The HR tech industry, typically associated with payroll and compliance, has taken a dramatic turn into corporate espionage. Rippling, a leading HR platform, has accused competitor Deel of planting a mole within its ranks to steal trade secrets, as detailed in a bombshell lawsuit filed on March 17, 2025. This high-stakes drama, complete with a Slack “honeypot” trap and a bathroom phone wipe, exposes vulnerabilities in the sector and offers critical lessons for HR professionals. Here’s what HR pros need to know about this clash of titans.
The Plot: A Mole’s Mission
Rippling’s lawsuit alleges that Deel orchestrated a covert operation through Keith O’Connor, hired in 2023 for Rippling’s Dublin-based global payroll team. O’Connor reportedly conducted over 4,000 searches across Rippling’s Slack, Google Drive, and Salesforce systems, targeting sensitive data like pricing strategies, customer retention plans, and competitive tactics against Deel. The lawsuit claims O’Connor funneled this intelligence to Deel’s leadership, including CEO Alex Bouaziz, enabling Deel to undercut Rippling’s deals and poach talent.
Rippling’s suspicions were triggered when Deel contacted 15 Rippling employees using private WhatsApp numbers and when confidential Slack messages appeared in media inquiries. To catch the culprit, Rippling planted a fake Slack channel, “d-switchers,” discussed only with Deel’s executives. O’Connor’s immediate search for the channel allegedly confirmed Deel’s role.
The Sting: A Courtroom Chase
The intrigue escalated when Rippling secured an Irish court order to seize O’Connor’s phone. The lawsuit describes O’Connor locking himself in a bathroom, resetting his device to erase evidence, and fleeing with the claim, “I’ll take the hit.” An affidavit later revealed O’Connor’s admission: Deel paid him €6,000 monthly, including crypto transfers, to spy, with direct orders from Bouaziz and Deel’s CFO.
Deel has dismissed the claims as “fabricated” and a distraction from Rippling’s own legal troubles, including alleged violations of international sanctions. Deel plans to file a counterclaim, promising a fierce legal showdown.
Lessons for HR Professionals
This scandal highlights risks in HR tech and actionable steps for HR:
- Fortify Data Security: Platforms like Slack are treasure troves for spies. HR must implement granular access controls and monitor for suspicious searches or downloads.
- Strengthen Hiring Protocols: O’Connor’s access to sensitive systems underscores the need for thorough vetting and role-specific permissions to limit insider threats.
- Cultivate Ethical Standards: Competitive rivalries can breed unethical behavior. HR should reinforce integrity through training and clear policies.
- Plan for Insider Threats: Rippling’s honeypot trap shows the power of proactive defense. HR teams need robust monitoring and response strategies to detect breaches early.
Moving Forward
The Rippling-Deel feud, with its covert searches and courtroom theatrics, reveals the high stakes of HR tech’s data-driven world. As Rippling ($13.5 billion valuation) and Deel ($12 billion) battle for supremacy, HR pros must prioritize security, trust, and ethics to safeguard their organizations. This saga is a wake-up call to stay vigilant in an industry where innovation and intrigue go hand in hand.
