Introduction
In November 2024 [2] [3] [6] [7] [8] [9] [10], a significant ransomware attack attributed to the Termite group targeted Blue Yonder [8], a supply chain technology provider and subsidiary of Panasonic [2]. This attack disrupted operations for several major clients [4] [7], highlighting the vulnerabilities in supply chain networks and the evolving threat landscape of ransomware attacks.
Description
In November 2024 [2] [3] [6] [7] [8] [9] [10], a ransomware attack attributed to the Termite group targeted Blue Yonder [8], a supply chain technology provider and subsidiary of Panasonic [2], disrupting operations for major clients such as Starbucks [2] [5] [9], BIC [2] [7], Morrisons, 7-Eleven, Albertsons [5], DHL [5], Walgreens [5], and UK grocery chains Sainsbury’s and Morrisons [4], just ahead of the Thanksgiving holiday. The attack, which began on November 21, affected Blue Yonder’s critical supply chain management systems and its managed services-hosted environment, resulting in the exfiltration of 680GB of sensitive data, including database dumps [2] [5] [10], over 16,000 email addresses [2] [4] [7] [8], and more than 200,000 insurance documents [4] [8] [9]. Termite has threatened to publicly release parts of this data if ransom demands are not met [9], raising concerns about its potential use in future attacks. Following the incident [10], Starbucks faced disruptions in its staff scheduling system while continuing payroll operations [7], BIC experienced limited shipping delays [7], and Morrisons dealt with challenges in fresh food inventory management [7], resorting to backup systems to alleviate the situation [7].
Emerging in October 2024 [2], Termite is believed to be a rebranding of the Babuk ransomware group [3], sharing significant similarities in their binaries [1]. The group has quickly expanded its operational footprint [9], claiming to have affected a total of seven victims globally, including two in the US [1], primarily in Europe and North America [8]. Termite has a history of over 65 attacks across various sectors, including government agencies [5] [8] [9], education [2] [5] [9], disability support services [9], oil and gas [8] [9], water treatment [9], and automotive manufacturing [8] [9]. Recent targets include Conseil Scolaire Viamonde in Canada and the government of La Réunion [4], as well as Nifast and Oman Oil.
The ransomware used in the attack appears to be a modified version of Babuk [4], which encrypts files and appends a .termite extension [4] [5], while also leaving a ransom note titled “How To Restore Your Files.txt.” Analysts indicate that the attackers likely gained access through phishing, exploiting vulnerabilities [2] [4], or using purchased credentials acquired on the dark web. The execution of the Termite attack involved terminating service and backup processes [1], discovering network shares and drives [1], and retrieving shared resource information before encrypting files [1]. Additionally, Termite erased all shadow copies and cleared the recycle bin to prevent recovery of encrypted files [1]. Researchers have noted that Termite may also employ a watering hole attack method involving malicious ad software [6], which can lead to the deployment of information-stealing malware [6], such as Red Line Stealer, to collect user credentials [6]. However, it remains unclear if these techniques were utilized in the Blue Yonder attack [6]. This incident is characterized as a double-extortion attack, involving both data encryption and theft [4]. Blue Yonder is currently investigating the claims of data theft and collaborating with external cybersecurity experts to restore its systems. The company has implemented enhanced defensive and forensic protocols and has notified affected customers about the operational disruptions. The extent of the impact on its customer base [3], which exceeds 3,000 organizations [3], remains uncertain [3] [4] [6]. The UK’s Information Commissioner’s Office has not yet received a data breach report from Blue Yonder [3], highlighting the ongoing challenges in addressing the vulnerabilities of supply chain networks to cyberattacks, which can lead to widespread operational disruptions and financial losses [2]. Cybersecurity experts have urged organizations to strengthen their defenses against evolving ransomware threats and to adopt proactive threat intelligence measures to counter these tactics.
Conclusion
The ransomware attack on Blue Yonder underscores the critical vulnerabilities present in supply chain networks and the potential for widespread operational disruptions. The incident has prompted affected companies to implement backup systems and collaborate with cybersecurity experts to mitigate the impact. Moving forward, organizations are urged to enhance their cybersecurity defenses and adopt proactive threat intelligence measures to counter the evolving tactics of ransomware groups like Termite. The incident serves as a stark reminder of the importance of robust cybersecurity strategies in safeguarding against future attacks.
References
[1] https://www.scworld.com/brief/nascent-termite-ransomware-gang-behind-blue-yonder-hack
[2] https://cybersecuritynews.com/starbucks-third-party-ransomware-attack/
[3] https://techcrunch.com/2024/12/09/blue-yonder-investigating-data-theft-claims-after-ransomware-gang-takes-credit-for-cyberattack/
[4] https://www.itpro.com/security/ransomware/termite-ransomware-gang-claims-responsibility-for-blue-yonder-cyber-attack
[5] https://uk.pcmag.com/security/155803/blue-yonder-hack-tied-to-new-ransomware-gang-termite
[6] https://finance.yahoo.com/news/blue-yonder-investigating-data-leak-103510284.html
[7] https://borncity.com/win/2024/12/09/blue-yonder-termite-ransomware-group-claims-hack-from-nov-2025/
[8] https://www.infosecurity-magazine.com/news/termite-ransomware-blue-yonder/
[9] https://cyberscoop.com/termite-ransomware-blue-yonder-disruption/
[10] https://www.cyberdaily.au/security/11465-new-ransomware-gang-claims-blue-yonder-cyber-attack
