Safe deposit: assuring pay card security
From the March 2009 issues Ceridian Connection.
With the recent $9 million ATM heist linked to the computer system for RBS WorldPay and other similar ATM break-ins, many of us are left to wonder about the security of PIN-driven debit cards. As more companies consider the use of pay cards for employee compensation, security issues may be a cause for concern. On the other hand, a recent New York Times article referred to laborers in New Orleans as "walking ATMs" because of the cash payments they carry away from a day's work. How can employers ensure that their employees' pay is securely distributed?
The payroll debit card concept initially was implemented to offer an electronic payment solution for employees with no bank accounts. By using a pay card, employees could receive their pay without needing to open a bank account or cash a paper paycheck, which can be expensive. Now, other considerations make pay cards a convenient option. Pay cards offer wide acceptance, reduce the time it takes to pay an employee, and provide better overall security than paper checks. Today's pay card programs are also being expanded to serve a host of other functions including flexible spending, health savings, or other reimbursement account payments.
Protecting the purse strings
Unfortunately, incidents such as what happened to RBS WorldPay, which has a class-action lawsuit filed against them for allegedly failing to protect personal information, may make some employers wary about initiating a pay card program. How can employers be sure their employees' pay card data is protected, whether at the ATM or when being stored or transmitted through the payroll system? Paul Cogswell is a Certified Fraud Examiner (CFE) and vice president enterprise risk and compliance for Ceridian's Comdata business unit. He offers reassurance regarding security measures being taken to protect the Ceridian PayCard solution.
"The information transmitted from Ceridian's clients is encrypted and protected, which can be compared to having a little armored car on the Internet highway," Cogswell explained. "We immediately protect clients' sensitive information during the three important phases of collection, transfer and storage. We protect the message they send to us and protect the data when they need it. The RBS WorldPay ATM breach allegedly happened because client information was unprotected while being stored."
The integrity of the information technology (IT) system also is critical when it comes to protecting confidential data in today's current threat environment.
"Our system for delivering the Ceridian PayCard solution to Ceridian clients was designed with security in mind to meet compliance and overall industry best practices," said Jason Riddle, director, IT security & compliance for Comdata. "Breaches have become more sophisticated, so systems must remain current when it comes to hardware and software. Our systems are very current, and we operate them with all aspects of protecting data."
Ceridian tests its systems regularly for vulnerabilities and assesses risk and threat information with a high level of respect. With sophisticated technology, tools and talented associates, Ceridian is committed to protecting Ceridian PayCard information, getting employees paid and furthering the stream of commerce.
Payroll managers can play an important role in safekeeping payroll data as well. Cogswell suggests these best practices for secure payroll management:
Paper or plastic?
In today's fluctuating economy, many companies are looking for ways to streamline internal processes and save money.
"Pay cards are becoming a popular way to save on payroll costs while eliminating paper," noted Scott Wisdom, product manager, Ceridian Payment Solutions. "They can ease employee burden, lower companies' overhead and are a viable alternative to off-cycle checks."
The Ceridian PayCard solution can give employees access to cash from over 1.3 million ATMs, more than 25,000 MasterCard member bank branches where the employee can present the card to the teller and ask for a cash disbursement, and 25 million MasterCard merchant locations. Let us put our unrivaled experience in card-based electronic funds distribution to work for your company and your employees. Employees receive the benefit of immediate access to funds, while you benefit from a simpler, more streamlined payroll process that can help improve the bottom line. Find out more about Ceridian PayCard and our other payroll management solutions.
The Ceridian Pay Card is issued by Regions Bank pursuant to a license by MasterCard International Incorporated. MasterCard and the MasterCard Brand Mark are registered trademarks of MasterCard International Incorporated.
As a public service to help employers and the public, Ceridian's LifeWorks Employee Assistance Program is making several resources available to help Americans cope with economic issues in 2009.
