What is the FDIC for? Is it only for if actual banks don’t go belly up?
This is extremely messed up.
…but also kind of genius.
I remember something like this happening at the company I worked for back in the early 80s, when direct payroll deposit was only a couple years old. Fortunately, I was even then computer-savvy enough to know not to trust something this new and this complex, so I was still getting paper paychecks. But lots of other people had no money or negative money as the withdraw hit twice, then took a couple of days to get deposited three times, or some such nonsense. (I think the first time they ran the transfer in the wrong direction, then tried to reverse it, so you wound up with -2 paychecks instead of +1 paycheck.)
Brian Krebs is amazing. I haven’t been reading his blog as often lately, but I still check it a few times per month. Saw him speak one time at a conference and it was fascinating.
Somebody’s about to get pulled out of a chaise lounge, with a drink in hand, by the feds.
This is good for bitcoin.
slaps the roof of the truck…
If you read the entire article,Cachet Financial was the fiduciary for holding the money and they let the transactions go through even though there were problems with the file. They then reversed the reversals which leads me to believe that they screwed up letting the transactions through and they know it.
The CEO of the payroll company is +++Michael Mann+++
A restaurant in my city just closed down because the entire staff quit after this happened to them. Apparently there were a lot of issues with the owner and when this happened they all quit.
Why is this story not published by any national news organization? The only information I can find comes from local TV news stations.
Steal $400 from a cash register and you’re a criminal. Steal $35 million from the bank accounts of people who run those registers and you’re a smart executive.
My company used this payroll company and not only did they disappear, they reversed the payment of the last two paychecks for everyone in the company. Some people were put into the negative in their checking accounts. It is a real mess.
No. Frk. Way……….thats just CRAZY
This is just another reason large companies should stop outsourcing the less glamorous parts of its business to the lowest bidder.
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