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icepicknz

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#129351 12-Sep-2013 10:52
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Hey guys,

After your opinion on something and I guess to also advise people that use Xero of a serious flaw in their system.

If and when you start using Xero, who ever creates the account and becomes the subscriber is then the sole person with permission to the account.
So for instance if you have your PA, Accountant or in our case an old Director create the account, they are the only ones that can control it.
If said PA, Accountant or ex Director become disgruntled with the company, there is no way to transfer the account to another user without that persons permission.

Our company recently had a Director stood down, he had the 'subscriber' status and refused to transfer it and Xero wouldnt do anything; even though


  • Our company name was on all the account data

  • Our company holds the direct debit for payment of the account

  • Our company signed authority for the bank feeds

  • The 2 remaining directors have signing authority over the bank accounts

  • We contacted Xero and pointed them to the companies website showing we had authority over the data as directors

  • The old director was stood down nearly 2 weeks ago


When asked of Xero what do we do, they suggested we export the data and reimport it and start again, there was no simple process around this however.
When asked how you open the account in the company name to ensure this doesnt happen again, we were suggested to use a shared email box rather than a single person.
When I asked what happens in the case of a shared mailbox, someone with access to that mailbox could just change the subscriber to themselves and walk out and hold us ransom, nothing can be done.

I find it hard to believe a company of Xero's size could leave a company so open to abuse.

In the case of all our bank accounts etc, we just contacted the bank and suppliers and stated they need to stand down the director and to view the Companies (Government) website to view the data themselves.
New forms were sent out to us and process was followed.

Does anyone have any suggestions as what to do from here?
Would love to hear from others that may have been a similar case.
Be warned of this huge flaw in their systems!

Cheers
Barry




Barry Murphy
ISPMap - New Zealand ISP map
Vibe Communications LTD - Business ISP and Wholesale Carrier



Any comments made by myself don't reflect the views of my employer, they are mine and mine alone

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lurker
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  #894680 12-Sep-2013 11:17
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Can't you threaten legal action against the director if he refuses to transfer?



hairy1
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  #894683 12-Sep-2013 11:22
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That doesn't fix the problem. The ability to have more than one admin is one advantage of cloud computing.




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icepicknz

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  #894684 12-Sep-2013 11:24
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We are still seeking legal advice, however Xero state that the account is linked to his personal account.

When I asked Xero how you setup a business account to attach the company to they said you can't you'd have to setup a group email under the company, however this is how I suggested someone could then Hijack the account and just change the subscriber to their own email address; they confirmed yes this would be possible and nothing could be done.

Multiple admins or subscribers would be a much better option, then a procedure to remove one of them if required, i.e. looking at the companies records.




Barry Murphy
ISPMap - New Zealand ISP map
Vibe Communications LTD - Business ISP and Wholesale Carrier



Any comments made by myself don't reflect the views of my employer, they are mine and mine alone



Zeon
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  #894713 12-Sep-2013 12:42
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Can't they just manually handle this situation? Perhaps you could obtain a court order to force the ex director to hand over access or force Xero to move the account details. Seriously I'm surprised that a company this is meant to be dynamic like Xero can't use common sense and manually sort out the information. just check the companies office for verification and that's all that should be needed.

There are a hell of a lot fo Xero fan boys out there many of whom gloss over situations like this.




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CYaBro
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  #894720 12-Sep-2013 12:52
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So are you saying the ex-director created the company Xero account using their own personal email address?
If they created it with a company email address you could easily get access to that.




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icepicknz

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  #894722 12-Sep-2013 12:56
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Yes he used his personal email address correct, though even if it was a company email address obtaining access to someone elses email address is illegal unfortunately.




Barry Murphy
ISPMap - New Zealand ISP map
Vibe Communications LTD - Business ISP and Wholesale Carrier



Any comments made by myself don't reflect the views of my employer, they are mine and mine alone

CYaBro
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  #894728 12-Sep-2013 13:01
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icepicknz: Yes he used his personal email address correct, though even if it was a company email address obtaining access to someone elses email address is illegal unfortunately.


