Question

Payroll Fraud

Forum|Forum|3 years ago
August 11, 2022
14 replies
0 views

Our Employees direct deposit in QB was hacked/changed and QB funded the deposits to errored/fraud banks. All deposits for different people went to the same bank (obvious fraud). We found out about it on payday. I spent hours on the phone with QB trying to get them to stop or reverse direct deposit. They could see the banks and routing had been changed.

Then we got our bank to stop pay to QB payroll so we could pay our employees. Then this week QB has us locked out of payroll and we have sent everything to the Fraud email and even though it says a reply will be provided in 48 hours it wasn't. We got an email from QB demanded the money they funded to the fraud accounts.

So we are using a system that offers no security to businesses or employees for their payroll. QB should definitely be able to reverse a charge or not chargeback a business who was a victim of fraud. We have all the police reports, cyber crimes info etc and can't a hold of a human at QB who can get this issue resolved. MEANWHILE QB is paying out to fake banks in the UK with no security whatsoever.

ITS ABSURD.

QuickBooks Online Payroll

J

Just_me

Sadly, it's happening a lot. If you search the community, you'll find MANY others that have had this happen. QB really doesn't seem to care much. Those working for QB, that respond to these threads don't provide a lot of help, because they can't. They will just tell you to contact the fraud dept.

You can also report QB to the BBB. It may not do a lot for you or your company, but the more complaints the BBB gets about Intuit/ QB, the better. At some point, it will get to where it will be investigated.

I'm sorry it happened to you and y our company. QB is REALLY dishonest about it all.

Good luck.

A

Archie_B

I am aware of how important timely and effective payroll processing is for your employees, CTurner2022.

With regards to your payroll account being on hold, there's a possibility that the account needs to be reverified. Please know that we place a great focus on the safety and security of your accounts and that we don't tolerate any fraudulent behavior.

Our support team has already been in touch with your accountant. I'd suggest reaching out to them for them most up to date information.

Thank you so much for the patience. We'll be here if you still have other payroll concerns. Take care and have a wonderful day!

C

cristyturnerAuthor

Archie,

The issue of my complaint was that QB Payroll doesn't offer a safeguard for fraud. There is no security to protect a business from being compromised in the payroll platform. Once compromised your system didn't even catch direct deposits that all went to the same account. No email, no call, no verification on the change, no security.

And, I don't employ an accountant. I should be the only person speaking about my business to QB. And all I know is that I sent an email to Intuit Fraud on Monday with a 48 hour response and no one has responded.

I phoned QB about the fraud on 8/5 and QB has yet to attempt to reverse the fraudulent deposits. That money will be long gone by the time you all figure out your next step.

Today, I phoned ADP -they answered, and offered complete customer service in real time.

J

jmichel1

Again, we had the same issue---- multiple direct deposits into a single fake account even thou our employees are in different states and not related.

J

jmichel1

We had the same situation this month. Hackers got into the QB system and changed employees banking information so that direct deposits went to the same fake account- they swept the money and closed the account before QB could pull the money back. QB really should have a security feature- how would it make sense for multiple employees in different states to have their paycheck deposited to the same bank account? QB did not return our money, we are out thousands.

L

lisacole

This happened to us as well. We process payroll as a 3rd party for several clients. Two of my client's accounts were hacked via my login. Now QB is refusing to unlock their payroll accounts with no proof that their 'fronted' payroll even took place. In both of my situations, my clients managed to stop the money from coming out of their bank accounts, but QB says that since they front payroll and then seek 'reimbursement' from the employer before their accounts can be reinstated they need to pay back several thousand dollars. I would love to hear if anyone has resolved this yet or has been forced into paying Intuit back with no proof. When were we informed, as clients of QBO, that QBO 'fronted' our payroll? What protections does QBO have in place for fraud? In at least one of the cases that happened to us, the client caught it almost immediately, but even though it takes 24 hours for QBO to process payroll, this fraud was completed and 'funded' in moments (according to QBO).

