From PBN: Be Careful With The Cloud


Peter Lachapelle recently authored a guest article for Providence Business News about the ramifications of overconfidence in cloud services and how it might put your business in jeopardy.

IT’S PAYDAY! Your employees are expecting their automatic deposit to show up in their checking account by the time the workday starts. Of course, it will be there. It’s always there. Several years ago, your own internal employees would process the payroll, but now you’ve outsourced it to a cloud service, and you have confidence that its sophisticated, highly secure systems will protect the payroll process and your employees’ confidential data.

But wait.

A funny thing happened on the way to your checking account. The service you expected was impenetrable fell victim to hackers. No one received their checks. This is never good, but during a time when businesses want to find creative ways to show their employees they are respected and valued, missing a pay period (or maybe more) isn’t helpful and could hurt a company’s effort to retain talent.

This scenario played out on Dec. 11 when human resources management company Ultimate Kronos Group was hit by a ransomware attack that left many large employers nationwide dealing with payroll disruptions, including Rhode Island-based Care New England Health Systems, according to news reports.

At the 2,000 affected companies – which also included Tesla Inc., Puma SE, FedEx Corp. and Whole Foods Market LP – employees were left waiting for their direct deposit, causing their employers to scramble to provide manual processing or paper checks. It took until Jan. 22 for Kronos to restore all of its clients with access to the production systems. The company continues to recover nonproduction

Access the PDF for the full article here.

To learn more, reach out to Peter Lachapelle here.