Lee Enterprises Ransomware Attack: Freelancer & Contractor Payments Halted

Lee Enterprises Ransomware Attack Impacts Freelancer Payments

A suspected ransomware attack targeting Lee Enterprises, a major newspaper publisher, continues to cause disruption as it enters its second month.

The ongoing cyberattack is now reportedly affecting payments to freelancers and contractors associated with the company, as revealed by TechCrunch.

Initial Cyberattack and Disruption

The cyber incident at Lee Enterprises first occurred on February 3rd, leading to widespread system outages and significant operational challenges across numerous newspapers in the United States.

These disruptions included delays in the production and delivery of printed newspaper editions.

On February 18th, Lee Enterprises officially acknowledged that the attackers had encrypted critical applications.

This encryption impacted several core business functions, including product distribution, billing processes, collections, and payments to vendors.

Contractor Experiences Payment Delays

A contractor working for a Lee Enterprises-owned publication, requesting anonymity due to concerns about potential repercussions, reported not receiving payment for completed work a month after the attack.

Despite assurances from Lee Enterprises that the issue was being addressed, the contractor has received no further updates since mid-February.

The outstanding amount owed is substantial, causing considerable anxiety and financial uncertainty.

Vendor Network Impact

Lee Enterprises relies on a diverse network of vendors, encompassing both businesses and individual freelance professionals.

These vendors provide a wide range of services, including the creation of editorial content.

Currently, there is no clear timeline available regarding when the vendor payment system will be fully restored.

Salaried Staff and Reimbursements

Salaried employees of Lee Enterprises have not been directly affected by the payment issues.

However, a reimbursement system used by employees to claim expenses remains inaccessible, according to a source familiar with the situation.

Company Response and Financial Implications

When questioned about payments to vendors, freelancers, and contractors, Lee Enterprises spokesperson Tracy Rouch declined to provide specific details.

Rouch referred inquiries to the company’s regulatory filing from February 18th.

That filing indicated that the cyberattack is “reasonably likely to have a material impact on the Company’s financial condition or results of operations.”

Ransomware Group Claims Responsibility

The Qilin ransomware gang, known for conducting disruptive cyberattacks, has claimed responsibility for the incident at Lee Enterprises.

The claim was made on the group’s dark web leak site, a platform used to pressure victims into paying a ransom.

Lee Enterprises has confirmed awareness of the claims and is currently investigating their validity.

Reporting Contribution

Carly Page contributed to this report.

If you possess additional information regarding the cyberattack at Lee Enterprises, please contact Zack Whittaker securely via Signal and WhatsApp at +1 646-755-8849. Secure document sharing is also available through TechCrunch’s SecureDrop.