Some US Bank workers may be victims of tax fraud or identity theft after a data breach of ADP’s payroll portal exposed confidential W-2 information to cyber thieves, according to KrebsOnSecurity.
ADP is a third-party service provider that offers payroll, tax and benefits administration to its vast clientele of over 640,000 companies around the world.
The cyber attack was discovered last month by ADP client US Bank, which said that “a small population” of its 64,000 employees had its tax and salary data stolen from the payroll vendor portal.
US Bank Addresses ADP Data Breach
US Bank confirmed the ADP cyber attack incident, saying the company is not sure how cyber thieves originally obtained employee personal information to create fraudulent accounts with ADP.
In a signed letter by US Bank executive vice president of human resources, Jennie Carlson addressed to what was described as a “small population” of the company’s workforce that may have been a victim to the ADP data breach.
The letter to the affected parties went on to say that the incident originated because ADP offered an external online portal that has been exploited. For individuals who had never used the external portal, a registration had never been established. Criminals were able to take advantage of that situation to use confidential personal information from other sources to establish a registration in your name at ADP. Once the fraudulent registration was established, they were able to view or download your W-2.
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Cyber crooks took advantage of the available information and used them to create fake ADP accounts to obtain confidential W-2 information.
The W-2 hack has been popular with cybercriminals this year because the tax documents have all the information needed to file false tax returns and commit other identity theft-related crimes and this, not the first time third-party providers like ADP were used as a channel for tax fraud.
Last February, months before the year’s tax filing season drew to a close, the IRS issued a warning stating a 400 percent increase in identity theft scams that targeted tax information.
According to the FBI, from October 2013 through February 2016, schemes that made use of different techniques to steal such information for tax fraud purposes victimized over 17,600 people, amounting to billions in losses.
ADP officials said, “ADP has no evidence that its systems housing employee information has been compromised. Additionally, the company is working with a federal law enforcement task force to identify the fraud perpetrators.”
If you believe you were a victim of tax fraud or identity theft as a result of the ADP payroll security data breach, you may have grounds for legal recourse. Please let us hear your story today!