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Paychex direct deposit paystub is identity theft risk
Posted on Aug 3, 2006 by Tom Fragala
Do you get paid via direct deposit through Paychex? If so, take a look at your paystub/statement. I looked at one recently and noticed that it shows the full checking account number! That puts the account holder at significant risk. All a fraudster needs is to find out or guess the name of your bank and they can pretty easily pull funds right from your checking account.
How is that possible? The ABA routing number for every bank is well known. So with the account number and routing number one can easily perpetrate a fraud on your account. Yes, it is that easy. What kind of fraud? Well, someone could simply order checks from a third party check service and write against your account. Even if you catch it, it’s a pain in the butt and causes serious repercussions for you with the check verification services. And what if you are traveling or busy and don’t see the fraudulent transactions? Consumer protection laws on your checking account are no where near as good as for your credit card. (And forget FDIC insurance. That only protects account holders from bank failure, not fraud.)
So, Paychex, why not put an “X” through all but the last 4 digits? I hear Paychex is a very good company. I hope they will consider redacting sensitive account numbers from direct deposit statements.
The take away for you: Don’t leave your direct deposit statement lying around! Shred it or keep it safe.
Filed under: Data Breach, Identity Theft, Tips
Comments
Elizabeth Potter on Sep 14, 2007
This was an unfortunate practice by many payroll companies up until Sarbanes Oxley.
Paychex has since, and for a very long time now, only printed the last 4 digits of the account number on the checks.
Daxxxx Xxxxxxx on May 19, 2008
My paystub as of 15 May still has the full account numbers showing :(
DAVE7007 on Nov 17, 2008
Pay Chex is a nightmare if you ever get your card stolen or theft or just general customer service...they are terrible...and I have found they lie. I am filing a complaint with the SEC against them. The story is to long but i would be very careful dealing with any third party that handles your money.
Steve on Nov 18, 2008
Paychex in my experience is a joeke..and they are a big publicly traded company. But they do lie. They lie about when you will get your card in the mail and when you are getting your funds sent in a check as they replaced card holder services card with a Chase card now. I know someone who is filing a police complaint against them. There payroll sepcialists no nothing....I would be very careful and I would not trust paychex..
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