Britain’s Co-op Group reported a £80 million ($108 million) loss in operating profit for the first half of 2025 due to a cyberattack in April. The breach led to a £206 million revenue shortfall over six months and an underlying pre-tax loss of £75 million, compared to a £3 million profit in the same period last year. The company responded by shutting down several systems to contain the threat, causing further operational challenges. Despite these setbacks, the Co-op anticipates a reduced financial impact from the cyberattack in the second half of the year.
The attack, which followed a similar incident at Marks & Spencer, involved hackers impersonating employees to deceive IT help desk staff into resetting passwords, granting unauthorized access to internal networks. This method of social engineering underscores the need for enhanced security protocols in handling IT support requests.
In response to the breach, the Co-op has been working to restore its systems and improve security measures to prevent future incidents. The company is also offering a 25% discount to members as a gesture of goodwill following the disruption caused by the cyberattack.
This incident highlights the growing threat of cyberattacks on major retailers and the significant financial and operational impacts they can have. It serves as a reminder for businesses to prioritize cybersecurity and implement robust measures to protect against such threats.
