Security News > 2021 > March > Payroll/HR Giant PrismHR Hit by Ransomware?

Countless small businesses turn to PEOs in part because they simplify compliance with various state payroll taxes, and because PEOs are the easiest way for small businesses to pool their resources and obtain more favorable health insurance rates for their employees.

In a notice sent to its PEO partners, PrismHR said it detected suspicious activity within its networks on Feb. 28, and that it disabled access to its platform for all users in an effort to contain the security incident.

Jacob Cloran is co-founder of Decimal, a company that does accounting for small businesses, many of whom rely on PEOs affected by the PrismHR outage.

Decimal itself uses a PEO that relies on PrismHR. "We don't have a good option to run our payroll this week, and the message we've received from our PEO doesn't give me a lot of confidence we'll be able to do that," Cloran said.

Cloran said while there are other cloud-based companies that work with multiple PEOs, PrismHR is by far the largest.

PrismHR said in a statement to its PEO customers that while its investigation and response to the incident is ongoing, the company "Is not aware of any sensitive data being breached or compromised."

News URL

https://krebsonsecurity.com/2021/03/payroll-hr-giant-prismhr-hit-by-ransomware/