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Showing posts with label Retail Cyber Resilience. Show all posts

Ransomware Profits Shrink Forcing Criminal Gangs to Innovate

 


Ransomware networks are increasingly using unconventional recruitment channels to recruit new operators. Using blatant job-style announcements online, these networks are enlisting young, inexperienced operators with all sorts of job experience in order to increase their payouts. 

There is a Telegram post from a channel that is connected to an underground collective that emphasizes the importance of female applicants, dismissing nationality barriers and explicitly welcoming people who have no previous experience in recruitment, with the promise to train recruits “from scratch” while emphasizing the expectation that they will learn rapidly.

In return, the position was advertised as being available during weekdays between 12 p.m. and 6 p.m. Eastern Time and being compensated $300 per successful call, which is paid out exclusively in cryptocurrency. It was far from a legitimate job offer, but it served as a gateway into a thriving criminal ecosystem known as The Community or The Com, a loosely connected group of about 1,000 individuals, many of whom are children in middle and high school. 

In order to operate, the network relies on fluid, short-lived alliances, constantly reshaping its structure in what cybersecurity researcher Allison Nixon calls an "infernal soup" of overlapping partnerships, which recur continuously. 

In the years since 2022, the collective and its evolving offshoots have carried out sustained intrusion campaigns against large corporations across the United States and the United Kingdom that have been referred to by previously referred to as Scattered Spider, ShinyHunters, Lapsus$, SLSH, and many others, among others. 

It is estimated that these sort of attacks, which include data breaches, credential theft, account takeovers, spear phishing, and digital extortion, may have compromised companies with a market value of more than $1 trillion. It is estimated that these sort of attacks, which include data breaches, credential theft, account takeovers, spear phishing, and digital extortion, may have compromised companies with a market value of more than $1 trillion. 

In the coming weeks, Silent Push will unveil a new research report based on cyber intelligence research conducted by Silent Push, Silent Push's partner firm Silent Push's affiliate Silent Push. Legal documents indicate that at least 120 organizations, as well as 120 brands, have been targeted, ranging from the worldwide giant Chick-fil-A, to the global giants of Instacart, Louis Vuitton, Morningstar, News Corporation, Nike, Tinder, T-Mobile, T-Mobile, Vodafone, and T-Mobile, Vodafone among others. 

This indicates that modern ransomware crime rings have undergone a major shift in both their operational strategy as well as the talent pool they utilize. In a world where profit margins are tightening, ransomware operations are changing, forcing threat actors to choose their victims with greater deliberateness and design attack models that are increasingly engineered. 

According to Coveware, the analysis division within Veeam, ransomware campaigns are no longer driven by broad, opportunistic targeting, but rather by pressure to extract leverage through precision and psychological manipulation in order to gain a competitive edge. There was a stark shift in corporate behavior during the third quarter that signaled a dramatic change in behavior in the ransomware industry. 

The proportion of victims paying ransoms fell below 25 percent for the first time ever in the history of ransomware tracking. However, when payments were made, they reflected a contraction that was unprecedented — an average of $376,941 with a median payout of $140,000. This represents a two-thirds decline from the previous quarter. 

There has been a decline in trust among major enterprises as a result of the downturn, particularly around the claim that stolen data would be permanently deleted after payment. This skepticism has had a material negative impact on exfiltration-only extortion, which has been reduced by 19 percent in ransom compliance. 

According to industry researchers, the financial strain has fractured the ransomware economy, resulting in 81 unique data-leak sites being recorded in Q3, the highest number to date, as emerging groups fill the void left by larger syndicates exiting the arena, following suit with their own ransomware campaigns. 

In spite of this dispersion, targeted groups have developed an erratic targeting behavior, drawing markets that were previously considered peripheral, including Southeast Asia, such as Thailand, and Thailand in particular. Especially recently, attackers have targeted midsize organizations that are lacking the financial resilience to weather sustained disruption – such as Russian-speaking crews like Akira and Qilin – even if they cannot meet multimillion-dollar demands that are being demanded. 

It is not only about victim realignment; operators are also exploring a broad range of revenue-enhancement strategies, including insider recruitment and bribery, social engineering on the helpdesk, supply chain compromise, and callback phishing, a tactic first developed in 2021 by the Ryuk group to destabilize defenses by causing victims to contact attackers directly, which in turn would disrupt defenses. 

