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Bag Makers Suffers Malware Attack

The Top 40 firm’s phones, fax lines, and website were down as of Tuesday. Email access was limited.

UPDATED: Jan. 21, 3:30 pm

More than a week after hackers launched a malware attack on Bag Makers (asi/37940), the Top 40 supplier says it has made substantial progress toward regaining control of its systems. In statements shared on social media, the Union, IL-based firm said that its website is operational again and that its phone lines are largely restored.

“Please be aware the phone system is not 100% operational yet, so you may get a busy signal if all agents are busy helping other customers,” Bag Makers noted in a Jan. 17 tweet. “If this happens, please call back.” Meanwhile, Bag Makers announced in a Tuesday tweet that its website was “back up and running! We are making great progress on our remaining systems. Thanks for your continued support!”

For background on the malware attack, read the original report and previous update below:

UPDATED: Jan. 15, 6:06 pm

Top 40 promotional products supplier Bag Makers (asi/37940), Counselor’s 2020 Supplier of the Year, said late Wednesday that it has resumed limited operations following the Monday malware attack upon its information technology systems. “The company has re-established limited email capabilities and is proceeding with manual order processing, production, and shipping,” the Union, IL-based firm said in a statement.

As of this writing, Bag Makers’ website remained out of commission. However, the company is posting basic status updates on the site, www.bagmakersinc.com.

Regarding order status: Bag Makers said that it’s currently producing and shipping orders that had completed all final approvals prior to the end of the day on Jan. 10. However, if an order was submitted without complete information or had not been cleared for final approval prior to Jan. 13, then customers should email salessupport@bagmakersinc.com. The supplier said it will work with those distributors to identify their current order status.

In a statement, Bag Makers said that it’s “accepting new orders and reorders through its normal order submission process. Customers can find up-to-date 2020 product pricing on ESP. To ensure efficient order processing, Bag Makers asks customers to include both a purchase order and artwork in one email for new orders. For reorders, customers are asked to include the most current Bag Makers job number, which can be found on the most recent project proof or invoice. Due to current manual processing capabilities, Bag Makers is unable to guarantee normal production times. Customers with tight project deadlines should email salessupport@bagmakersinc.com for more information.”

“Bag Makers thanks customers for their continued support and patience.”

ORIGINAL ARTICLE PUBLISHED JANUARY 14

Hackers have struck again in the promotional products market, launching another malware attack against one of the $24.7 billion industry’s largest companies.

Top 40 supplier Bag Makers (asi/37940), Counselor’s 2020 Supplier of the Year, said Tuesday that it was infiltrated by malware. The attack, which began Monday, encrypted some information technology systems and disrupted customer access to services. Union, IL-based Bag Makers said that its phones, fax lines and website are down. Email access is limited.

“Upon discovery of the attack, the company’s technical team, with the support of third-party advisers, immediately began investigating and working on a recovery plan with the goal of restoring service as quickly as possible,” Bag Makers said in a statement. “At this time, the company has seen no evidence that customer or employee data has been compromised or improperly accessed.”

Bag Makers said it will provider customers with updates as the situation progresses. “Bag Makers appreciates customers’ patience as it works toward a resolution,” the company said.

In October 2019, alphabroder (asi/34063), promo’s largest supplier, suffered a malware attack that temporarily crippled its order processing and shipping platform. Ultimately, the Trevose, PA-based company paid a ransom in connection with the cyber assault.

Then, in November, two Top 40 distributors fell prey to a phishing scam that swindled the firms out of more than $100,000 combined. In the deviously subtle scheme, the hackers emailed the distributors from an email address featuring a domain that was nearly identical – but for one letter – to the legitimate email address for a Top 40 supplier. The crooks lied that the supplier had changed banks. They instructed that future automated clearing house payments – electronic payments and automated money transfers that don’t involve wire transfers, credit card networks or cash – be remitted to the new bank accounts. Unfortunately, several distributors fell for the ruse.

Over the last year-and-a-half or so, a growing number of industry firms have been hacked. In April 2018, Top 40 supplier Hit Promotional Products (asi/61125) was the victim of a malware attack that disrupted its computer systems. Around the same time, other firms fell prey to a phishing scam in which hackers, posing as customers, got employees to click on corrupted links that launched malware.

With reported 2018 North American promotional products revenue of $56.1 million, Bag Makers ranks 27th on Counselor’s latest list of the largest suppliers in the industry.