The Co-op, a prominent high street retailer, continues to face a significant volume of cyber attacks on a weekly basis, with the potential for a £120 million profit loss due to a previous hack. Despite successfully mitigating a major attack in April, the aftermath led to a sales decline of over £200 million in the six months up to July, with lasting repercussions expected into the following year, possibly totaling £300 million.
The company has already seen an £80 million dent in profits, with projections indicating a potential £120 million impact for the entire year due to ongoing system recovery efforts. Acknowledging its vulnerability, the Co-op, owned by millions of members, admitted being underinsured and unlikely to recoup all losses incurred.
Highlighting the persistent threat landscape, Co-op’s Chief Digital and Information Officer, Rob Elsey, emphasized the continuous battle against cyber threats. Elsey mentioned the organization’s proactive stance in countering attacks, underscoring the need for robust cyber defenses given the evolving tactics of hackers.
The cyber breach, characterized by a sophisticated and orchestrated nature, involved attempts to infiltrate the Co-op’s systems through social engineering tactics. Although the attackers managed to breach an employee account, swift detection and response protocols limited the impact. Subsequent efforts by the hackers to reintroduce malware were thwarted, preventing potential ransomware installation.
Co-op’s CEO, Shirine Khoury-Haq, attributed the rise in cyber threats to youth disenfranchisement, emphasizing the importance of community engagement to address underlying causes. Despite the challenges posed by the attack and increased operational costs, the company remains resilient, focusing on improving cybersecurity measures, particularly in its food business segment.
The aftermath of the cyber incident, compounded by rising employee expenses, resulted in a significant financial setback for the Co-op, transitioning from a £3 million profit to a £75 million loss in the initial months of July.