Payroll during a catastrophic incident like the GrowdStrike disruption must be planned for.
Implementing strategies like Ian recommended in his blog is important, but in my opinion, the ability to pay people during the incident is the most critical element. This is the key element of an incident response plan: “Incident Response Plan—Develop a comprehensive incident response plan tailored to payroll security. This should include steps for containment, eradication, and recovery in the event of a breach.” Ian Giles.
At Inzenius, we have designed the opportunity to run pays in our system even if the internet network is down.
I am happy to share how we can achieve this, but the key is having a backed-up version of the software installed on-site to continue the payroll process from the last backup, which we recommend is run daily overnight. The only missing data should be the timesheets from yesterday, and the authorised rosters could suffice for timesheet approvals. #ThatsInzenius #Payroll
On Friday, we witnessed a significant event involving two major players – Crowdstrike and Microsoft.
This incident has highlighted the increasing importance of robust cybersecurity measures, especially in critical areas such as payroll. As businesses continue to digitise their operations, understanding the implications of such breaches and the essential role of secure payroll systems becomes paramount.
The Crowdstrike-Microsoft incident serves as a critical reminder of the ever-evolving threat in cybersecurity and technology. For businesses, especially those managing sensitive payroll information, the stakes are incredibly high. Ensuring robust payroll security is not just about protecting data but also about maintaining trust and operational stability.
By implementing stringent security measures and fostering a culture of cybersecurity awareness, organisations can safeguard their payroll systems against potential threats and ensure the continued well-being of their workforce.
Strengthening Payroll Security in the Wake of the Crowdstrike-Microsoft Cybersecurity Incident by Ian Gilles
What Happened?
Crowdstrike, a leading cybersecurity firm, disclosed details about a security incident involving Microsoft. The breach occurred during the early morning hours of 19-Jul-24, when they launched a sensor configuration update to Microsoft Windows systems – On this occasion, the update generated a logic error. The result, a system crash, leading to the ‘blue screens of death’ across 8.5 million Windows devices around the world.
The Falcon platform is entirely cloud-based and driven by artificial intelligence (AI), collecting data from clients, ultimately training itself to protect users from threats. As of the end of the first quarter, a massive 62 of the Fortune 100 companies were using CrowdStrike as their choice of cybersecurity provider.
Implications for Businesses by
- Data Breach Risks – The incident demonstrates that no system is entirely immune to issues/erros/breaches. For businesses, this serves as a stark reminder of the importance of regular security audits and updates to protect sensitive data.
- Supply Chain Vulnerabilities – The incident will have exploited a supply chain weakness, emphasising the need for comprehensive security measures not just within a company but across its entire network of vendors and partners.
- Operational Disruptions – Issues and security breaches can lead to significant operational disruptions, affecting everything from day-to-day activities to long-term strategic plans. In this context, payroll systems, which are crucial for employee satisfaction and business continuity, are particularly vulnerable.
The Crucial Role of Payroll Security
Payroll is the backbone of any organisation, ensuring that employees are paid accurately and on time. Given its importance, payroll systems are a prime target for cybercriminals. The incident has several implications for payroll security.
- Confidentiality – Payroll systems store highly sensitive information, including employee personal data and bank details. A breach in this area can lead to identity theft and financial fraud. Companies must ensure that payroll data is encrypted, and access is restricted to authorised personnel only.
- Integrity – Ensuring the integrity of payroll data is crucial. Cyberattacks can manipulate payroll records, leading to financial losses and legal complications. Regular integrity checks and the use of blockchain technology can help maintain data accuracy and prevent tampering.
- Availability – Payroll systems must be reliable and accessible to process salaries timely. Cyberattacks can disrupt these systems, causing delays in salary payments. Implementing robust backup and disaster recovery plans can minimise downtime and ensure business continuity.
Steps to Enhance Payroll Security
- Regular Audits and Updates – Conduct regular security audits and update systems to address vulnerabilities. This includes not only payroll software but also the underlying infrastructure.
- Employee Training – Educate employees about cybersecurity best practices. Phishing attacks often target employees, and a well-informed workforce can be the first line of defence.
- Multi-Factor Authentication (MFA) – Implement MFA for accessing payroll systems. This adds an extra layer of security, making it harder for unauthorised users to gain access.
- Secure Communication Channels – Use encrypted communication channels for any payroll-related correspondence. This prevents interception and unauthorised access to sensitive information.
- Incident Response Plan – Develop a comprehensive incident response plan tailored to payroll security. This should include steps for containment, eradication, and recovery in the event of a breach.
A major tech outage affecting Microsoft systems could screw up payroll for people around the world
Emma Burleigh of Fortune Magazine
Sat, Jul 20, 2024, 1:12 AM GMT+102 min read
In This Article:
A huge tech outage caused by a Crowdstrike update is disrupting Microsoft systems around the world, affecting airlines, hospitals, and retailers. As businesses struggle to recover, some experts say that regularly scheduled pay checks for workers could also be thrown into disarray.
Melanie Pizzey, the founder and CEO of Global Payroll Association, says her company has already been contacted by a number of clients who can’t access their payroll software due to the outage.
“Depending on the length of this outage, it could have very serious implications for businesses across the nation, particularly those who process payroll on a weekly basis,” she says. “Furthermore, we could see a backlog with regard to processing payrolls for the coming month end which may delay employees from receiving their monthly wage.”
Another small business compensation company, Wagepoint, said that employee deposits have been delayed due to the Microsoft-Crowdstrike error.
“It’s in Microsoft’s and Crowdstrike’s hands,” the company wrote on X. “We’re keeping a close eye on the situation and hoping it gets resolved soon.”
Crowdstrike’s CEO George Kurtz announced Friday morning that the outage was not a cyberattack, and instead a “single content update from Windows hosts.”
“The issue has been identified, isolated and a fix has been deployed. We refer customers to the support portal for the latest updates and will continue to provide complete and continuous updates on our website,” he said. “We further recommend organizations ensure they’re communicating with CrowdStrike representatives through official channels. Our team is fully mobilized to ensure the security and stability of CrowdStrike customers.”
Companies across the U.S., U.K., South Africa, Netherlands, Germany, and India running Windows systems have been thrown into disarray. Nearly 1,400 flights have been cancelled globally, and there have been 911 outages in pockets of the U.S.
In a post on Friday, Microsoft wrote: “We have been made aware of an issue impacting Virtual Machines running Windows Client and Windows Server, running the CrowdStrike Falcon agent, which may encounter a bug check (BSOD) and get stuck in a restarting state.”
It’s still unclear how widespread payroll interrupt may be, especially considering that many employees are paid on Fridays. One social media user wrote on X that he didn’t get paid this morning due to a “failed [Microsoft] MS software update.” Still, he tried to be light-hearted about the situation.
“I should have prepared better. $11.97 isn’t much when you’re facing the end of the world.”
This story was originally featured on Fortune.com