Summary:
On November 21, 2024, a ransomware attack on Blue Yonder, an Arizona-based supply chain management and cloud services provider, disrupted operations for major clients, including Starbucks, U.K. grocery chain Sainsbury, and potentially Ford.

Starbucks reported that the attack compromised a third-party software system used to manage baristas' schedules, forcing the company to implement manual processes to ensure timely employee payments. "Starbucks’ store leadership have advised their employees on how to work around the outage manually, and the company will make sure everyone gets paid for all hours worked," said Starbucks spokesperson Jaci Anderson.

Similarly, two of the top four U.K. grocery chains reported taking steps to manage the disruption caused by the Blue Yonder outage. Automaker Ford announced it is investigating any potential impact on its operations, as Blue Yonder serves numerous multinational corporations across retail, manufacturing, and distribution sectors.

Blue Yonder has engaged cybersecurity firm CrowdStrike to assist in recovery efforts and is working to restore its managed services hosted environment. However, the company has not disclosed which clients were affected or whether data was exfiltrated during the attack.

This incident follows a broader trend of ransomware attacks, which have become especially pervasive during the holiday season, a time when businesses face increased pressure to fulfill orders. Cybercriminals extorted a record $1.1 billion globally in 2023, and research from Semperis indicates that 86% of surveyed organizations targeted by ransomware were attacked on a holiday or weekend.

Analyst Comments:
The ransomware attack on Blue Yonder demonstrates how disruptions can ripple through high-profile clients like Starbucks and Sainsbury, with significant operational and reputational consequences.

The timing of the attack—just before the holiday shopping season—appears calculated to maximize disruption and ransom demands. For Starbucks, the forced shift to manual processes to manage employee payments underscores the need for robust business continuity plans. This challenge comes at a difficult time for Starbucks CEO Brian Niccol, who is already dealing with declining sales over the past three quarters.

Suggested Corrections:
Blue Yonder’s decision to enlist CrowdStrike to handle the incident is a positive step toward mitigating damage. This incident also serves as a critical reminder that holiday seasons bring heightened risks for businesses. Attackers often exploit increased demand and reduced staffing to strike at vulnerable times. Organizations relying on supply chain services should prioritize building robust contingency plans and strengthening their cybersecurity defenses to prepare for such threats.

Link(s):
https://securityaffairs.com/171434/uncategorized/blue-yonder-ransomware-attack.html