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M&S Faces £300M Loss After Cyberattack Involving DragonForce and Scattered Spider

 

Marks & Spencer has resumed its online services after a serious cyberattack earlier this year that disrupted its operations and is expected to slash profits by £300 million. The British retail giant’s digital operations were hit hard, and recent developments suggest the breach may have been orchestrated by multiple hacker groups. 

A hacking group known as DragonForce is now linked to the incident. According to reports by the BBC, the group sent an email to M&S CEO Stuart Machin shortly after the attack, boasting about their success and demanding ransom. The message, written in aggressive and alarming language, implied the group had encrypted the retailer’s servers. DragonForce, which has rebranded itself as a “Ransomware Cartel,” operates by offering malware tools to affiliates in exchange for a percentage of ransom earnings. 

Originally emerging in 2023, the group has become increasingly active on major dark web forums in recent months. While some cybersecurity experts believe the group is based in Malaysia, others speculate ties to Russia. They have also been linked to a similar attack on the Co-op. Meanwhile, another group, Scattered Spider, had earlier been suspected of executing the attack. Known for its advanced social engineering techniques, the group is composed primarily of young hackers from the US and UK. They have previously impersonated IT personnel and used SIM swapping tactics to breach organizations. 

In 2023, they gained notoriety after cyberattacks on major US casino operators like Caesars Entertainment and MGM Resorts, resulting in multi-million-dollar ransoms. The M&S cyberattack, disclosed on April 22, disrupted online orders and even stopped contactless payments in physical stores. As a result, hundreds of agency workers were temporarily relieved from duty. The company confirmed that customer data—including names, email addresses, addresses, and birth dates—was compromised during the breach. The cause, according to Machin, was human error by a third-party service provider. 

In response to the growing threat, the UK’s National Cyber Security Centre (NCSC) issued industry-wide guidance. Law enforcement agencies, including the National Crime Agency (NCA), are actively investigating the case and considering whether the incidents involving these hacker groups are interconnected. The financial impact has been significant. M&S’s market value dropped by £650 million in the days following the attack. Despite these setbacks, the company has now reopened its standard delivery service in England, Scotland, and Wales, with additional services like click-and-collect and international orders expected to follow soon. 

In a recent statement, M&S emphasized its commitment to restoring customer trust and maintaining high service standards. The company said, “Our stores have remained operational, and we’re now focused on delivering the quality and service our customers expect as we recover from this disruption.”

TCS Investigates Possible Link to M&S Cyberattack

 

Tata Consultancy Services (TCS), a leading Indian IT services firm under the Tata Group umbrella, is reportedly investigating whether its systems played any role in the recent ransomware attack that disrupted operations at British retail giant Marks & Spencer (M&S). 

The cyberattack, which occurred in late April 2025, was initially described by M&S as a “cyber incident.” However, subsequent reports confirmed it to be a ransomware assault that severely affected both in-store and online operations. Key services such as contactless payments and Click and Collect were disabled, while online orders came to a standstill. 

Several internal systems were reportedly taken offline as a containment measure. The prolonged disruption, lasting several weeks, had a significant impact on M&S’s business. The company’s market capitalization is estimated to have dropped by £1 billion, and there are allegations that customer data may have been compromised in the breach. 

As M&S continues recovery efforts, TCS is conducting a thorough internal investigation to determine whether any part of its infrastructure might have been involved in the incident. TCS has long been a key technology partner for M&S, which adds urgency to the ongoing review. The attack has once again brought cybersecurity solutions into focus. 

Platforms like Keeper Security, known for their zero-knowledge encryption-based password managers and digital vaults, are gaining traction. Keeper offers features such as two-factor authentication, secure file storage, dark web monitoring, and real-time breach alerts—tools that are increasingly vital in defending against sophisticated cyber threats like ransomware. 

M&S Faces Multi-million Lawsuit Following Major Data Breach

 

Following the cyberattack that affected the retailer for a month, Marks & Spencer is reportedly facing a multimillion-pound lawsuit over the loss of customer data.

It acknowledged earlier this month that customer information, including names, email addresses, postal addresses, and dates of birth, had been stolen by hackers. Chief Executive Stuart Machin stated that the "sophisticated nature of the incident" had allowed access to the data, although he emphasised that it does not include account passwords or payment and card information, which M&S claims it does not store on its servers. 

According to The Sunday Mail, Thompsons Solicitors is now pursuing a class action lawsuit against M&S for exposing customers to the risk of scams by failing to safeguard their data. 

Senior Partner Patrick McGuire of Thompsons Solicitors stated that the firm has been "inundated by Scots M&S clients who have been caught up in this online heist and are contacting Thompsons. We have a situation here where one of the most famous retailers in the UK has allowed criminals to pillage the personal details of hundreds of thousands of Scottish customers. I think this will be the biggest data theft case we have ever been involved in.”

Investors will be expecting that Marks & Spencer will provide further information on the impact of the disastrous cyber assault that has interrupted all online orders at the retail giant. On Friday, the company will provide an update to the stock market on its financial performance over the past year. However, emphasis will be focused on how the company is dealing with weeks of interruption. It's been a month since the retailer was hit by a major "cyber incident" allegedly tied to hacking organisation Scattered Spider.

As a result, the company has suspended online orders for the past three weeks, and payments and click-and-collect orders have also been affected. M&S's store availability was also impacted by the outage, resulting in some bare shelves as it replaced elements of its IT systems, but said it was recovering swiftly in an update last Thursday.

Its stores have remained open, and availability is "now in a much more normal place, with stores well stocked this week". The retailer is yet to reveal the financial cost of the incident, although it is believed to have lost tens of millions of pounds in sales. 

Analysts at Barclays believe the cyber attack might cost £200 million in the fiscal year 2025/26, but this will be mitigated by an insurance payout of roughly £100 million. The attack struck the business following an excellent run under Stuart Machin's leadership, with shares reaching a nearly nine-year high last month before falling recently.