News, Info and More…
News, Info and More…
Recent Court Documents accuse Automatic Data Processing (ADP) of forging Department of Revenue tax documents, social security numbers and Pension Fraud. The accusations and claims come from one of their top Sales Reps.
Schwartz who broke numerous National Records at ADP, alleges ADP Reps are taught by their direct leaders how to fill out and sign Department of Revenue State Unemployment Applications on behalf of their clients. ADP has over 600,000 small business clients and pays 1 in 6 Americans, so it’s no surprise that thousands of small business owners get Millions worth in penalties and fines from the Department of Revenue.
The DOR Unemployment Application also known as the DR1/RT6 determines what tax the business owner is responsible for and explains in detail the responsibilities and repercussions of the tax. The DR1/RT6 application these sales reps are signing are extremely important documents that are intended to be signed by the business owner and only the business owner.
Inside the DR1 Application it is pertinent that “whomever” fills out the form puts the correct addresses because this is where all important tax information and notices are sent. ADP Reps are said to put in ADP Tax Services Address 400 West Covina Blvd, San Dimas CA 91773 because ADP is supposed to be responsible for handling all tax related issues.
Unfortunately, the business owner doesn’t even know this and if there happens to be a notice/fine/penalty or they leave ADP many times they don’t even receive the notice until much later. In turn, the penalty and interest stack up for the Business owner who is responsible for paying the fine.
Question is how they can be responsible for any such penalties, fines or notices when they didn’t even read, attest and sign they understand any of the responsibilities? Seems if ADP should be responsible for any fine, penalty since they “Attested they Understand” and then forged the business owners’ signature.
In Fact, the application states numerous times that you attest UNDER PERJURY you are the business owner and have read and understand all the responsibilities.
If you have been affected by this, you are encouraged to call your local Department of Revenue Office and ADP
To find your DOR number click here.
Currently I work in the Financial and Real Estate Industry. Recently I met a lady who had a very interesting thing happen to her. Which sheds light on how people are affected by ADP’s Forging of Social Security Numbers. Gabriella who is my partners client divulged a very interesting story.
She has lived in Miami her whole life. She is a single mother of three children and also is on disability. She receives child support and benefits for both her and her children. One of her children is ill so she receives extra disability assistance.
Who and what is ADP?ADP (company) Automatic Data Processing, Inc., commonly known as ADP, is an American provider of human resources management software and services. As of 2010, ADP was one of four American companies to have a AAA credit rating from Standard & Poor’s (S&P) and Moody’s.
How does ADP make their money?
We pay roughly 1-6 working Americans. That’s over 26,000,000.
ADP makes money by holding the employer and employee taxes.
HR giant ADP, which provides payroll, tax and benefits administration for more than 640,000 companies, was hit hard by identity thieves this week. The perps made off with tax and salary data, according to a report from Brian Krebs—although the actual number of people affected has yet to be revealed.
The incident is an example of an increasingly sophisticated population of identity thieves, which uses complex, multi-stage attack vectors to get what they want.
Krebs explained that to access the information, the thieves used employee names from multiple firms to register accounts on an ADP external-facing web portal that employees can use to view their payroll information, including W-2s.
ADP Chief Security Officer Roland Cloutier explained that to create an account, users need to sign up using their name, social security number and date of birth—pretty basic information that can be easily lifted by skilled hackers. But to activate the account, users need a specific link and company code. The victim companies were the ones that published their signup link and code somewhere publically accessible.
“We viewed the code as an identification code, not as an authentication code, and we posted it to a Web site for the convenience of our employees so they could access their W-2 information,” said Dana Ripley, a spokesperson for one of the unfortunate victims, U.S. Bank. “We have discontinued that practice.”
Jennie Carlson, executive vice president of human resources at U.S. Bank, penned a letter to “a small population” of affected employees explaining the situation:
“Since April 19, 2016, we have been actively investigating a security incident with our W-2 provider, ADP…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.”
The personal information needed to open the account was not stolen from ADP, Cloutier stressed. But the tactic is an increasingly prevalent one, according to Carl Wright, EVP and general manager of TrapX Security.
“The attack on ADP by cyber thieves is an example of an increasingly sophisticated hack called a FlowJack,” he said via email. “Hackers can penetrate an organization and gain an understanding of the internal workflow and the necessary credentials to hijack target assets. This interception of critical workflow, or FlowJack, enables hackers to steal important data and then intercept and divert the flow of money—in this case, citizens’ tax refunds.”
Adam Levin, chairman and founder of IDT911, told Infosecurity that while ADP isn’t saying much about who the victims are, the overall number of people affected is likely to be significant.
“As ADP works with more than 640,000 companies, this may only be the tip of the iceberg,” he said. “W-2 data is a hot commodity for identity thieves because it contains the type of sensitive personal information necessary to file fraudulent federal and state tax returns for the purpose of securing tax refunds in the names of victims. This puts a huge bullseye on payroll and human resource companies like ADP that handle such a goldmine of personally identifiable information.”
An executive whistleblower has filed suit against payroll giant ADP, Automatic Data Processing ($ADP), accusing senior management of long-running state and federal tax crimes and pension fraud. The case was filed by David Schwartz, a top-performing national salesman, who was fired after questioning the legality of ADP’s policies, then reporting the company to the SEC and FINRA.
The ADP whistleblower, fired for standing up to illegal business practices at the payroll giant, launched ADPFraud.com, a website documenting the federal crimes he reported to the SEC and FINRA Posts from the new site are being shared across social media by thousands of angry ADP customers and employees, expressing their dissatisfaction with the company, and uniting around his message.
ADP has filed another lawsuit against the whistleblower who was illegally fired by the payroll giant for reporting its federal crimes and poor ethical behavior he witnessed to the SEC and FINRA. In its latest lawfare move, the new case filed in Florida alleges that whistleblower David Schwartz, who went public with the evidence the company initially sued him to return, has made ADP “suffer,” led ADP clients to quit the firm and led its competitors to poach business. Woops.
Whistleblowers are reporting how ADP defrauds customers, employees, and, even, strangers, thanks to ADPFraud.com, an information portal where those wronged by the company are adding their personal information and testimony to build a national database of victims to its crimes. The website was created by a top salesman for the company who blew the whistle on ADP’s shoddy business ethics.
This site was created to help victims of ADP’s crimes and warn others. Join other victims of frauds, together we will fight back! Contact us if you have been wronged by ADP Payroll Services, Retirement Services, Total Source Division, Tax Fraud, Social Security Fraud, Undisclosed and Excessive Fees, Unauthorized Charges, ADP Partner Programs, FLSA violations and ADP Employee Victims.