Ransomware Attack on Shutterfly Disrupts Photo Service Mid-Holiday Season

Photography behemoth Shutterfly is suffering disruption to its business due to a ransomware attack that reportedly encrypted over 4,000 endpoints, including 120 VMware ESXi servers.

A leader in the photography sector, Shutterfly offers a range of photo-related services to more than 10 million customers annually.

Some two weeks ago, the California-based company was hit by Conti ransomware, in what was likely a premeditated attack to disrupt holiday orders and increase the chances of a ransom payment.

In typical fashion, the Conti gang published a data leak page containing sample files stolen during the attack, including legal agreements, bank and merchant account information, login credentials for corporate servers and spreadsheets.

The cyber crooks also claim to have the source code for Shutterfly's store.

The company confirmed the incident in a written statement to BleepingComputer upon inquiry (reproduced below).

"Shutterfly, LLC recently experienced a ransomware attack on parts of our network. This incident has not impacted our Shutterfly.com, Snapfish, TinyPrints or Spoonflower sites. However, portions of our Lifetouch and BorrowLenses business, Groovebook, manufacturing and some corporate systems have been experiencing interruptions. We engaged third-party cybersecurity experts, informed law enforcement, and have been working around the clock to address the incident."

"As part of our ongoing investigation, we are also assessing the full scope of any data that may have been affected. We do not store credit card, financial account information or the Social Security numbers of our Shutterfly.com, Snapfish, Lifetouch, TinyPrints, BorrowLenses, or Spoonflower customers, and so none of that information was impacted in this incident. However, understanding the nature of the data that may have been affected is a key priority and that investigation is ongoing. We will continue to provide updates as appropriate." - Shutterfly.

While Shutterfly claims it doesn’t store credit card data, sources tell BleepingComputer that the leak also contains what appears to be “the last four digits of credit cards.”

Conti is allegedly demanding “millions of dollars” in ransom. It is unclear if the company is willing to pay to keep the stolen data from leaking out. Going by the boilerplate statement above, it isn’t. However, while the disruption to its services seems minor, the nature of the stolen data may coerce Shutterfly into negotiations.

The company is now telling customers that it is “experiencing high demand and extraordinary global supply chain events that could cause delays.”