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Cyberattack on Payroll Supplier Units Off Scramble Forward of Holidays

Cyberattack on Payroll Supplier Units Off Scramble Forward of Holidays

A cyberattack on a well-liked payroll software program supplier despatched work-tracking programs offline this week, forcing corporations to resort to handbook strategies to pay staff.

UKG Inc. is constant to research and handle outages associated to a ransomware assault that compelled it to close down a few of its Kronos cloud-based providers that log and retailer worker working hours. The outages have lasted via the week and will proceed into the brand new 12 months, in keeping with notices posted on a UKG web site. The Lowell, Mass.-based firm disclosed the assault Dec. 11.

A spokesman for UKG mentioned it’s taking motion to resolve the assault and is engaged with cybersecurity specialists and authorities.

“We acknowledge the seriousness of the problem and have mobilized all out there assets to assist our clients and are working diligently to revive the affected providers,” he mentioned.

Kronos customers span a spread of industries, protecting retail, authorities providers, producers, and quite a few healthcare programs. The American Hospital Affiliation mentioned in a Dec. 14 assertion that it had seen a number of reviews from hospitals that had been affected by the outage, and warned that the shortage of system availability may very well be “fairly disruptive” given a unbroken rise in seasonal flu and Covid-19 instances.

The influence of the outage is especially acute for retail shops, given staff usually work additional time hours within the run-up to Christmas Day. A spokeswoman for J Sainsbury PLC, which runs the British grocery store chain Sainsbury’s and makes use of Kronos to log working hours, mentioned that the corporate has contingency plans in place to satisfy payroll on time, and that it’s involved with UKG. The BBC reported Thursday that Sainsbury’s had misplaced every week’s price of information, and is utilizing historic knowledge and dealing patterns to pay its 150,000 U.Okay. staff.

New York’s Metropolitan Transportation Authority has additionally been affected by the Kronos outage.


Spencer Platt/Getty Photos

New York’s Metropolitan Transportation Authority, which makes use of Kronos in its timekeeping system, mentioned payroll points stemming from the outage are affecting round 20,000 of its 66,000 energetic staff. The MTA is implementing contingency plans to make sure there shall be “minimal influence” to payrolls, though, in some instances, changes may should be made at a later time for additional time hours, paid go away or particular funds, spokesman

Eugene Resnick


“What we now have assured everyone seems to be that they need to proceed to swipe out and in. It’s anticipated that we will retrieve the information from the Kronos clocks and subsequently will be capable of account all the time labored,” he mentioned. The New York Publish earlier reported that the group had been affected by the outage.

The payroll points stemming from the Kronos outage come as know-how workers around the globe are grappling with a newly found vulnerability in a software program instrument often called Log4j that logs person exercise. UKG mentioned in a discover on its web site that it’s conscious of the Log4j flaw, and has measures in place to stop hackers from exploiting it.

The ransomware assault at UKG is the most recent in plenty of cyber incidents throughout 2021 focusing on know-how service suppliers and provide chains. In July, Kaseya Ltd., which provides know-how administration instruments, was the sufferer of a ransomware strike that subsequently contaminated lots of of shoppers. A February assault on software program firm Accellion USA LLC uncovered knowledge from legislation companies, universities and different customers of its File Switch Equipment platform.

Write to James Rundle at

Copyright ©2021 Dow Jones & Firm, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Appeared within the December 18, 2021, print version as ‘Cyberattack Hampers Payrolls.’

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