A recent ransomware attack on Blue Yonder, a prominent supply chain management software provider, has disrupted internal operations at Starbucks, a significant client of the firm. The cyberattack, which initiated on November 21, 2024, has compelled Starbucks to revert to manual processes for managing essential functions such as employee scheduling and payroll.
The attack primarily affected Blue Yonder's systems, generating a cascade of challenges for its customers, including Starbucks. While back-end processes such as time tracking and schedule management were significantly hampered, the company confirmed that customer service and store operations remained largely unaffected.
A spokesperson for Starbucks reassured stakeholders, stating, “We are working to ensure employees are fully paid for their hours worked with limited disruption or discrepancy," as reported in a piece by Reuters.
The implications of this data breach extend beyond immediate operational concerns. Evaa Saiwal, Head of Cyber Insurance at Policybazaar for Business, discussed the wider ramifications of such attacks, noting, “Unlike breaches involving stolen data, ransomware locks businesses out of their systems, halting operations and causing significant financial impact.”
Saiwal further elaborated on the financial strain that such cyberattacks impose on affected businesses, revealing that in 2023, the average recovery cost for a ransomware attack amounted to $1.82 million. Alarmingly, 84% of organisations impacted by such attacks reported experiencing business losses.
Addressing the urgent need for enhanced cyber resilience, Saiwal highlighted the crucial role of cyber insurance in safeguarding against these risks. “Comprehensive cyber insurance provides critical coverage, including ransomware payments, third-party liability protection, and business interruption coverage. It ensures businesses recover and come back stronger,” she stated.
Meanwhile, Dhruvil Sanghvi, CEO of LogiNext, noted the challenges faced by the logistics and supply chain sectors, indicating that "the logistics and supply chain market is plagued by legacy technology solutions that have not been updated to address evolving cyber threats." He asserted that to effectively address these modern risks, businesses must undertake swift and proactive measures by significantly upgrading their security protocols within technology platforms.
As the industry navigates through these cybersecurity challenges, the ramifications of such attacks reflect a pressing need for businesses to bolster their cyber defences and rethink their approaches to operational security.
Source: Noah Wire Services