Wednesday, September 30, 2009

Hackers Breach Payroll Giant, Target Customers

Brian Krebs writes on Security Fix:

Hackers last week apparently used stolen account information from a New Jersey company that provides online payroll services to target the firm's customers in a scheme to steal passwords and other information.

Morrestown, N.J. based PayChoice, provides direct payroll processing services and licenses its online employee payroll management product to at least 240 other payroll processing firms, serving 125,000 organizations.

Last Wednesday, a number of PayChoice customers received an e-mail warning them that they needed to download a Web browser plug-in in order to maintain uninterrupted access to, the portal for PayChoice's online payroll service. The supposed plug-in was instead malicious software designed to steal the victim's user names and passwords.

Unlike typical so-called "phishing" scams -- which are sent indiscriminately to large numbers of people in the hopes that some percentage of recipients are customers of the targeted institution -- this attack addressed PayChoice customers by name in the body of the message. The missives also included reference to each recipient's user name and a portion of his or her password for the site.

In a statement e-mailed to Security Fix, PayChoice said the company discovered on Sept 23 that its online systems had been breached. The company said it immediately shut down the site and instituted fresh security measures to protect client information, such as requiring users to change their passwords.

More here.


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