Automatic Data Processing Inc. (ADP) said its security team
detected an intrusion in one of its benefits administration
systems, which it believed affected only one, unspecified
client.
The breach is the latest among several recent hacks, including
high-profile intrusions at Citigroup Inc. (C) and Sony Corp. (SNE,
6758.TO).
Wednesday, the company, which is one of the biggest payroll
processing and human-resources outsourcing companies in the
country, said it is investigating the breach, which occurred on a
nonpayroll platform from a recently acquired benefits
administrator, Workscape. The platform is no longer sold by ADP but
continues to function on a legacy basis.
ADP has contacted the unnamed client and said it would continue
to help mitigate any problems arising from the incident.
Because it is cooperating with law enforcement in the case, ADP
said it couldn't provide more details. The company stressed that
protecting its clients and their data from "has been, and always
will be, a top priority."
In general, ADP's performance has stabilized after the economic
downturn caused clients to lay off workers and, as a result, seek
fewer of the company's services. In its latest quarterly results,
profit improved modestly as expected while the company reported
strong client revenue retention during a key period.
Shares were recently down 1.9% at $51.66 in the midst of a broad
market downturn. The stock has risen 12% since the start of the
year, better than the market at large.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com