Royal Mail ransomware attack leaves firms in limboon January 17, 2023 at 12:12 am

The record collecting community are a pretty understanding bunch, according to David MacDonald.

The 60 year-old, who runs Blue Sky Vinyl, is lucky but he admits: “Their patience will only go so far.”

Why? Because Mr MacDonald, like many other small business owners, has been waiting for nearly a week to send out international orders via Royal Mail.

And, as others have told the BBC, he has absolutely no idea when his shipments can resume.

Last Wednesday, Royal Mail asked customers to stop sending letters and parcels overseas after criminals launched a ransomware attack on the company.

It has impacted a system used by Royal Mail to prepare mail for despatch abroad, and to track and trace overseas items.

The problem first emerged on Tuesday, 10 January. Customers were told of the problem the following day.

“As with all technical issues, we had to rule out a lot of things to ensure we only shared accurate information,” said a spokesman for Royal Mail.

The company has assured customers that it is “working around the clock” to resolve the issue.

But Mr MacDonald says a “disappointing” lack of regular updates has left his business in stasis.

“There is no indication of when things will be fixed,” he says. “It could be a week, it could be a month, it could be six months.

“If it is going to be a month or six months then at least give us the opportunity as small businesses to make decisions that can overcome this hurdle.”

Around 45% of Blue Sky Vinyl’s business comes from overseas including Australia, New Zealand, Singapore, Japan and China.

There are even buyers in Ukraine though Mr MacDonald recently had to explain to a customer there why his order was delayed. “He said he’ll be patient and wait,” says Mr MacDonald.

Royal Mail says: “We understand how frustrating this situation is for our customers, and we apologise for the disruption.

“As with all such technical issues, we are exploring multiple workarounds to restore our systems as quickly and safely as possible.”

But a week is a long time in business.

Firms say that the delay to international shipments is compounding problems they have been facing since before Christmas when Royal Mail workers went on strike.

Mr MacDonald said: “We are giving out refunds from parcels that haven’t arrived that were posted in November and the refund compensation system for Royal Mail is running at a snail’s pace.”

It is “a big problem on top of a big problem”, according to Andrew Bradley who runs Lello Living, a family business which makes prints, picture frames and homeware.

Even before the ransomware attack on Royal Mail, Mr Bradley said some international customers had been waiting for more than a month for parcels.

“At the moment I am just trying to placate customers,” he said. But as a small business, his hands are tied.

Once a parcel is sent “we can’t get it back”, he said, so the package is just sitting there.

It is expensive to send a replacement and doubly difficult for a firm such as Lello Living which produces personalised prints.

“We sell a lot on websites like Etsy and we are seeing one or two star reviews,” he said.

“At the moment, the majority of people are understanding and patient but we are seeing that patience start to dissipate.”

Simon Thompson, chief executive of Royal Mail, is likely to face questions about how the company has responded to the attack on Tuesday when he appears before MPs on the Business, Energy and Industrial Strategy Committee.

In the meantime, freelance illustrator Danielle English, aged 31, says that the delays caused by the ransomware attack have “been quite a big blow” financially.

The artist specialises in fantasy and sci-fi images and relies on her online shop, Kanizo, for half of her income.

“Just today I’ve had to refund a few orders that were made over the weekend that I now can’t fulfil and I would say about 70% of those were international,” she says.

Ms English said that she is trying her best to keep her customers up to date “but obviously that is so limited”.

“I don’t want to keep them waiting too long because I don’t want them to think I’m not a legit business by not sending out their order, but there is only so much I can tell them really.”

Others such as Karen Gilroy don’t know whether to go ahead and book a courier service to send deliveries to countries such as the US or wait until Royal Mail can start shipping again.

The 62 year-old retired civil servant runs a sewing business, called KraftyKoriginal, and says it usually costs around £20 to send packages overseas with Royal Mail.

She could use a specialist parcel company but they are more expensive – a cost she is not comfortable passing onto her customers.

“I suppose I could ask them but it’s not really their fault is it?” she says. “If I decide to send via courier I think it is for me to eat up the cost.”

At the moment she is not sure what to do – book a courier in advance and risk losing money if Royal Mail services resume or wait and see?

“I’m sort of hanging on and hanging on thinking ‘surely this week they’ll sort it out’ but who knows?”