Ransomware attack on Kronos impacts paychecks of several companies

Ultimate Kronos Group (UKG), a major technology firm that provides human resource management solutions to other companies, was hit by a critical ransomware attack. The cyber attack has rendered several of the firm’s clients unable to access their payroll systems, and the situation could last for weeks.

In a blog post, the company informed its clients and communities that the cyber attack had disrupted the Kronos Private Cloud. Kronos Private Cloud houses a number of the company’s solutions, such as UKG Workforce Central, UKGTeleStaff, Healthcare Extensions, and Banking Scheduling Solutions.

The ransomware attack was discovered late on December 11 as a result of an investigation into “unusual activity affecting UKG solutions.” UKG is currently collaborating with cyber security experts to “assess and resolve the situation.” An investigation is being conducted to ascertain the nature and scope of the cyber attack.

Kronos Private Cloud solutions will be unavailable to clients until an evaluation of the situation is completed. UKG hints in its blog that “it may take up to several weeks” to restore these services, and advises its clients to use alternatives until that time.

According to a CNN report on the incident, the ransomware attack has also raised concerns about data theft.  the city of Cleveland issued a statement in which it stated that Kronos had informed it of the possibility of sensitive information being compromised as a result of the attack. Employee names, addresses, and the last four digits of social security numbers may have been stolen from within the Kronos network.

UKG provides little insight into this concern on its FAQ Page . According to the company, it is currently investigating the possibility of data theft and working hard “to determine whether customer data has been compromised.”

Even if no data was stolen, which is highly unlikely if the hackers gained access to Kronos’ network, the ransomware attack rendered many companies’ payroll systems inoperable. According to CNN, companies that use Kronos services have had to make contingency plans to pay their employees. Some have switched to paper checks, while others continue to find ways to access their payroll systems. However, in most cases, the offline Kronos timesheet system is still operational, and businesses can continue to use it for the time being.

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