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  • NY Payroll Company Vanishes With $35 Million

    Posted on Nibbled To Death By Ducks Comment on the AskWoody Lounge

    Home Forums Code Red – Security/Privacy advisories NY Payroll Company Vanishes With $35 Million

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      • #1948676 Reply

        MyPayrollHR, a now defunct cloud-based payroll processing firm based in upstate New York, abruptly ceased operations this past week after stiffing employees at thousands of companies. The ongoing debacle, which allegedly involves malfeasance on the part of the payroll company’s CEO, resulted in countless people having money drained from their bank accounts and has left nearly $35 million worth of payroll and tax payments in legal limbo.”

        More at: https://krebsonsecurity.com/

        This is what comes of outsourcing any of your company’s vital machinery.

        I can personally attest to this in two cases:

        1. Several years ago my wife started working for a Big Data outfit as a contractor. The Big Data outfit had not only outsourced their payroll, but outsourced it to the Philippines. In a screw-up of monumental proportions involving the Big Data Company, the contract agency, and the offshore payroll outfit, she spent her entire first week trying to get this unsnarled, and missed getting paid by .02 microseconds; it was a mess.
        2. Some years earlier than that, she was going to work for a US govt. contractor, but had to go through the Security Clearance Rag before she even stepped into the place. She’d had very high security clearances before this for some VERY exotic projects with no sweat. THIS time:

        A) The outfit charged with clearances (yes, US govt. ones!) was outsourced to India!

        B) They botched everything; they couldn’t find half her records, were unintelligible in English, and couldn’t find their &^% in a brightly lit room with both hands.

        After three weeks of three-way wrangling, she finally just told them to “put it in a cool, dry place”.

        Moral: If you want something critical done right, don’t outsource it, period.  (And certainly not govt. security checks to offshore outfits!) Remember, you can only choose any two of the below:

        quality-triangle-small

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      • #1949478 Reply
        MrJimPhelps
        AskWoody_MVP

        The outfit charged with clearances (yes, US govt. ones!) was outsourced to India!

        A background check for the purpose of granting a government security clearance should never be outsourced to a company which is located in another country. This sort of background check should be done either by federal employees or by a certified government vendor located in the country who specializes in that kind of work.

        Group "L" (Linux Mint)
        with Windows 8.1 running in a VM
      • #1949521 Reply
        anonymous
        Guest

        Hello “Nibbled and Mr Phelps!! Love Woody’s and people like you guys.

        Well, What can I say??? When a company goes for the bottom dollar, or tried very hard to cut costs and maximize profit (for the few on top) Something like this can happen. I must say this, ‘serves them right”. Instead of hiring people in this country, putting Americans to work some companies cut to the bottom line no matter what.

        I remember years ago the Chinese were blamed for making a bad product. China objected, and said they were following the design specs of that product as it was given to them. So apparently some companies in an effort to save even more money for themselves, they cheated and cheapened the product down and figured on blaming the other manufacturer for the lessened quality and got caught!

        Mr. Phelps, I enjoy your various comments, washing machines, Chevrolet headlights. Can you consider starting a post on refrigerators or refrigerant devices?

        • #1949798 Reply
          MrJimPhelps
          AskWoody_MVP

          Mr. Phelps, I enjoy your various comments, washing machines, Chevrolet headlights. Can you consider starting a post on refrigerators or refrigerant devices?

          I have never tried to fix a refrigerator or other refrigerant device; I wouldn’t have a clue how to start. For this reason I’m not the guy to start such a post.

          You can start a post like that, if you like. All you need to do is log in before creating the post.

          Group "L" (Linux Mint)
          with Windows 8.1 running in a VM
      • #1950406 Reply
        geekdom
        AskWoody Plus

        Hacked from within. I imagine it happens with much more frequency and on a larger scale than in the past. I also imagine many companies do not disclose any information regarding the hack preferring to keep the amount, the perpetrator, and the method a private matter.

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      • #1992119 Reply
        jayinalaska
        AskWoody Plus

        From the Krebs on Security web site, an interesting and frightening article about the ongoing repercussions from the fraud related demise of MyPayrollHR.

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