A

AileneA

Hello, lisacole.

I've checked with the backend team, and it looks like the Reversal request had been submitted but has come back unsuccessful.

In this case, I already inform the Payroll team about your experience, and you may reach out if you have questions.

To contact them directly at their phone number, you can call the phone number listed in this article: QuickBooks Payroll Support.

The Community is always here to listen to whatever concerns you have. I look forward to helping you out in the Community space.

D

d908057

This exact scenario just happened to me. I'm at a loss and feel stuck between the client and QBO. QBO is saying my email must not be secure and this is how it happened. This is simply not the case. They are attempting to do a reversal but are saying it can take up to five days and no guarantee. They are saying the client will be out the money. This is my one and only client on QBO and I wasn't a fan before, but now am so frustrated and not sure where to turn. If anyone has any guidance I would appreciate it!

MariaSoledadG

I know how you'll want to be this taken care of. I'll provide additional information about the security breach, d908057.

Intuit ensures to provide the best security practices to protect your information against security risks. This is one of the reasons why the processing of reversal may take a little bit longer than the other normal procedure. Also, It's not about that we don't guarantee reimbursement of funds, we always do. We just need a few processes so we'll able to trace and collate some information that is needed.

However, you can always reach out to our support team if you have any questions that you feel you aren't sure of. We're always right here to assist with all your concerns.

Click the (?) Help icon and enter Talk to a human (then type it again when prompted).
When asked by the bot, enter your concern
Select I still need a human, then proceed with Contact us or Get help from a human.
Choose either Chat or Callback.

To know more about QuickBooks' security and privacy of your data, go through this global article that works just like the same with the US version: Security.

You can always comment below if there's anything else that you'd like us to help with. We're here to make sure to further assist you.

P

paumcv

It has also happened to me. It is odd that it is the same pattern of fraud. When did Intuit first become aware of this? Did they take any action at the time they recognized the fraud scheme to add any security because of it? Did they warn customers of this specific scheme? How pervasive is it? How many QB users have experienced it? Since it is the same scheme involving payroll and apparently not affecting other disbursements, could there be some easy fix? Could it be someone within Intuit getting into customer accounts? Intuit told me that the cannot identify the IP addresses where the log-in originated, although there is a log of the activity. That does not make sense. Could they capture it if they wanted? Have they tried doing that to stop such a pervasive fraud? Does Intuit have any liability? Is there a basis for a class action case?

M

Mark_R

Hi there, @paumcv.

I understand you're worried about the possible security breach of your account, and we don't want you to feel this way. Please know that Intuit always makes sure your account is secured and protected.

In your case, I highly recommend contacting our QuickBooks Support Team again. I understand you've already contacted them before but they're the best support group that can dig deeper into this potential fraud.

I'm adding this article to learn how to recognize official Intuit correspondence and websites: Identify suspicious activity, phishing scams, and potential fraud.

Our Community forum is always open to help you again if you have other concerns with QuickBooks. Have a great day!

P

paumcv

It seems like there would be a fairly easy fix to it. There is the direct deposit authorization form. It could be required to be filled out (mandatory fields) and then secured (with a passcode, pin, dual authorization, or other method), and then no changes allowed on the direct deposit until a new authorization is completed. Wouldn't that be a fix to this recurring fraud?

B

bla2001

This happened to me as well.

I recognized that my last three payroll direct deposits were fraudulently redirected to a different bank account.

I am out tens of thousands of dollars. As a small business owner that is HUGE.

I have had numerous chats and calls with Quickbooks and have been getting different answers on this situation and avoidance of responsibility for the security breach. In many cases I was put on hold for close to an hour only to be told that a supervisor would contact me. Well no supervisor ever did.

A follow-up email with their fraud department suggested that all future correspondence be to their lawyers.

This has been reported to the police and is under investigation.

