War on Retail: How Targeted Cyber Threats Are Shaping The UK Retail Landscape in 2025

The retail industry continues to face unprecedented cyber threats in 2025. As digital transformation accelerates, retailers find themselves increasingly targeted by sophisticated cybercriminal groups.

According to our recent threat intelligence, 41% of retail organisations have experienced a cybersecurity breach this year. In the UK specifically, ransomware attacks on retailers surged by an alarming 74.71% in the first quarter alone. Globally, over 70% of retail organisations have been hit by at least one data breach in the past 12 months.

The sector's vulnerability lies in its reliance on large volumes of customer data, integrated e-commerce platforms, and fast-paced, time-sensitive operations. These conditions create the perfect storm for attackers seeking financial gain, disruption opportunities, or access to broader networks via third-party services. With the stakes higher than ever, understanding who these attackers are, how they operate, and why retail remains a primary target is essential for security professionals and business leaders alike.

A Closer Look at the Threat Landscape

In 2025, several well-known cybercriminal groups have shifted their focus towards the retail sector. Ransomware syndicates such as Akira, LockBit, Clop, and BlackCat have intensified attacks on retailers, using a combination of data encryption and extortion to pressure victims into paying substantial ransoms. Scattered Spider, a financially motivated group known for its social engineering capabilities, has been particularly active in the UK.

Another prominent player, FIN7 (also known as Carbanak), has been exploiting point-of-sale (POS) systems, deploying custom malware to extract financial data directly from in-store terminals. Meanwhile, dark web marketplaces continue to thrive by selling stolen credentials and payment information, enabling follow-on fraud across retail platforms.

Case Study: Marks & Spencer Cyber Attack

One of the most notable incidents in the UK retail space this year occurred on 22 April, when Marks & Spencer (M&S) confirmed it had fallen victim to a cyber attack orchestrated by the Scattered Spider group. This breach had wide-ranging consequences for the retailer, including stock shortages across multiple stores, widespread disruption of its loyalty programme, and a sharp £650 million drop in market value in the immediate aftermath of the attack.

The attack reportedly began with a targeted social engineering campaign that led to unauthorised access to internal systems. Once inside, the attackers were able to disrupt card transaction processing and impair core business functions. M&S is currently working with Microsoft, CrowdStrike, and Fenix24 to investigate and remediate the incident. The breach not only exposed vulnerabilities in M&S’s digital infrastructure but also sent a clear message to the rest of the industry about the increasing sophistication of threat actors.

Other High-Profile Incidents in UK Retail

Marks & Spencer is not alone. Several other major UK retailers have also faced significant cyber attacks in recent months. The Co-op (UK) experienced a ransomware attack that temporarily disabled self-checkout systems and disrupted supply chain operations. Hackers reportedly gained access to the network using stolen VPN credentials. Although the company managed to restore services within 72 hours, the attack highlighted critical gaps in remote access security.

Similarly, Harrods in London fell victim to a phishing-led intrusion where attackers gained access to internal systems and attempted to exfiltrate sensitive POS data. While no customer payment information was officially confirmed leaked, several backend services were temporarily disabled during the investigation. These cases underscore the fact that no brand - no matter how prestigious or well-resourced - is immune from today’s cyber threats.

Techniques and Tactics: How Are Retailers Being Breached?

Cyber criminals are using a wide array of techniques to infiltrate retail organisations:

• Phishing: This remains the most common method of entry, accounting for 65% of breaches. These attacks often exploit human error and can provide attackers with direct access to internal networks and credentials.

• Ransomware: Continues to grow in volume, with incidents rising by nearly 75% in Q1 2025. Retailers are especially vulnerable due to the public-facing nature of their operations and their reliance on real-time transaction processing. Credential theft and account takeovers are also widespread, with 55% of breaches involving compromised employee credentials.

• Point-of-Sale Malware: POS attacks are another serious threat, particularly for retailers using outdated systems. POS attacks account for approximately 40% of breaches in the sector and often go undetected for weeks or even months. In addition, 60% of breaches now originate from vulnerabilities in third-party vendors or service providers, such as e-commerce platforms and payment processors.

Other prevalent attack methods include web application exploits like SQL injections and credential stuffing, Magecart-style attacks that inject malicious scripts into online checkout pages, business email compromise (BEC), and distributed denial-of-service (DDoS) attacks aimed at disrupting operations during high-traffic events like flash sales or holiday promotions.