Cisco Talos research highlights the importance of live negotiation in security, noting that attackers have been using real-time phone interaction to weaponize emotional pressure and adaptive social engineering to increase the effectiveness of attacks. Despite the fact that raw economic incentives have failed to deliver historical returns, modern ransomware groups have evolved a new way of leveraging influence, as evidenced by recent research. 

It has become apparent over the past few months that cybercriminal groups are increasingly embracing high-profile consumer brands in their strategic entanglements, as well as a marked shift in how these brands are defending themselves against such attacks. 

During the late spring and early summer of 2018, cybercrime collective Scattered Spider, a decentralized cybercrime collective that is known for targeting retail and supply chain organizations, targeted major retail and supply chain organizations including Victoria's Secret, United Natural Foods, and Belk, among others.

As the incidents unfolded, and the industry as a whole mobilized to defend itself against the attacks, the Retail and Hospitality Information Sharing and Analysis Center (RH-ISAC) was established, an intelligence-sharing organization that coordinates the collective cybersecurity defense by retail enterprises. 

The RH-ISAC played an important role in the escalating digital threats and the tightening budgets for security in the retail and hospitality industries, industry intelligence releases indicate that there is also a parallel increase in executive alignment and organizational preparedness across the two industry sectors. There has been an increase in the number of chief information security officers reporting directly to senior business leaders as reflected in a recent study conducted by RH-ISAC. 

In a way, this represents a 12-point increase from the previous year, signaling that cybersecurity has become more integrated into corporate strategy rather than being separated from IT. It has been noted by sector leaders that, as a result of this structural shift, security chiefs have become an increasingly important part of commercial decision-making, with their influence extending beyond breach prevention to risk governance, vendor evaluation, and business continuity planning. 

There is no doubt that the same report showed that operational resilience has emerged as a major priority in the boardroom, ranking at the top for approximately half of the organizations surveyed. 

During the conference, the leadership of RH-ISAC highlighted the industry's need to focus on recovery readiness, incident response coordination, and cross-company intelligence exchange, all of which are now considered essential to maintaining customer trust and continuous supply chains in an environment where reputational damage can often outweigh technical damage. 

Although some retail and hospitality enterprises are still faced with the challenge of tight security functions and the apparent friction between deploying them rapidly as well as ensuring that the security remains airtight, many enterprises have been able to demonstrate an improved capacity for absorbing and responding to sustained adversarial pressure. 

Analysts observe that recent high-profile compromises have not derail the industry but have instead tested its defenses and, in several cases, validated them. In this regard, the growing emphasis on cyber resilience is emerging from an aspiration to a reality as a result of orchestrating coordinated response strategies, sharing threat intelligence, mitigation frameworks, and incident guidelines to help organizations prevent becoming successive targets for cyber crimes. 

During the course of the center's response, European retail partners were able to share their insights quickly with the center, since they were facing Scattered Spider operations only weeks earlier. As early as April, the same group had breached a number of U.K. retail organizations including Harrods, Marks & Spencer, and the Co-op, which resulted in emergency advisories from British law enforcement and national cyber agencies advising the public. 

A cross-border intelligence dialogue was held by RH-ISAC in light of those developments to gain an in-depth understanding of the group's evolving tactics. Shortly after the U.K. attacks, the organization held a members-only threat briefing with researchers from Mandiant, Google's cyber intelligence division, to review operational patterns, attacker behavior, and defensive weaknesses. 

RH-ISAC's intelligence coordination with British retailers has enabled them to refine the attribution signals and enhance their early-warning models before the group escalated operations in North America and it was no surprise that they achieved this. 

During this series of breaches, it was revealed that the collective was heavily dependent on young, loosely affiliated operators, but that the retail industry was also making a marked departure from historically isolated incident management models, and instead was increasingly committed to collaborative defenses, intelligence reciprocity, and coordinated response planning. 

There has been a significant evolution in ransomware in recent years, marking the beginnings of a new era of cyber defenses for consumer-facing industries in which economics, psychology, and collaboration are coming together as critical forces. 

In the age of fragmented threat groups, a growing number of recruits, and more manipulative attack models, resilience cannot be solely based on perimeter security. There are experts in the field who emphasize the importance of pairing rapid threat detection with institutional memory, so that organizations can preserve information from every incident, regardless of how quickly attacker infrastructure or affiliations erode. 

