Incident: Ransomware Attack on Kronos Payroll Systems Impacts Multiple Entities

Published Date: 2021-12-17

Postmortem Analysis
Timeline 1. The software failure incident, a ransomware attack on Kronos impacting payroll systems, happened after the company noticed "unusual activity" on Saturday [122203]. 2. Published on 2021-12-17. 3. Estimated timeline: The incident likely occurred on Saturday, December 11, 2021.
System 1. Kronos Private Cloud solutions, including UKG Workforce Central [122203]
Responsible Organization 1. The ransomware attackers were responsible for causing the software failure incident at Ultimate Kronos Group [122203].
Impacted Organization 1. Employees using UKG Workforce Central to track hours and schedule shifts [122203] 2. Customers of Kronos Private Cloud solutions [122203] 3. City of Cleveland [122203]
Software Causes 1. Ransomware attack on Kronos' systems, impacting payroll systems for workers [122203] 2. Security flaw in widely used software Log4j, potentially opening the door to hackers in many companies' systems [122203]
Non-software Causes 1. Ransomware attack: The incident was caused by a crippling ransomware attack on Kronos' systems, impacting the payroll systems for a number of workers [122203]. 2. Security flaw in Log4j software: The widely used software across the internet, Log4j, had a security flaw that was made public late last week, potentially opening the door in many companies' systems to hackers [122203].
Impacts 1. Payroll systems were impacted, leading to the need for contingency plans like shifting to paper checks and some employees being unable to access payroll systems [122203]. 2. The ransomware attack affected Kronos Private Cloud solutions, including UKG Workforce Central used for tracking hours and scheduling shifts [122203]. 3. Employees could still log hours on the offline Kronos timesheet system, but the timeline for systems coming back online was unclear [122203]. 4. Data privacy concerns arose as sensitive information like employee names, addresses, and the last four digits of social security numbers may have been compromised in the attack [122203].
Preventions 1. Implementing robust cybersecurity measures such as regular security audits, penetration testing, and employee training to prevent ransomware attacks [122203]. 2. Promptly applying software patches and updates to address known vulnerabilities like the Log4j flaw [122203]. 3. Utilizing multi-factor authentication and strong password policies to enhance system security [122203].
Fixes 1. Implementing robust cybersecurity measures to prevent future ransomware attacks, such as regular security audits, employee training on cybersecurity best practices, and timely software patching [122203]. 2. Conducting a thorough investigation to determine the extent of the data breach and taking necessary steps to secure customer data [122203]. 3. Restoring affected services by working diligently to bring the offline systems back online and ensuring that all impacted employees can access the necessary payroll systems [122203].
References 1. Kronos spokesperson [122203] 2. MTA spokesperson Tim Minton [122203] 3. City of Cleveland [122203]