Understanding the Motivation Behind the Attacks

The primary driver behind most retail cyber attacks is financial gain. Stolen payment data, loyalty programme credentials, and personally identifiable information (PII) are highly valuable on the dark web. However, attackers are also increasingly motivated by the opportunity to damage brand reputation or exert pressure through operational disruption.

Retailers are especially appealing targets due to their dependency on third-party software, often legacy systems, and their fast-paced operating environments. These factors can lead to security oversights and underinvestment in cybersecurity. Moreover, the continued growth of online retail and digital payments has expanded the attack surface significantly, providing cybercriminals with more entry points than ever before.

Ransomware Trends: More Attacks, Fewer Payouts

While the volume of ransomware incidents continues to rise (up 37% from last year) there is a notable shift in how organisations are responding.

In 2025, ransomware was identified in 44% of retail breaches, up from 32% in the previous year. However, the median ransom payment has declined to $115,000, down from $150,000 in 2024. More encouragingly, 64% of victim organisations have refused to pay the ransom, compared to 50% just two years ago.

This shift suggests that improved resilience planning, better backups, and stronger partnerships with law enforcement and incident response firms are helping retailers resist the pressure to pay. Nevertheless, the growing frequency of attacks underscores the need for continued investment in proactive defences. 

Looking Ahead: Strengthening Retail Cyber Defences

As the threat landscape evolves, the retail sector must act decisively to strengthen its cyber posture. Key priorities include investing in zero-trust architectures, regularly auditing third-party vendors in their supply chains, and improving employee awareness through cybersecurity training.

Our recent article Manufacturing Resilience - The Importance of Cyber Security In Supply Chain Management looks in detail at the ways in which manufacturing and retail based organisations can strengthen their supply chain cyber security to mitigate growing cyber risk.

Retailers should also modernise their point-of-sale infrastructure, deploy web application firewalls, and adopt endpoint detection and response (EDR) solutions. Most importantly, every retailer, large or small - must have a clear incident response plan and a tested recovery strategy.

The cyber threat to UK retail is real, growing, and increasingly complex. High-profile incidents like the attack on Marks & Spencer show just how damaging a breach can be - not only in terms of finances but also in consumer trust and operational stability. By understanding the tactics used by attackers and taking proactive steps to harden their defences, retailers can turn the tide and protect their businesses in an increasingly hostile digital environment.

Cybersecurity is no longer a back-office issue, it’s a boardroom imperative - and in 2025, the survival of retail brands may depend on how seriously that message is taken.

Follow this link to check out our full Cyber Threat Analysis of the UK Retail Sector

The Next Step: Unlock the Security & Financial Advantages of PureCyber Threat Exposure Management

Webinar: Uncover The Unseen: Redefining Cyber ROI With Threat Exposure Management

Wednesday June 4th | 11am

Join our high-impact session revealing how continuous Threat Exposure Management and brand protection are rapidly becoming a critical part of the new frontline of cyber security. Offering compelling examples of how the most prepared organisations are redefining their cyber ROI through proactive cyber security.

What you’ll learn:

+ How attackers are exploiting your digital footprint in places you aren’t watching

+ Why brand protection is no longer just a marketing problem - it’s a security priority

+ Real-world examples of the positive ROI impact proactive cyber security can have

+ The costs of inaction: data leaks, impersonation, revenue loss & reputational damage

How Can PureCyber Help?

The PureCyber team are here to take over the burden of your cyber security and ensure your organisation’s data remains secure and well managed, with proactive monitoring and real-time threat intelligence - providing you with a comprehensive and reliable cyber department to support you in all aspects of your security efforts, including: 24/7 Security Operations Centre (SOC) services, Managed Detection & Response (MDR/EDR),Threat Exposure Management (TEM) & Brand Protection Services & Penetration Testing.

PureCyber is recognised as an Assured Service Provider by the NCSC to offer governance and compliance consultancy services/audits. Contact our team of compliance experts to enquire about our full range of Governance Support - including Cyber Essentials, ISO 27001, FISMA, SOC1 and SOC2 standards.

Get in touch or book a demo for more information on our services and how we can safeguard your organisation with our expert cyber security solutions.

Email: info@purecyber.com Call: 0800 368 9397