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Cyber Resilience in Retail: Lessons from the M&S Cyber Incident

Written by Adam Casey | 29 April 2025 13:27:19 Z

In recent days, M&S has found itself navigating a major cybersecurity incident, one that has disrupted its digital operations and forced tough decisions. While the company has not confirmed full details, several credible sources suggest that a ransomware group known as Scattered Spider may be responsible. The incident appears to have involved the compromise of sensitive Active Directory data and the deployment of ransomware targeting virtualised infrastructure.

For a household brand like M&S that generate over £13 billion in revenue, with nearly half of that coming from online sales, any sustained outage is significant. Here, we explore what’s known so far, what this means for retail cybersecurity, and the lessons organisations can draw from such an event.

What Happened And Why?

Although the technical specifics remain unconfirmed, it’s widely believed that M&S suffered a targeted ransomware attack. These attacks often involve gaining prolonged access to internal systems, exfiltrating data over time, and then launching widespread encryption across environments such as VMware ESXi, with the goal of extorting payment for decryption and data non-disclosure.

Such incidents are typically financially motivated, especially when criminal groups focus on high-revenue organisations. For attackers, the logic of an attack like this is clear, the more critical the services, the higher the likelihood of payment.

Retailers, especially those dealing with significant digital operations and sensitive customer data, make attractive targets. Beyond the ransom itself, the financial implications extend to lost sales, customer trust, regulatory penalties, and potential litigation.

 

Why the Disruption Lasts Days (or Longer)

From the outside it may seem surprising that an organisation of this scale would face multi-day service interruptions, including halting online orders and locking out remote workers. But there are several factors at play:

  • Complex systems: Retail operations often involve a tightly woven fabric of services. Once compromised, restoring systems safely and in order is complex.

  • Caution over speed: Rushing restoration can risk reintroducing malware or leaving open backdoors. A methodical, step-by-step recovery is often the safer path.

  • Digital forensics: Identifying how the attackers gained entry, what they accessed, and whether they’re still present requires deep investigation.

  • Supplier dependency: Coordinating across multiple service providers adds further delay and complexity to recovery timelines.

While prolonged disruption isn't inevitable, it's a real risk without mature incident response and resilience practices. For large businesses, recovery timelines are often measured in weeks or even months depending on the damage.

 

Why Shutdowns Are Essential

Many wonder why affected systems must be fully shut down. But this is a critical containment measure. It prevents the attacker from spreading further, encrypting more data, or escalating their privileges. Taking systems offline also allows security teams to safely investigate and cleanse the environment without interference.

That said, such action should be complemented by strong Business Continuity and Disaster Recovery (BC/DR) plans, enabling key services to continue via backups or alternative platforms. A sustained outage may suggest that either backup systems were compromised, difficult to activate, or not aligned to current operational needs.

 

Could M&S Have Prevented This?

While it’s impossible to know the full story from the outside, there are areas where organisations can strengthen their cyber posture to reduce the risk or impact of similar incidents:

  • Modern threat detection and response tools (such as EDR, SIEM with behavioral analytics, and Managed Detection and Response) are essential.

  • Patch management to close known vulnerabilities and network segmentation to limit lateral movement help contain threats early.

  • Multi-factor authentication and Zero Trust architecture reduce the likelihood of credential-based compromise.

  • Security awareness training helps employees recognise phishing and social engineering attempts which are frequent entry points for attackers.

  • Framework alignment (like NIST, CIS, ISO27001, or Secure by Design) ensures the organisation is meeting baseline cybersecurity best practices.

 

Resilience is the Real Differentiator

Having backups is not enough. Organisations need resilient, air-gapped backups that are regularly tested and quickly deployable. Incident Response Plans (IRPs) must be well-documented, widely understood, and rehearsed, with clear roles, escalation paths, and communication protocols.

Investing in partnerships with external cybersecurity experts or Managed Security Service Providers (MSSPs) ensures 24/7 coverage, access to specialist skills, and scalable threat detection capabilities.

 

Why the Threat Landscape Keeps Growing

The timing of this incident is part of a broader trend. Today’s threat actors are increasingly using AI tools to craft more convincing phishing attacks, automate vulnerability discovery, and launch highly targeted operations. At the same time, organisations are expanding their digital footprints . More cloud, more remote work, more interconnected systems, all of which increase the attack surface.

Cybercriminals are evolving faster than many businesses can respond, and that makes resilience, not just prevention, the new gold standard.

 

What Should M&S Do Next?

To recover stronger, M&S (and organisations in similar positions) should:

  • Conduct a full post-incident review to uncover the root cause and any gaps in detection or response.
  • Use those insights to update policies, controls, and processes, including employee training and incident response playbooks.

  • Continue improving cyber resilience, especially around backups, failover systems, and system isolation.

  • Communicate transparently with stakeholders to maintain trust and provide clarity on next steps.

  • Consider cyber insurance, which while not a defense strategy, can support financial recovery after a serious breach.

 

Final Thoughts

Cyber threats aren’t going away, but how an organisation prepares for and responds to them can make all the difference. While the M&S situation continues to unfold, it serves as a clear reminder; cyber resilience, executive alignment, and proactive planning are no longer optional. They are essential.