How a Cyber Attack Affects the Price of a Litre of Milk
We don't often connect the price of our daily essentials with the world of cybercrime - but recently we have all had to a little more. What might seem a distant concept is hitting home as a series of cyber attacks on critical parts of retail supply chain is having a very real consequence for your weekly shop. So, how can a cyber attack affect the price of a litre of milk, and why you might find yourself heading to a different store?
The Ripple Effect
Imagine a large supermarket chain falls victim to a sophisticated cyber attack. The hackers target the retailer's supply chain management system, disrupting their ability to order and distribute products. Suddenly, lorries can't deliver goods to stores, warehouses are in chaos, and shelves start to empty.
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Milk, a highly perishable and essential product, is particularly vulnerable in this scenario. With distribution networks crippled, deliveries are delayed or cancelled altogether. Your local store, unable to replenish its stock, runs out of milk.
The Consumer's Dilemma
As a consumer, you now face a choice. Do you:
Wait for your usual store to resolve the issue, hoping that milk supplies will return to normal soon?
Visit another, possibly more distant, store that still has milk in stock?
Switch to a local shop or convenience store, which may charge a premium for the same product?
In the short term, you'll likely opt for the second or third option. You need milk for your family, and you can't wait indefinitely. This increased demand at alternative retailers can lead to a price increase. The basic economic principle of supply and demand kicks in: when supply is low and demand is high, prices rise. So, you might end up paying more for that litre of milk.
Ransomware and the Price of Milk
In many cyber attacks, the perpetrators demand a ransom to restore the compromised systems. This adds another layer of complexity to the situation. Store, like any other business, must weigh up the costs of paying the ransom against the potential losses from prolonged disruption.
If a store pays the ransom, it might regain control of its systems more quickly, potentially minimising the impact on the supply chain and, consequently, the price of goods like milk. However, paying a ransom is a controversial decision. There's no guarantee that the hackers will keep their word, and it could encourage further attacks.
If the store chooses not to pay, the disruption could last much longer. This could lead to more significant shortages, wider price increases, and a greater loss of customer trust.
Long-Term Consequences
But what about the long term? Would you ever go back to the store that failed to provide you with a basic essential?
The answer depends on several factors:
How long did the disruption last? A few days of empty shelves might be forgivable, but a prolonged shortage could erode customer loyalty.
How well did the store communicate? Clear and timely communication about the issue and when supplies would return could mitigate frustration.
What alternatives did you find? If you discovered a new store with better prices, a wider selection, or a more pleasant shopping experience, you might be less inclined to return to your old one.
A cyber-attack, especially one involving a ransom demand, can damage a retailer's reputation and lead to a loss of customers. Consumers may switch to competitors perceived as more reliable, potentially causing long-term financial repercussions for the affected store.
The Bigger Picture
This scenario isn't limited to milk of course and those organisations being attacked directly right now have little control over what is happening - nothing is 100% secure remember. A cyber attack can disrupt the supply of any essential goods, from bread and eggs to fuel and medicine. The more reliant we become on interconnected digital systems, the more vulnerable we are to these kinds of disruptions.
As consumers, we may not think about cyber security on a daily basis. But the next time you reach for a pint of milk, remember that its journey from farm to shelf can be disrupted by a single cyber attack. And that disruption can end up costing you, and your suppliers, more than just a few extra pence. It might cost a retailer your loyalty.
Considering this tangible impact on consumers and the potential for lasting reputational damage, how does this story prompt business leaders to action, to urgently review their IT and security infrastructure, and to proactively fortify their defenses to avoid becoming the next headline that erodes customer trust and market standing?
If this blog has raised a few questions and you would like to have a discussion regarding your current cyber security position and on how our Cyber Team can help you improve your business conversation on cyber security, get in touch.