Resources for employees
With the recent $9 million ATM heist linked to the computer system for RBS WorldPay and other similar ATM break-ins, many of us are left to wonder about the security of PIN-driven debit cards. As more companies consider the use of pay cards for employee compensation, security issues may be a cause for concern. On the other hand, a recent New York Times article referred to laborers in New Orleans as "walking ATMs" because of the cash payments they carry away from a day's work. How can employers ensure that their employees' pay is securely distributed?
The payroll debit card concept initially was implemented to offer an electronic payment solution for employees with no bank accounts. By using a pay card, employees could receive their pay without needing to open a bank account or cash a paper paycheck, which can be expensive. Now, other considerations make pay cards a convenient option. Pay cards offer wide acceptance, reduce the time it takes to pay an employee, and provide better overall security than paper checks. Today's pay card programs are also being expanded to serve a host of other functions including flexible spending, health savings, or other reimbursement account payments.
Protecting the purse strings
Unfortunately, incidents such as what happened to RBS WorldPay, which has a class-action lawsuit filed against them for allegedly failing to protect personal information, may make some employers wary about initiating a pay card program. How can employers be sure their employees' pay card data is protected, whether at the ATM or when being stored or transmitted through the payroll system? Paul Cogswell is a Certified Fraud Examiner (CFE) and vice president enterprise risk and compliance for Ceridian's Comdata business unit. He offers reassurance regarding security measures being taken to protect the Ceridian PayCard solution.
"The information transmitted from Ceridian's clients is encrypted and protected, which can be compared to having a little armored car on the Internet highway," Cogswell explained. "We immediately protect clients' sensitive information during the three important phases of collection, transfer and storage. We protect the message they send to us and protect the data when they need it. The RBS WorldPay ATM breach allegedly happened because client information was unprotected while being stored."
The integrity of the information technology (IT) system also is critical when it comes to protecting confidential data in today's current threat environment.
"Our system for delivering the Ceridian PayCard solution to Ceridian clients was designed with security in mind to meet compliance and overall industry best practices," said Jason Riddle, director, IT security & compliance for Comdata. "Breaches have become more sophisticated, so systems must remain current when it comes to hardware and software. Our systems are very current, and we operate them with all aspects of protecting data."
Ceridian tests its systems regularly for vulnerabilities and assesses risk and threat information with a high level of respect. With sophisticated technology, tools and talented associates, Ceridian is committed to protecting Ceridian PayCard information, getting employees paid and furthering the stream of commerce.
Payroll managers can play an important role in safekeeping payroll data as well. Cogswell suggests these best practices for secure payroll management:
- Ensure the payroll preparation, disbursement and distribution functions are segregated.
- Look for disbursements without deductions for taxes or Social Security.
- Use methods to eliminate the paper.
- Check records regularly for duplicate entries.
- Be wary of budget variations in payroll expense.
- Separate duties of key payroll personnel.
- Perform a regular reconciliation of payroll.
- Restrict access among certain payroll system users.
- Know your employees.
Paper or plastic?
In today's fluctuating economy, many companies are looking for ways to streamline internal processes and save money.
"Pay cards are becoming a popular way to save on payroll costs while eliminating paper," noted Scott Wisdom, product manager, Ceridian Payment Solutions. "They can ease employee burden, lower companies' overhead and are a viable alternative to off-cycle checks."
The Ceridian PayCard solution can give employees access to cash from over 1.3 million ATMs, more than 25,000 MasterCard member bank branches where the employee can present the card to the teller and ask for a cash disbursement, and 25 million MasterCard merchant locations. Let us put our unrivaled experience in card-based electronic funds distribution to work for your company and your employees. Employees receive the benefit of immediate access to funds, while you benefit from a simpler, more streamlined payroll process that can help improve the bottom line. Find out more about Ceridian PayCard and our other payroll management solutions.
The Ceridian Pay Card is issued by Regions Bank pursuant to a license by MasterCard International Incorporated. MasterCard and the MasterCard Brand Mark are registered trademarks of MasterCard International Incorporated.
As a public service to help employers and the public, Ceridian's LifeWorks Employee Assistance Program is making several resources available to help Americans cope with economic issues in 2009.
Resources for employees
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