Marks & Spencer is facing prolonged disruption after falling victim to a large-scale cyberattack. Experts warn that restoring normal operations could take months, highlighting a growing trend of sophisticated breaches targeting major retailers. This incident follows a wave of cyber intrusions, including those at Co-op and Harrods, allegedly orchestrated by the same hacking collective — Scattered Spider.
Described by ITPro as “the name on every security practitioner's mind right now,” Scattered Spider has gained notoriety for its aggressive tactics and global reach.
“Scattered Spider is one of the most dangerous and active hacking groups we are monitoring,” said Graeme Stewart of Check Point to Sky News.
Believed to be composed mainly of young, English-speaking individuals based in the UK and US, the group has reportedly executed over 100 cyberattacks since emerging in 2022. These attacks span sectors like telecommunications, finance, retail, and gaming.
One of their most prominent exploits occurred in 2023, when they severely disrupted two leading casino operators. Caesars Entertainment reportedly paid about $15 million to recover access, while MGM Resorts suffered estimated damages of around $100 million due to compromised customer data.
What makes Scattered Spider particularly elusive is its decentralized structure and independence from state backing. “They operate more like an organised criminal network, decentralised and adaptive,” Stewart added. Even after multiple arrests in the US and Europe, the group continues to rebound swiftly. “This is not a loose group of opportunistic hackers,” he emphasized.
Rather than relying solely on software flaws, Scattered Spider frequently exploits human error. The M&S and Co-op attacks, for example, were the result of “social engineering,” where attackers manipulated employees into revealing credentials.
Their tactics include mimicking corporate emails, sim swapping (cloning a phone number to hijack accounts), and building convincing fake login portals. “This is akin to ‘breaking down the front door’ of networks,” Paul Cashmore, CEO of Solace Cyber, told The Times. Once inside, Scattered Spider typically partners with ransomware gangs to carry out the final blow.
In these recent cases, the group appears to have collaborated with DragonForce, a ransomware cartel. Initially known as a pro-Palestinian hacktivist group based in Malaysia, DragonForce now operates a “ransomware-as-a-service” model. According to Bleeping Computer, they allow affiliates to use their tools and infrastructure in exchange for 20-30% of ransom payments.
The core motivation is financial gain. DragonForce reportedly reached out to the BBC claiming the Co-op breach was more severe than disclosed, hinting at an extortion attempt.
Organizations like the Co-op, which house personal data of millions, are prime targets. Once a system is locked, hackers demand large ransoms in return for decryption tools and promises to delete stolen data. “If a ransom is not paid, the ransomware operation typically publishes the stolen data on their dark web data leak site,” Bleeping Computer explained.
Whether or not to pay remains a complex dilemma. “Paying may provide a quick way to restore operations, protect customer data and limit immediate financial and reputational damage,” noted The Times. However, it also risks emboldening cybercriminals and marking companies as future targets.