Marks & Spencer Faces £300m Loss from Cyber-Attack
Marks & Spencer (M&S) has disclosed an estimated £300 million loss due to a severe cyber-attack that has disrupted its operations, halting online orders and complicating inventory management. This figure was announced alongside a strong financial report indicating a 22% increase in annual pre-tax profits, reaching £876 million prior to the cyber incident.
Despite the setback, M&S highlighted its robust financial position, boasting over £400 million in net funds, and asserting that it is in the best financial health it has experienced in three decades. The company believes that the financial impact from the attack will be partially alleviated through insurance and other mitigating actions.
The attack, attributed to the hacking group Scattered Spider, significantly affected M&S’s IT systems over the Easter weekend, forcing the retailer to pause operations on its website, which markets clothing, home goods, and gifts. Additionally, deliveries of food and fashion to stores, as well as some logistics for online deliveries through its partner Ocado, have been hampered.
M&S has acknowledged that the cyber-attack compromised some personal data belonging to thousands of customers, including names, addresses, dates of birth, and order histories, raising concerns about data security.
This incident comes on the heels of similar cyber threats targeting other retailers like the Co-op and Harrods, signaling a potential trend in cybercrime targeting the retail sector. M&S is currently working to restore its systems and resume normal operations while ensuring customer security and data integrity.
Further updates on the situation are expected soon.
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