Article

2019-09-13 -Lurid Crime Tales-

NY Payroll Company Vanishes With $35 Million

[KREBSONSECURITY] 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.

Unlike many stories here about cloud service providers being extorted by hackers for ransomware payouts, this snafu appears to have been something of an inside job. Nevertheless, it is a story worth telling, in part because much of the media coverage of this incident so far has been somewhat disjointed, but also because it should serve as a warning to other payroll providers about how quickly and massively things can go wrong when a trusted partner unexpectedly turns rogue.

Clifton Park, NY-based MyPayrollHR ‐ a subsidiary of ValueWise Corp. ‐ disclosed last week in a rather unceremonious message to some 4,000 clients that it would be shutting its virtual doors and that companies which relied upon it to process payroll payments should kindly look elsewhere for such services going forward.

Posted by Fred 2019-09-13 00:00|| || Front Page|| [11124 views ] Top

#1 Hey, they never said it was your payroll.

Su casa es mi casa!
Su dinero es mi dinero!

Posted by Lex 2019-09-13 02:18|| 2019-09-13 02:18|| Front Page Top

#2 Seems to have behaved like a bank.

and it's gone...

Bet they were using the payroll money to speculate in treasury or some such and got burned. A few pension companies used to do that but it got banned over here in the UK.

Posted by Bright Pebbles 2019-09-13 04:17|| 2019-09-13 04:17|| Front Page Top

#3 Hmmm...New York. You know that you really really need to be careful doing that in New York. You might, just might have had your hand in a company that belongs to people who don't need the government to provide justice. No due process. No appeal.

Posted by Procopius2k 2019-09-13 06:55|| 2019-09-13 06:55|| Front Page Top

#4 "Take the Cannoli”

Posted by Mullah Richard 2019-09-13 10:07|| 2019-09-13 10:07|| Front Page Top

#5 They probably didn't pay the payroll taxes they were with holding and like Bright Pebbles said were dong everything but the right thing with other peoples money.

Posted by Phaick Uneretle6310 2019-09-13 14:53|| 2019-09-13 14:53|| Front Page Top

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