Cachet Financial Reeling from MyPayrollHR Fraud
Summary: Cloud payroll provider MyPayrollHR shut down and disappeared with $26 million in customer payroll deposits, leaving payment processor Cachet Financial Services to fund employee bank accounts anyway and absorb the loss. On Oct. 23, less than 24 hours before a weekly payroll run, Cachet told customers its bank, The Bancorp Bank, would no longer accept the risk and required pre-funding by direct wire instead of ACH, a process Cachet said would continue until further notice.
Bottom line: Cachet processes roughly $150 billion in payroll annually for more than 110,000 employers, and payroll experts quoted in the article say the bank's action may soon put the 22-year-old company out of business - leaving payroll bureaus and the employees they pay to absorb the disruption.
Read the original at Krebs on Security ↗
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