Software Taxonomy of Faults

Category Option Rationale
Recurring multiple_organization (a) The software failure incident having happened again at one_organization: The article does not mention any previous incidents of a similar nature happening again within the same organization, Ultimate Kronos Group (Kronos), or with its products and services. (b) The software failure incident having happened again at multiple_organization: The article mentions a security flaw in widely used software called Log4j that was made public late last week, opening the door in many companies' systems to hackers. This indicates that the software failure incident related to the Log4j vulnerability has impacted multiple organizations, not just Kronos [122203].
Phase (Design/Operation) design, operation (a) The software failure incident related to the design phase is evident in the ransomware attack on Kronos, impacting their payroll systems for workers. The attack disrupted the Kronos Private Cloud solutions, which house services like UKG Workforce Central used by employees to track hours and schedule shifts [122203]. (b) The software failure incident related to the operation phase is seen in the impact on employers and employees who are unable to access payroll systems, leading to the need for contingency plans such as shifting to paper checks. Additionally, there are concerns about data privacy as sensitive information like employee names, addresses, and partial social security numbers may have been compromised in the attack [122203].
Boundary (Internal/External) within_system, outside_system (a) within_system: The software failure incident, a ransomware attack on Kronos, impacted the payroll systems for a number of workers. The attack specifically targeted Kronos Private Cloud solutions, which house services like UKG Workforce Central used by employees to track hours and schedule shifts [122203]. (b) outside_system: The ransomware attack on Kronos occurred after a security flaw in widely used software called Log4j was made public, potentially opening the door for hackers to exploit vulnerabilities in many companies' systems. While Kronos has not confirmed a direct link between the ransomware attack and the Log4j vulnerability, the timing of the attack following the Log4j flaw disclosure raises concerns about external factors contributing to the software failure incident [122203].
Nature (Human/Non-human) non-human_actions, human_actions (a) The software failure incident in this case was primarily due to non-human actions, specifically a crippling ransomware attack on Kronos' systems [122203]. The ransomware attack impacted the Kronos Private Cloud solutions, disrupting services like UKG Workforce Central used by employees to track hours and schedule shifts. This attack was not directly caused by human actions but rather by external malicious actors exploiting vulnerabilities in the system. (b) However, human actions also played a role in the response to the incident. Employers had to make contingency plans such as shifting to paper checks to pay workers, and impacted employees were unable to access payroll systems [122203]. Additionally, Kronos took immediate action to investigate and mitigate the issue, alerted affected customers, informed authorities, and worked with cybersecurity experts to address the ransomware attack.
Dimension (Hardware/Software) software (a) The software failure incident reported in the article is primarily attributed to a ransomware attack on Kronos, impacting their payroll systems and data storing entity, Kronos Private Cloud solutions. This ransomware attack is a result of external factors, such as hackers exploiting vulnerabilities in the system, rather than originating from hardware issues [122203]. (b) The article mentions a security flaw in widely used software called Log4j, which was made public before the ransomware attack on Kronos. This software vulnerability in Log4j opened the door for hackers to exploit systems across various companies, potentially including Kronos. However, Kronos has not confirmed a direct link between the ransomware attack they experienced and the Log4j vulnerability, indicating that the failure was not solely due to software issues but rather a combination of software vulnerabilities and external cyber threats [122203].
Objective (Malicious/Non-malicious) malicious (a) The software failure incident reported in Article 122203 is malicious in nature. It was a ransomware attack on Ultimate Kronos Group's systems, impacting their payroll systems for a number of workers. The attack was described as a ransomware incident that disrupted the Kronos Private Cloud, which houses solutions used by a limited number of customers. The attackers compromised sensitive information, including employee names, addresses, and the last four digits of social security numbers. The incident involved hackers gaining unauthorized access to Kronos's network with the intent to harm the system and potentially compromise customer data [122203].
Intent (Poor/Accidental Decisions) poor_decisions, accidental_decisions (a) The software failure incident involving the ransomware attack on Kronos by the Log4j vulnerability does not directly point to poor decisions made by the company. However, the incident highlights the potential consequences of not promptly addressing known security vulnerabilities like Log4j, which could be considered a poor decision in terms of cybersecurity risk management [122203]. (b) The accidental_decisions aspect can be seen in the unintended consequences of the security flaw in the Log4j software, which opened the door for hackers to exploit systems across various companies, including Kronos. This unintended consequence led to the ransomware attack impacting Kronos' payroll systems and potentially compromising sensitive information of employees [122203].
Capability (Incompetence/Accidental) accidental (a) The software failure incident related to development incompetence is not explicitly mentioned in the provided article. (b) The software failure incident related to accidental factors is evident in the article. The article discusses a ransomware attack on Kronos, impacting payroll systems for numerous workers. The attack was described as a ransomware incident that disrupted the Kronos Private Cloud, which houses solutions used by some customers. The incident was not directly linked to the Log4j vulnerability, but it occurred after a security flaw in widely used software, Log4j, was made public, potentially opening the door to hackers in many companies' systems [122203].
Duration temporary (a) The software failure incident in this case is temporary. The article mentions that the ransomware attack impacted Kronos' systems, causing them to be down and potentially remaining that way for several weeks. Kronos took immediate action to investigate and mitigate the issue, alerted affected customers, and informed the authorities. They are working diligently to restore the affected services, indicating that the failure is not permanent [122203].
Behaviour crash, omission, timing, other (a) crash: The software failure incident in this case can be categorized as a crash. The ransomware attack on Kronos resulted in the systems being down, impacting payroll systems for workers and potentially causing delays in accessing services [122203]. (b) omission: The incident also involves omission as some impacted employees have been unable to access payroll systems, leading to the need for contingency plans such as shifting to paper checks [122203]. (c) timing: While the incident does not directly indicate a timing failure, there is a mention of potential delays in restoring the affected services, indicating a timing aspect to the failure [122203]. (d) value: The incident does not specifically mention the system performing its intended functions incorrectly, so there is no clear indication of a value failure in this case. (e) byzantine: There is no indication in the article that the software failure incident involved inconsistent responses or interactions, so a byzantine failure is not evident. (f) other: The other behavior exhibited in this software failure incident is a security breach due to a ransomware attack, leading to potential data compromise and privacy concerns for the impacted parties [122203].

IoT System Layer

Layer Option Rationale
Perception None None
Communication None None
Application None None

Other Details

Category Option Rationale
Consequence property (d) property: People's material goods, money, or data was impacted due to the software failure The software failure incident involving the ransomware attack on Kronos resulted in potential data breaches and impacts on sensitive information. The city of Cleveland mentioned that sensitive information, including employee names, addresses, and the last four digits of social security numbers, may have been compromised in the attack [122203]. Additionally, Kronos stated that they are investigating to determine whether customer data has been compromised, indicating a potential impact on data security and privacy [122203].
Domain information, health, government (a) The failed system was intended to support the industry of information. The software failure incident impacted the payroll systems for a number of workers, including notable customers across various sectors such as the city of Cleveland, New York’s Metropolitan Transportation Authority (MTA), Tesla, MGM Resorts International, and many hospitals across the country [122203]. The incident involved a ransomware attack on Kronos Private Cloud solutions, which house solutions like UKG Workforce Central used by employees to track hours and schedule shifts [122203]. (b) The failed system was not directly related to the transportation industry, but it did impact the New York Metropolitan Transportation Authority (MTA) as one of the affected customers of Kronos, leading to potential payroll issues for employees [122203]. (c) The failed system was not directly related to the natural resources industry. (d) The failed system was not directly related to the sales industry. (e) The failed system was not directly related to the construction industry. (f) The failed system was not directly related to the manufacturing industry. (g) The failed system was not directly related to the utilities industry. (h) The failed system was not directly related to the finance industry, although it did impact payroll systems for various organizations. (i) The failed system was not directly related to the knowledge industry. (j) The failed system was not directly related to the health industry, but it did impact hospitals across the country that use Kronos services for workforce management [122203]. (k) The failed system was not directly related to the entertainment industry. (l) The failed system was not directly related to the government industry, but it did impact public sector organizations like the city of Cleveland, which was notified that sensitive information may have been compromised in the attack [122203]. (m) The failed system was not directly related to any other specific industry mentioned in the articles.

Sources

Back to List