It has caused me great financial hardship and has affected my health and well-being as a result.

L

LindaDuhon

just happen to me, there got 5000.00 dollars out of me and QB says I probably won't get the money back, guess I can always lawyer up!

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JoeandSav

Please let us know if your able to solve this, this happened to us as well. Except they tried to take $15000 from us. We caught it right away and locked our bank account but "intuit" instantly deposited to them. So now intuit collections is now calling me and trying to say I'm on the line for $15000. Even though I called them and reported the fraud ASAP. It still took them three days to give me a call back, terrible fraud prevention program. I hope it doesn't go the lawyer route and reporting them too BBB. Please let us know what you find!

S

selmeczy

The exact same thing happened to me as well. Intuit reacted exactly how everyone else described it. I am thinking that there should be a way to join forces and come up with a plan to help Intuit to improve their software and/or their customer support/fraud department to prevent these incidents from happening over and over again. Anybody has any suggestion? You may contact me directly at [email address removed]

J

JerryMac

We just found one employee who got hacked with his account number. Unfortunately he has not been checking his bank statements and this happened last October. Why weren't we contacted that there are issues!! How does an account get changed without a contact about "are you sure"!!! If there account is changed IN QB I have to enter my pin code, so why if all of sudden an account changes there is not an alert that there was no pin entered! Disgusting.

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Annie L

ITS TIME FOR US TO COME TOGETHER AND FILE A CLASS ACTION LAWSUIT!!

Our company had an employee go into independent subcontracts profiles (Direct Deposit) and change the banking information to her bank account - then sent herself funds; then went back into the subcontractors profiles and changed it back to the correct one.

She did this numerous times to numerous contractors - with NO SECURITY MEASURES in place to alert the Admin on the account. The end total was over $200K, as a small business it just about sunk us! On top of that, this was about 50% of our EIDL Loan funds.

Also, I believe Intuit has since changed this policy by requiring an Admin login to change banking information along with a PIN# ...is that correct? If so, they have officially admitted negligence.

I would like to join forces and file a class action lawsuit against Intuit ....anyone else on board? Please let me know as soon as possible.

Looking forward to the fight for what it right,

Annie

[email address removed]

H

Hydroshieldnc

I am interested. The same thing happened to me. Intuit Fraud employee was very casual about my case. She didn’t know what is could be done. Please contact me

F

floortexas

Same exact thing happened to us. Now QB wants us to wire the funds for the fraud? I even contacted QB the day before the debit funded because I caught it. Ridiculous.

T

Taxlady51

I'm just curious if any of these fraudulent payouts have come from a QuickBooks Desktop prepared payroll. I've noticed many stating they were using QBO. I have NEVER liked QBO and have told clients if they want us to prepare their payroll we will be doing it via QuickBooks Desktop and just post the checks and liabilities in their online file. I'm probably loosing a potential payroll client because of the worry about ACH payments such as direct deposit payroll unless I can assure them that my processing their direct deposit payroll will be secure. I'm not about to take on the liability in case something happens and am now very worried about the clients I currently process direct deposit payroll for.

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Annie L

I have done several internal audits for clients and have found the issue to be with both Desktop and Online. Both platforms allow users to change the bank information (to whatever bank they want) there is NO VERIFICATION on the receiving bank side to cross reference name, SS#, etc ....this is embezzlement waiting to happen in my opinion.

Intuit did RECENTLY change the ability to change bank information to Admin users only then sends a code to the email or SMS text - BUT what if the Admin user is the thief?? This is generally the case in smaller business settings.

I would REALLY like to start a Class Action Law Suit naming Intuit - Once they made the security change to Admin users only, they admitted fault in their security settings.

Thoughts??

Annie

amlresourceLLC (insert @) gmail (insert .com)

S

selmeczy

It would make sense. Let me know if that happens.

Endre Selmeczy

email: [email address removed]

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