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Showing posts with label Marks & Spencer. Show all posts

M&S Cyberattack: Retailer Issues Fresh Warning to Shoppers

 

Marks & Spencer (M&S) suffered a severe cyberattack in April 2025, orchestrated by the ransomware group known as Scattered Spider, with the ransomware called DragonForce. This breach forced M&S to halt all online transactions for nearly six weeks, disrupting its operations during a traditionally strong trading period around Easter. 

The attackers first infiltrated M&S's network through social engineering tactics aimed at a third-party IT helpdesk contractor, Tata Consultancy Services, tricking staff into granting access. This human error allowed the hackers to steal sensitive customer personal data, including names, addresses, emails, phone numbers, birthdates, and order histories, though no payment details or passwords were compromised.

As a result, M&S had to suspend online shopping completely and revert to manual processes for inventory and logistics, which led to empty shelves and disrupted service in many stores. Contactless payments and order collection systems failed at the outset of the incident, adding to customer frustration. M&S publicly apologized and reset all customer passwords on affected accounts as a precaution against subsequent phishing attacks using the stolen data.

Financially, the incident is estimated to have cost M&S approximately £300 million in lost profits, which significantly impacted its half-year results. Despite the disruption, M&S’s revenue during the affected period remained relatively stable, reflecting growth in grocery and clothing/home segments, though online market share was partly lost to competitors like Next. The full impact on profits and sales was to be revealed in M&S’s upcoming financial report.

The cyber attack highlighted vulnerabilities in traditional cybersecurity defenses focused on inbound threats, as the ransomware attack involved a "double extortion" technique where data was exfiltrated before encryption, and legacy tools failed to detect the outbound data theft. Experts suggest that more advanced anti-data exfiltration capabilities could have mitigated damage. M&S is reviewing its cybersecurity posture and continuing to recover operationally while managing costs and store investments moving forward.

M&S shoppers were urged to remain vigilant against phishing scams, as criminals exploit stolen personal data for targeted attacks. The incident underscores the evolving threats retailers face from ransomware and social engineering attacks on supply chains and third-party vendors. Overall, the attack marked a significant challenge for M&S’s digital and retail operations with a wide-reaching customer impact and financial implications.

Scattered Spider Cyberattack Cripples M&S, Co-op: DragonForce Ransomware Causes Weeks-Long Disruption

 

Weeks after a significant cyberattack disrupted operations at major British retailers, companies like Marks & Spencer (M&S) and Co-op are still struggling to restore full functionality. Despite public reassurances, the scope of the attack is proving more serious than initially acknowledged. M&S CEO Stuart Machin recently confirmed that personal customer data had been accessed, prompting the company to require password resets for online accounts. Online orders on the M&S website remain suspended weeks after the breach, and no clear timeline has been offered for full recovery. 

The attack first became public on April 25 when M&S halted its online operations due to a cyber intrusion. Within days, Co-op revealed it had also been targeted in an attempted hack, which disrupted several services. Harrods, another luxury retailer, was also reportedly affected during this wave of cyberattacks. While M&S is still unable to process online sales, Co-op has only just resumed stocking its shelves, and both companies remain silent about when operations might return to normal. Government officials have weighed in on the seriousness of the incident. 

Cabinet Office Minister Pat McFadden called the attack a “wake-up call” for British businesses, highlighting the urgent need for enhanced cybersecurity protocols. Financial losses have been steep. M&S is reportedly losing £3.5 million per day while its website remains offline, and its stock has dropped by an estimated half a billion pounds in market value. Co-op also disclosed that customer data had been compromised, and they experienced issues with card payments at the height of the disruption. 

Investigations suggest the cybercriminal group known as Scattered Spider is responsible. Known for targeting large enterprises, the group is believed to have used a ransomware strain called DragonForce to paralyze systems. According to cybersecurity experts, the attackers may have exploited unpatched vulnerabilities and misconfigured systems to gain entry. Reports indicate they employed SIM-swapping tactics to hijack phone numbers and impersonate employees, fooling IT help desks into granting system access. Once inside, the hackers are believed to have compromised Microsoft Active Directory—a central hub that connects internal networks—potentially gaining access to crucial files and passwords. 

Though it’s unlikely they decrypted these password files directly, the level of access would have allowed them to severely disrupt internal systems. Experts say this level of infiltration can cripple multiple areas of a business, making recovery extremely challenging without a full rebuild of core IT infrastructure. One reason for the prolonged disruption may be that both M&S and Co-op chose not to pay the ransom, in line with UK government advice. While this decision aligns with best practices to avoid funding cybercrime, it also means recovery will take significantly longer. 

Despite the chaos, M&S has emphasized that no payment information or account passwords were compromised. The company is urging customers to reset their passwords for peace of mind and has provided guidelines on staying safe online. Co-op has resumed deliveries to most of its stores but acknowledged that some shelves may still lack regular stock. Empty shelves and apology signs have appeared across affected stores, as customers share their frustrations online. 

This incident underscores the growing threat posed by sophisticated cybercriminals and the urgent need for companies to prioritize cybersecurity. From exploiting human error to using advanced ransomware tools, the tactics are evolving, and so must the defenses.

M&S Hackers Conned IT Help Desk Workers Into Accessing Firm Systems

 

Hackers who attacked Marks & Spencer and the Co-op duped IT professionals into giving them access to their companies' networks, according to a report.

The "social engineering" attack on the Co-op allowed fraudsters to reset an employee's password before infiltrating the network, and a similar method was employed against M&S, insiders told BleepingComputer. 

Hundreds of agency workers at Marks & Spencer were advised not to come to work as the retailer grappled with the aftermath of a hack that cost the business £650 million in a matter of days. 

The disruption started in April when click-and-collect orders and contactless payments were impacted. Stuart Machin, the CEO of M&S, confirmed the issue in a message to customers, stating that the retailer would be making "minor, temporary changes" to in-store operations while it dealt with the ongoing "cyber incident.” 

In order to counter the "social engineering" tactic employed by the hackers from the Scattered Spider network against the UK supermarkets, the National Cyber Security Centre (NCSC) has released new guidelines. 

“Criminal activity online — including, but not limited to, ransomware and data extortion — is rampant. Attacks like this are becoming more and more common. And all organisations, of all sizes, need to be prepared,” noted Jonathon Ellison, NCSC’s national resilience director, and Ollie Whitehouse, its chief technology officer, in a blog post. 

They have recommended firms to "review help desk password reset processes" and pay special attention to "admin" accounts, which typically have more access to a company's network. 

The Scattered Spider network is a group of young guys from the UK and the United States who gained popularity in September 2023 when they broke into and locked up the networks of casino companies Caesars Entertainment and MGM Resorts International, demanding large ransoms. 

Caesars paid approximately $15 million to rebuild its network. It specialises in "breaking down the front door" of networks before passing control to a "ransomware" group, which cripples the network and extorts its owner, according to the Times. 

Tyler Buchanan, a Scottish man accused of being a key member of the organisation, was extradited to the United States from Spain last month after being charged with attempting to hack into hundreds of companies, Bloomberg News reported, citing a US Justice Department official.

At the time of the assault, M&S stated that it is "working extremely hard to restart online and app shopping" and apologies for the inconvenience to customers. It has already been unable to process click and collect orders in stores due to the "cyber incident".