PASADENA, Calif. - nvtip -- On Sept. 4, 2019, Cachet Financial Services was the victim of fraud perpetuated by a New York based payroll company involving employee direct deposits. The dollar amount exposure is estimated to be up to $26MM.

Cachet responded by immediately initiating a reversal of all the fraudulent transactions in which 100% of the items were addressed and the payroll provider's account has been frozen. Cachet followed standard payroll industry practice in reversing these items.

After internal review, Cachet is confident this situation is an isolated event involving a single payroll provider's act. Additionally, the payroll provider in question has ceased business operations. An email sent by the payroll provider to their clients, advises they are no longer able to process payroll transactions, leaving their clients without a payroll processor.

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Cachet is confident the situation is under control and is operating following standard business practices. Cachet will be taking all necessary actions including, legal, insurance support and other inquiries. Pioneer Bank in New York, the payroll provider's bank, should be contacted for more information.

About Cachet Financial Services

Cachet Financial Services is a national financial services company headquartered in Pasadena, California providing ACH Processing, Wire Services, and Settlement and Reconciliation Account Services. Cachet is part of the FBG family of companies.

For more information about Cachet services including our vast partner network where we can facilitate new payroll provider services, please contact David Taub at (626) 578-9400 or contact us via email. Visit our website at www.cachetservices.com.