Like Colonial and JSB, the impact of Kronos’ ransomware attack was widespread, resulting in the sobering realization that without the use of its electronic recording keeping system, many employers were completely unprepared to handle the logistics of timekeeping and payroll requirements for their workforce. All told, reports of ransomware attacks to the FBI’s Internet Crime Complaint Center during the first half of 2021 represented a staggering 62% year-over-year increase. Just one month later, JBS USA, a large meat-processing vendor, was hit by a ransomware attack that severely hindered the company’s ability to package and process meat products. Colonial Pipeline was the victim of a ransomware attack in May that affected the flow of oil all across the country. However, ransomware attacks are not a novel threat, and other major businesses were also targeted in 2021, resulting in disruption to critical supply chains. While employers implemented stop-gap measures, many expressed disbelief that a company of Kronos’ size did not appear to have a contingency plan for its customers, many of whom exclusively relied on the platform for payroll and attendance-related functions. While the days lagged on, frustration turned to panic, as Kronos admitted the ransomware attack could render the system inoperable for several weeks as employers scrambled to track employee hours, process payroll, distribute year-end bonuses, and accurately track vacation usage for the holidays. Kronos has been working to repair the damage and regain system functionality, but in the interim, a complete shutdown has occurred, blocking access to electronic records of employers across the country.
On December 11, 2021, Kronos announced that one of its cloud-based time and attendance systems had been exploited by hackers. Ultimate Kronos Group (“Kronos”) is a well-known workforce management platform used to track employee scheduling, attendance, and payroll.
Ransomware locked up time records for thousands of companies across the country last month, and those records remain unavailable.
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