About ADP:Automatic Data Processing Inc. (NASDAQ: ADP), with about $10 billion in revenues and approximately 570,000 clients, is one of the largest providers of business outsourcing solutions. Leveraging over 60 years of experience, ADP offers a wide range of human resource, payroll, tax and benefits administration solutions from a single source. ADP’s easy-to-use solutions for employers provide superior value to companies of all types and sizes. ADP is also a leading provider of integrated computing solutions to auto, truck, motorcycle, marine, recreational vehicle, and heavy equipment dealers throughout the world.

ADP and the ADP logo are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc. ©2013, ADP, Inc. All other trademarks and service marks are the property of their respective owners.

Automatic Data Processing, Inc. One ADP Boulevard Roseland, NJ 07068 adp.com

Toll Free: 1.800.CALL.ADP (1.800.225.5237)

Disclaimer: The information contained in this document is not intended to contain all possible information to help limit fraudulent activities. The external web site links which are provided as resources are not under the control of ADP. These web sites are only provided as a convenience, and ADP does not endorse any of these sites. ADP assumes no responsibility or liability for any material that may be accessed on other web sites, nor does ADP make any representation regarding the quality of any product or service contained at any such site.

Helpful Websites to Protect Your SystemThe following cyber security websites provide extensive information on how to protect your system:

• Virus and Spyware Defense: www.us-cert.gov/cas/tips/ST06-009.html

• Anti-Virus Software: www.us-cert.gov/cas/tips/ST04-005.html

• Understanding Firewalls: www.us-cert.gov/cas/tips/ST04-004.html

• Understanding Patches: www.us-cert.gov/cas/tips/ST04-006.html

• National Cyber Security Alliance: staysafeonline.org/stop-think-connect/

• Additional Tips: www.us-cert.gov/cas/tips/

ADP Security Contacts • For helpful security tips and security

alerts, visit the ADP Trust Center at www.adp.com/about-us/trust-center.aspx.

• Send suspicious emails with an ADP logo to abuse@adp.com.

Payroll Fraud Prevention and Detection Techniques

Payroll Management Platform/Applications • Confirm that your computers have regularly

updated anti-virus and anti-malware software installed behind a reputable firewall.

• Physically secure the computer used for pro-cessing and approving payroll activities and dispose of confidential hard copy and electronic media appropriately.

• Always change passwords to payroll-related systems whenever there is a change in payroll administration personnel.

Management • Split your payroll management tasks so that

one individual is responsible for preparing the payroll and another is responsible for submitting it and verifying the output.

• Consider performing payroll and banking tasks on a separate, dedicated system used only for those purposes.

• If for any reason you suspect a security breach, do not use the system and immediately seek help from your IT security or technology group.

• Provide ADP with up-to-date contact information for your payroll administrator to ensure that we can make immediate contact if we detect suspicious activity.

Preventing Payroll FraudThe following are some best practices to adopt and perform on a regular basis to identify potential problems before they occur.

• Reconcile the number of pays per cycle to the number of active employees you have. If the number of pays is greater than the number of employees, then investigate!

• Regularly inspect the Personnel Change Report for every Payroll and Payroll Preview activity. Look for the following:

• New Hires

• Bank Account Changes

• Pay Rate Changes

• Address Changes, especially to an area where you do not have many other employees.

• Regularly run a report identifying employees who split direct deposit pays into multiple ac-counts and investigate changes to this list to ensure they are valid.

• Generate a regular access control report for all client administrator and practitioner roles. Re-view it for accuracy and appropriateness, and make sure their contact information is valid and up-to-date.

Detecting Payroll FraudSome indicators that payroll fraud is underway might include:

• Receiving a “preview” email for a payroll that you did not submit.

• Indication that a payroll has unexpectedly been transmitted or delivered to you.

• Employees reporting unexpected or excessive funds in their bank accounts resulting from payroll transactions such as “extra deposit.”

• Changes on your payroll that you did not perform.

Enhancing the integrity of the brand through global protection.

As your business and strategic partner, ADP wants to ensure that we are providing you with some industry best practices to help you protect your payroll from some of the cyber threats lurking in the digital world.

Protecting your payroll is not only essential to your employees, it is also vital to protecting the integrity of your brand and your business. Serving in a critical role, payroll professionals are the first line of defense against hackers, fraudsters, and other cyber criminals.

With some simple steps, you can identify potential threats to your company’s payroll and confidential data and stop them from becoming realities.