talks about eventually catching one such person over a seven year period. It's an interesting case study in the tactics of scamming and the behavior that one sees in scammers. As a bonus, the scammers did some actual payroll scamming too so it's scamming in this very area.

  • (Score: 2) by Runaway1956 on Saturday September 14 2019, @01:35PM

    by Runaway1956 (2926) Subscriber Badge on Saturday September 14 2019, @01:35PM (#894056) Journal

    I didn't think the pope wore a hat. He wears a silly mitre, or some such, doesn't he? Looks about as silly as those three-cornered hats from the revolutionary war era, right?