More and more companies are outsourcing business services to third parties in order to cut costs and operate with a leaner in-house staff. Unfortunately, sending data–particularly about payroll–offsite can open the company up to hackers and thieves.
The biggest business service theft story happened last year, when it was revealed that the CEO of MyPayrollHR had scammed $35 million in payroll from companies who trusted him. 49-year-old Michael T. Mann confessed to scamming his MyPayrollHR clients of millions in an attempt to stay one step ahead of the FBI in an ongoing “shell game” of fraud and fake businesses.
If you are a business owner, be very careful about vetting outsourced labor, especially payroll companies. Sure, it might be cheaper to outsource this business service, but the potential for disaster is too big to ignore. Any company that handles sensitive data–such as Social Security numbers or passwords–or money should be thoroughly researched to make sure it is above board.