NY Payroll Company Vanishes With $35 Million
Summary: MyPayrollHR, a Clifton Park, NY payroll processor serving some 4,000 clients, shut down after submitting a Sept. 4 instructions file that redirected roughly $26 million in client payroll funds to an account it controlled at Pioneer Savings Bank instead of Cachet Financial Services' holding account. Cachet's reversal requests were processed twice by some financial institutions, debiting employees for a month's wages, and NatPay, the tax-withholding handler, says it was stiffed more than $9 million; the FBI, federal prosecutors in New York, and the state Department of Financial Services are investigating, and CEO Michael T. Mann did not return Cachet's call.
Bottom line: Cachet says its systems are built to stop outside hackers, but a single changed funding instruction from a trusted client moved $26 million and left employees with overdrawn accounts - the control gap was a partner turning rogue, not an intrusion.
Read the original at Krebs on Security ↗
- Topics
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