Cyber attack affects Federal Group payroll system but staff will still be paid


Tasmania’s largest private sector employer has been affected by a cyber attack for the second this year. 

Federal Group yesterday made advance payments to staff after the payroll system it uses — run by global company Frontier Software — was affected by a “cyber incident”.

Federal Group is one of more than 1,500 organisations, including the South Australian government and the Melbourne Theatre Company, that use Frontier’s software. 

In April, the gaming and hospitality giant’s poker machines and hotel check-in systems were affected by a ransomware attack.

In a statement, Federal Group executive manager Daniel Hanna said the incident was outside of the company’s control and “not related to an incident that impacted Federal Group earlier this year”.

“The situation is impacting a number of businesses, including Federal Group,” Mr Hanna said.

“Federal Group has not been advised of any breaches of personal information.” 

In a note to staff on Tuesday, Federal Group assured employees they would be continued to be paid.

Staff members who receive their pay each week have received an advance of $250, with Federal committing to pay the rest of their salary today. 

The Saffire Resort, Coles Bay, Tasmania, seen from the air.
The gaming and hospitality company is Tasmania’s largest private sector employer.(Supplied: Circa Morris-Nunn Architects)

Assurances sought on workers’ personal information

Frontier Software said it had called in cyber security experts to restore access to its systems.

“While investigations are ongoing, we are aware that this incident has caused some disruption to the services we provide to our customers,” the company said in an update on Tuesday. 

“We are committed to communicating and working closely with our customers to minimise any impact on their operations during this time.”

United Workers Union national casinos’ director Dario Mujcic said he wanted assurances from Federal Group in coming days that employees’ personal information had not been compromised.

“The next bit is just double checking that we’re really confident that people’s personal information is safe and secure,” he said.

“It’s a legitimate concern that people have. We want to make sure it’s not a problem in coming days.”

Mr Mujcic said a delay in payments would cause issues for some staff members, but Federal Group’s advance payment was a “pretty good attempt” to deal with it.

“If there are members who have got a particular situation that’s problematic we’ll talk to them and try to help.”



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