A growing number of organizations are implementing protocols for verifying helpdesks, monitoring insider threats, performing supply chain risk audits, and sharing cross-border intelligence. This is an era in which human weaknesses are exploited as aggressively as software flaws, and these protocols are emerging as non-negotiable defenses. 

Meanwhile, the shift towards executive security ownership in retail and hospitality is a blueprint for other sectors as well, since cybersecurity influence needs to be integrated with business strategy rather than being buried beneath it. 

There are a number of recommendations for organizations to implement continuous employee awareness conditioning, stricter playbooks for recovering access, simulated social engineering drills, and incident response alliances that are as fast as an attacker can move. 

Essentially, resilience is not being able to compromise. It does not imply that you do not compromise, but that you are able to recover more rapidly, coordinate more effectively, and think quicker than the opposition.

Retail Security Failures Driven by Service Desk Abuse


 

Retail is currently at a crossroads where digital transformation has redefined the very fabric of commerce. The industry has become increasingly dependent on digital technology, which has redefined commerce as we know it. As retail once revolved around physical stores where customers could buy, return, or exchange goods in person, it has evolved into a multichannel ecosystem based on online platforms, mobile applications, and in-store technology that has created a multichannel ecosystem. 

A recent study by the International Monetary Fund reveals that nearly three out of every four customers now engage with multiple touchpoints when making purchases or returning items due to the COVID-19 pandemic. As a result, the pace of consumer trends has greatly shortened; what once endured for years, or even seasons, now disappears within weeks thanks to the influence of social media and global connectivity. 

Retailers have embraced artificial intelligence for forecasting demand and managing inventory as a means of keeping up with the pace of the industry, but there is still a critical gap regarding how AI is applied internally. Even though predictive analytics and supply chain optimisation have become widely applied, companies often fail to utilise technology to strengthen their information systems, protect them against cyber attacks, and support frontline employees. 

Increasingly, cybercriminals are exploiting service desks and email systems as vulnerable gateways to their nefarious activities, so it is not only about operational efficiency that is at stake, but also about safeguarding customer trust and brand reputation in an environment where even the tiniest lapse can have a significant impact on the bottom line. 

Retailers are experiencing an increase in the number and sophistication of cyberattacks targeting their businesses. 

A number of threats are affecting their in-store and online systems equally, including supply chain compromises, large-scale data breaches, and phishing schemes. There are often severe consequences involved—business operations often fall apart, stock prices drop, and companies are forced to face a lot of regulatory scrutiny and fines. 

In the wake of this, many retailers have been left unprepared and have shut down critical systems in order to contain the breach, while others have quietly underreported incidents in an attempt to erode consumer trust by doing so. The majority of retailers admit, according to recent industry findings, that they are more vulnerable than ever to cyber risk today. 

When a wave of coordinated attacks hit prominent UK retailers, including Marks & Spencer, Co-op and Harrods in May 2025, it brought to light this vulnerability, which was followed by similar attacks on major U.S. chains. 

Even though investigators have not established any conclusive links between the events, it is possible that a notorious hacking group known as Scattered Spider, also referred to as UNC3944 or Octo Tempest, was at the centre of the attack. 

Initially dismissed as a small SIM swapping outfit, Scattered Spider has risen to become a global threat by using sophisticated social engineering tactics to infiltrate networks and disrupt operations. This is an unsettling possibility, since the group has been suspected of having been involved in these incidents. This could be indicative of a broader, orchestrated campaign that could reshape the threat landscape for retailers in a very dangerous way. 

In recent weeks, Marks & Spencer has suffered a cyberattack that has highlighted the impact cyberattacks can have on established retailers. M&S, with over 64,000 employees and over 1,000 stores nationwide, is regarded as one of the most important cornerstones of the British high street. According to reports, the company's IT network had been compromised months before the incident became public. 

It is believed that the attackers, who were suspected of belonging to the Scattered Spider group, gained entry to the company by impersonating a staff member and manipulating the help desk of the company to reset passwords and disable multi-factor authentication. 

