Ransomware Attack May Leave Many Americans Without Pay This Christmas

Payroll company Kronos says it could take 'several weeks' to restore system availability.

We are fast approaching the end of the year, but there's a real chance many Americans won't be receiving that all-important paycheck to cover Christmas expenses thanks to ransomware.

As NBC News reports, payroll company Kronos was hit by a ransomware attack on Saturday, Dec. 11, which impacted its UKG solutions reliant on the Kronos Private Cloud. These are systems employers use to process time and attendance data for payroll processing and schedule management.

Kronos recommends that "customers evaluate alternative plans to process time and attendance data" because it doesn't know how long it will take to restore access. In an update on Dec. 14, Kronos admitted that, "Due to the nature of the incident, it may take up to several weeks to fully restore system availability." In other words, there's little chance the payroll system will be functioning this month.

In the latest update posted on Dec. 15, Kronos says it's exploring the available options, but that the company "strongly recommends customers consider manual time collection efforts to ensure accurate collection of employee time in the interim." Kronos also confirmed that time punch data can't currently be collected manually, which makes the situation that much more difficult for employers.

Impacted companies include GameStop, Honda, and Whole Foods, as well as several state and local government offices. Whole Foods is using paper records and doesn't think there will be a problem continuing to pay employees. Honda is currently working to minimize the disruption. The main concern right now is whether anyone who gets paid bi-weekly through UKG is going to receive any funds on their next payday (Dec. 17).

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