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ADP Hardening Guide

HR/Payroll Last updated: 2025-12-14

Payroll platform security for API connections, SSO, and data access controls

Overview

ADP processes payroll for 640,000+ companies worldwide with access to W-2 data, SSN, salary, and bank account information. The 2024 Broadcom/BSH breach and 2016 credential stuffing incident (“flowjacking”) demonstrate partner ecosystem and registration code vulnerabilities. Regional partner compromise exposed employee data; attackers used stolen W-2 data for tax fraud.

Intended Audience

  • Security engineers managing payroll systems
  • HR technology administrators
  • GRC professionals assessing payroll compliance
  • Third-party risk managers evaluating HR integrations

How to Use This Guide

  • L1 (Baseline): Essential controls for all organizations
  • L2 (Hardened): Enhanced controls for security-sensitive environments
  • L3 (Maximum Security): Strictest controls for regulated industries

Table of Contents

  1. Authentication & Access Controls
  2. API & Integration Security
  3. Data Security
  4. Monitoring & Detection
  5. Compliance Quick Reference

1. Authentication & Access Controls

1.1 Enforce MFA for All Access

Profile Level: L1 (Baseline) NIST 800-53: IA-2(1)

Description

Require MFA for all ADP access, especially administrator and payroll processor accounts.

Rationale

Why This Matters:

  • ADP contains highly sensitive PII (SSN, bank accounts)
  • Payroll fraud potential is extremely high
  • 2016 “flowjacking” attack stole W-2 data via credential stuffing

Real-World Incidents:

  • 2016 Flowjacking: Attackers used stolen credentials and registration codes to steal W-2 data for tax fraud
  • 2024 BSH Breach: Regional partner compromise exposed Broadcom employee data

ClickOps Implementation

Step 1: Configure SSO with MFA

  1. Navigate to: Admin Portal → Security → Single Sign-On
  2. Configure SAML SSO with your IdP
  3. Require MFA at IdP level for ADP application

Step 2: Enable ADP-Native MFA

  1. Navigate to: Admin Portal → Security → Multi-Factor Authentication
  2. Enable: Require MFA for all users
  3. Configure authentication methods

1.2 Implement Role-Based Access

Profile Level: L1 (Baseline) NIST 800-53: AC-3, AC-6

Description

Configure ADP roles with segregation of duties for payroll functions.

ClickOps Implementation

Step 1: Define Role Structure

Role Permissions
Payroll Administrator Full payroll access (limit to 2-3)
Payroll Processor Run payroll, NO tax changes
HR Administrator Employee data, NO payroll
Employee Self-Service Own data only

Step 2: Implement Segregation of Duties

  • Separate payroll setup from payroll approval
  • Separate bank account changes from payroll processing
  • Require dual approval for large payrolls

2. API & Integration Security

2.1 Secure ADP API Connections

Profile Level: L1 (Baseline) NIST 800-53: IA-5

Description

Harden API integrations with ADP Marketplace partners.

Implementation

Step 1: Audit Connected Apps

  1. Navigate to: Admin Portal → Integrations
  2. Review all connected applications
  3. Document data access for each

Step 2: Configure OAuth Scopes

  1. Limit integrations to minimum scopes
  2. Rotate API credentials quarterly
  3. Monitor API usage

3. Data Security

3.1 Protect W-2 and Tax Data

Profile Level: L1 (Baseline) NIST 800-53: SC-28

Description

Implement controls to prevent W-2 data theft.

Implementation

  1. Restrict W-2 access to authorized personnel only
  2. Enable alerts for W-2 generation and download
  3. Audit W-2 access during tax season
  4. Configure fraud alerts for unusual W-2 patterns

4. Monitoring & Detection

4.1 Audit Logging

Profile Level: L1 (Baseline) NIST 800-53: AU-2, AU-3

Detection Focus Areas

-- Detect unusual payroll changes
SELECT user_id, action, employee_id
FROM adp_audit_log
WHERE action IN ('bank_account_change', 'direct_deposit_change')
  AND timestamp > NOW() - INTERVAL '24 hours';

-- Detect bulk W-2 access
SELECT user_id, COUNT(*) as w2_access_count
FROM adp_audit_log
WHERE action = 'w2_view'
  AND timestamp > NOW() - INTERVAL '1 hour'
GROUP BY user_id
HAVING COUNT(*) > 10;

5. Compliance Quick Reference

SOC 2 Mapping

Control ID ADP Control Guide Section
CC6.1 MFA enforcement 1.1
CC6.2 Role-based access 1.2

Changelog

Date Version Maturity Changes Author
2025-12-14 0.1.0 draft Initial ADP hardening guide Claude Code (Opus 4.5)