Wave Systems Corp. (fka WAVXQ)

[Chowder]

ADP payroll firm hacked.

Now this could really be interesting. Could you imagine some hacker posting payroll data for some company? One of the big four things you never discuss, politics, money, sex and religion, posted for all to see.

http://online.wsj.com/article/BT-CO-20110615-712649.html
DOW JONES NEWSWIRES

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; [e-mail]