A series of recent cyberattacks and data breaches targeting major retailers are beginning to impact consumers significantly. United Natural Foods, a wholesale distributor for Whole Foods and other grocery chains, has reported that its systems were breached, disrupting order fulfillment and leaving many stores short on essential items.
In the U.K., consumers were unable to place orders via the Marks & Spencer website for over six weeks as hackers gained access to the retailer’s infrastructure. Similarly, a cyberattack on the Co-op grocery chain resulted in empty shelves across various locations. This growing trend of cyberattacks across industries poses unique challenges for businesses that directly interact with consumers. Beyond the immediate effects on sales, breaches could expose sensitive customer information, increasing the risk of phishing and fraud.
Experts emphasize that cyberattacks have surged overall. Despite heightened efforts to bolster cybersecurity protocols, incidents continue to escalate. Cliff Steinhauer, a director at the National Cybersecurity Alliance, noted an increase in retail organizations falling victim to such attacks. “Cybercriminals are advancing more rapidly than we are in fortifying our systems,” he stated.
Ransomware attacks, where hackers demand significant payments to restore compromised systems, are increasingly prevalent within the retail sector. Data from NCC Group, a global cybersecurity firm, indicates that industrial businesses were the most targeted for ransomware schemes in recent months, with the consumer discretionary sector close behind. Cybercriminals recognize the chaos that ensues when they target well-known brands, creating pressure on retailers to respond quickly, particularly if ransom demands complicate recovery efforts.
Ade Clewlow, a senior adviser at NCC Group, highlighted the severe disruptions in the food supply chain following attacks on retailers like M&S and Co-op. Supermarkets in remote areas of the U.K. experienced product shortages, with consumers struggling to access basic goods.
In addition to operational disruptions, breaches can compromise customer data, ranging from names and email addresses to more sensitive information such as credit card numbers. Experts advise consumers to remain vigilant, noting that fraud attempts might surface soon after a breach occurs. Clewlow advises that individuals who have shared personal information with impacted retailers must be on high alert now and in the future, as attackers may attempt fraud using stolen data.
Cybercriminals may employ tactics such as impersonating legitimate retailers through deceptive emails, urging users to change passwords or click on malicious links. Users are encouraged to verify such communications by visiting official websites or contacting customer service. It’s also prudent to avoid reusing passwords across multiple platforms, as a breach in one system can lead to access to others through tactics like credential stuffing. Experts advocate for implementing multifactor authentication and credit freezes as additional security measures.
The ongoing rise in cyber threats is exemplified by recent incidents affecting several notable retailers. United Natural Foods took its systems offline after discovering unauthorized activity on June 5, which has disrupted its ability to fulfill customer orders. Currently, Whole Foods is working to replenish stock as the two companies continue their partnership.
Victoria’s Secret also faced significant setbacks due to a security breach detected last month, forcing the lingerie retailer to suspend its U.S. online shopping site for nearly four days. The intrusion extended to its corporate systems, prompting delays in financial reporting.
Several U.K. brands, including M&S, Harrods, and Co-op, continue to address the fallout from cyberattacks, with M&S estimating costs related to a recent attack at approximately £300 million (around $400 million) while working to restore online services.
While the connections between these incidents remain unclear, experts indicate that attackers might target commonly used software systems, revealing multiple groups may be behind these operations. Companies frequently adjust their language regarding cyber incidents depending on the level of clarity they possess about the threat involved. Nonetheless, Steinhauer highlights a notable likelihood for ransomware engagement in today’s cybersecurity landscape, where indicators such as operational halts or delayed financial disclosures often signal potential attacks.
It is vital for organizations to enhance their “cyber hygiene,” framing cybersecurity as a key business risk. Clewlow emphasizes the importance of viewing cyber threats through a business lens to adequately protect against these evolving challenges.
