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.