Not if they've left the company surely??
This happens all the time.

EG: Barbara has left our company and we need her emails redirected to Susie please.

But you are right, this does sound rather crazy that Xero don't have an easy system in place for this sort of thing.




Opinions are my own and not the views of my employer.


 
 
 

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  #894730 12-Sep-2013 13:03
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icepicknz: Yes he used his personal email address correct, though even if it was a company email address obtaining access to someone elses email address is illegal unfortunately.


Not if it's a mailbox on a domain owned by the company.

icepicknz

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  #894731 12-Sep-2013 13:04
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I guess so, however there is no process in place to stop that person transferring the subscription from their company email to a personal email address; or having multiple 'subscribers' or 'admins' that have authority over the account. So that person could transfer the account to their personal account. When I asked Xero about this, they said that was possible and they would have to wait for said 'subscriber' to release authority.

I'm awaiting their legal team to contact me as I suggested this is a huge flaw in the system, however having to wait days between replies doesnt help!




Barry Murphy
ISPMap - New Zealand ISP map
Vibe Communications LTD - Business ISP and Wholesale Carrier



Any comments made by myself don't reflect the views of my employer, they are mine and mine alone

timmmay
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  #894744 12-Sep-2013 13:29
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Since you obviously have legal authority over the data, the business, and the Xero account suggest Xero try something like this

update USERS set EMAIL="director@company.com" where email="old@email.com"

If they say no then I guess you ask them to create you a new account, and shut off the old one. Alternately there are plenty of accounting systems you can move to.

I'm very surprised and a little disappointed Xero haven't got a process for this. I use them myself, and they're generally very good.

mattwnz
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  #894755 12-Sep-2013 14:03
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Surely they have a form that you can fill in to change the ownership of the account, that you can fill in manually and sign, and they can then manually check and authenticate the details. This is one of the concerns I have with this whole cloud model, especially with accounting, as there is a lack of control for the company. If you had just purchased software to install on your own PC, you wouldn't have the problem. Maybe the IRD could help, as they should be able to authenticate your details for them.

icepicknz

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  #894760 12-Sep-2013 14:13
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mattwnz: Surely they have a form that you can fill in to change the ownership of the account, that you can fill in manually and sign, and they can then manually check and authenticate the details. This is one of the concerns I have with this whole cloud model, especially with accounting, as there is a lack of control for the company. If you had just purchased software to install on your own PC, you wouldn't have the problem. Maybe the IRD could help, as they should be able to authenticate your details for them.


This is the point I made to them and they pointed me to clause 2 - https://www.xero.com/nz/about/terms/




Barry Murphy
ISPMap - New Zealand ISP map
Vibe Communications LTD - Business ISP and Wholesale Carrier



Any comments made by myself don't reflect the views of my employer, they are mine and mine alone

timmmay
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  #894773 12-Sep-2013 14:48
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Seems like there should be a way to change the subscriber. Perhaps you need to explore legal options against your ex director.

mattwnz
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  #894775 12-Sep-2013 14:52
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Maybe they need a warning when someone signs up, that only the owner of the company can signup, or have checks that the main person in charge of the account is actually the owner.

What do they do if the main subscriber no longer has access to the email address they signed up under. eg They signup with an xtra address, and then they change ISPs and no longer have access to it, and and they don't know their login details? How would they then get them reset to a new email address?

CYaBro
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  #894794 12-Sep-2013 15:49
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mattwnz: 

What do they do if the main subscriber no longer has access to the email address they signed up under. eg They signup with an xtra address, and then they change ISPs and no longer have access to it, and and they don't know their login details? How would they then get them reset to a new email address?


Exactly what I was thinking myself.




Opinions are my own and not the views of my employer.


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