With this deception, the attackers had access to deeper systems and were able to access sensitive infrastructure, and they were able to extract critical files from Active Directory containing password hashes and access sensitive infrastructure. It was a result of the attack that ransomware was deployed across the network, encrypting vital information systems and stopping all business operations. 

There was a huge impact on the company immediately and for a long time to come: online sales were suspended for five consecutive days, costing M&S an estimated £3.8 million in daily revenue, as well as a decline in the company's value by more than £500 million. In recent years, point-of-sale (POS) security has become an increasingly difficult task for retailers, requiring safeguards that go far beyond traditional business security measures. 

According to experts, it is now essential to implement measures such as application whitelisting, which prevents unauthorised software from running on registers, and network segmentation, which separates payment systems from other business networks. Having EMV chip technology in place and tokenisation helps reduce the risk that card information will be stolen during transactions, but technology alone is insufficient without taking into account the human element as well. 

It is important for retailers to provide concise training sessions – no more than 15 minutes – that emphasise the importance of phishing awareness, proper login procedures, and logging out before leaving registers during high staff turnover. There is also a critical point to be considered with regard to access management: temporary staff accounts should be restricted in time, automatically expiring once the temporary contract ends, so that former employees can no longer re-enter the system. 

Monitoring plays an equally important role as well. As a precaution, retailers should monitor unusual data transfers from their payment terminals, unexpected restarts during business hours, and irregular transaction patterns that could indicate that the terminals may have been compromised. 

A segmented network not only contains threats but also creates a natural way to spot suspicious lateral movements between systems that are not normal. As AI-driven detection tools become more and more popular, they can be used to distinguish between normal fluctuations—such as seasonal spikes during the holiday season—and malicious anomalies. 

In addition, it is important to integrate these layers of defence while not eroding customer satisfaction. A visible sign of security reassures customers, and by incorporating these practices into every aspect of retail operations, retailers can enhance both the trust of their customers and their brands. Several retail security experts warn that a company can no longer limit its defences only to the systems within the organisation. 

In today's interconnected economies, retailers rely on suppliers, cloud platforms, and technology partners in order to operate. Any of these can serve as weak links for attackers to exploit. The interconnected nature of these risks underlines a growing consensus amongst organisations and authorities: cybersecurity is no longer the sole concern of an organisation or government, but the responsibility of all stakeholders, including international partners, governments, and industries. 

Several analysts believe that superior cyber resilience may become a key competitive advantage for nations and regions over the next decade or more, but to reach that vision, immediate investments, cross-border cooperation, and a commitment to building stronger digital infrastructure need to be made. Retailers must recognise that in order to stay competitive, they must abandon the outdated "fortress" mindset of keeping intruders out, and instead adopt the "assume breach" philosophy of detecting, containing, and recovering a breach as soon as possible. 

In order to minimise downtime and protect critical assets, data backups, real-time monitoring, and continuous resilience planning are now seen as essential safeguards. During the same time, the adoption of zero trust architectures, multifactor authentication, microsegmentation, and coordinated security practices across supply chains offers retailers the opportunity to build a stronger foundation for defending themselves from phishing attacks, data loss, and unauthorised access, all while strengthening the overall security of their supply chains. 

Retailers should act now, as soon as possible, before inaction becomes a costly mistake. Retailers must respond to the challenges posed by this shifting threat landscape by embracing proactive measures rather than just defensive technology and crisis containment. Instead, reimagining security as a business enabler that builds trust must become part of their strategic priorities. 

As part of an organisation's security strategy, organisations should invest in cultivating a culture of cyber awareness at all levels, from front-line seasonal employees to senior management, to ensure that security becomes second nature rather than an afterthought by making it part of everyday life. 

To strengthen resilience, it is important to partner with cybersecurity firms, coalitions of industry organisations, and government initiatives that provide intelligence sharing and early warning systems that no single entity can accomplish alone, and that retailers can leverage to reduce their exposure to catastrophic breaches by integrating cybersecurity into their customer experience, thereby allowing them to differentiate themselves in a rapidly competitive market. 

A company that demonstrates a commitment to protecting data and ensuring business continuity enhances customer trust, strengthens the reputation of the company, and unlocks long-term loyalty by demonstrating that commitment in a visible way. In a world where attackers take advantage of trust as the most powerful weapon of their arsenal, retailers who are able to turn security from a silent shield into a defining part of their business plan will be the ones who succeed.