In April 2025, Marks & Spencer (M&S) became the latest high-profile victim in a growing wave of sophisticated cyberattacks targeting major UK retailers. The incident served as a stark reminder that even well-established brands are not immune to digital threats—and underscores the critical importance of proactive cybersecurity and robust cyber insurance in today’s digital-first economy.
What Happened?
M&S was targeted by a well-known ransomware group, believed to have connections in both the UK and the US. The attackers deployed ransomware that not only encrypted key systems but also exfiltrated sensitive internal data, including files from Microsoft Active Directory.
The group reportedly demanded a ransom of £10 million. While M&S has not confirmed any negotiations or payments, the fallout from the attack was substantial.
Disruption Across the Business
The cyberattack triggered widespread operational disruption:
Online Sales Paralyzed: Digital platforms, including the M&S website and mobile app, were taken offline, halting online orders for clothing and home products at a crucial time for retail.
In-Store Payment Issues: Customers experienced problems with contactless payments and Click & Collect services, leading to frustration and loss of confidence.
Warehouse Shutdowns: System failures at a distribution hub forced M&S to send home around 200 agency workers.
Financial Impact: Investor confidence plummeted, resulting in a 7% drop in share price and nearly £700 million erased from M&S’s market value.
The company now estimates the cost of the ongoing incident to be around £300 million. CEO Stuart Machin referred to it as a “bump in the road,” noting that enhanced cybersecurity measures will be implemented to prevent future breaches.
Why Cyber Insurance Is a Business Essential
Cyber insurance has become a critical component of any modern risk management strategy. Here’s why:
- Data Breach Response – Professional support if your sensitive data is exposed
- Business interruption – Compensation for lost income following a disruption in trading due to a cyber event
Help towards the costs of ransom payments and recovery - Regulatory & Legal Expenses – Help towards compliance and legal fees
- PR and reputational management
- Third Party Liability – Cover towards if a cyber event affects your customers or partners
According to a 2024 report by Ponemon Institute, 58% of ransomware victims were forced to shut down operations temporarily, and 40% suffered major revenue losses as a direct result of cyberattacks.
Protect Your Business Today
The M&S cyberattack is a cautionary tale for businesses of all sizes. Investing in strong cybersecurity infrastructure and securing a cyber insurance policy can make all the difference between swift recovery and long-term disruption.
Talk to us today about how cyber insurance can protect your business from evolving digital threats. Call us on 01234 242900 or complete our contact form and we’ll get back to you as soon as possible.