Saturday, October 17, 2009

PayChoice Suffers Another Data Breach

Brian Krebs writes on Security Fix:

Payroll services provider PayChoice took its Web-based service offline for the second time in a month on Wednesday in response to yet another data breach caused by hackers.

Moorestown, 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. On Thursday morning, the company sent a notice to its customers saying it had once again closed - the portal for PayChoice's online payroll service -- this time after some clients began noticing bogus employees being added to their payroll.

"After investigation, we determined that valid user credentials for an Online Employer user were used in an unauthorized manner to add these fictitious employees in an attempt to have payments made to fraudulent bank accounts," the company said in an e-mail alert to their clients sent Thursday.

More here.


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