A method for indirectly detecting a movement of a machine and a failure of a speed sensor is disclosed. The method may include receiving an operator input signal, and determining a first factor based on the operator input signal. The method may also include measuring a machine operation parameter, and determining a second factor based on the machine operation parameter. The method may further include identifying a movement of the machine if the first factor is out of a first threshold range and the second factor is out of a second threshold range for at least a first threshold length of time. The method may also include determining a speed sensor failure if the movement of the machine is identified and no speed is detected by the speed sensor for at least a second threshold length of time.