Cyber Attacks Hit Big UK Names: A Wake-Up Call for All Businesses

In recent weeks, some of the UK’s most trusted brands, including Marks & Spencer, the Co-op and Harrods, have all found themselves in the headlines for being the victim of devastating cyberattacks, casting a spotlight on the increasing prevalence of this type of crime and sounding a warning bell for all businesses.  

What has happened?

Marks & Spencer (M&S) was hit by a major ransomware attack believed to be carried out by a well-known cybercriminal group called Scattered Spider. The result has been that customers haven’t been able to place online orders for clothing or homeware for several weeks now, personal data was compromised and the company took a huge financial hit, resulting in estimated losses exceeding £60 million and a 16% drop in the company's share price, erasing £1.3 billion of its market value.

  The Co-op was also targeted in a separate cyberattack. This one involved a ransomware tool called DragonForce which severely compromised the company’s supply chain and payment systems and has disrupted operations, threatened personal data and left many shops with empty shelves.

  Harrods, the iconic London department store, recently confirmed it was the target of a cyberattack, making it the third major UK retailer affected by such incidents in a short span. The company reported attempts to gain unauthorised access to its systems, prompting immediate action from its IT security team. As a precaution, Harrods restricted internet access across its sites.  

Insurance implications

In the case of Marks & Spencer, the company is poised to receive up to £100 million from its cyber insurance policy. Insurers Allianz and Beazley are expected to cover the initial £10 million claim, with further compensation possible depending on the final assessment of damages and business interruption.

  The incident has broader implications for the cyber insurance market, particularly for the retail sector.

  Analysts suggest that the M&S breach, along with similar attacks on other UK retailers, may lead to increased scrutiny of cybersecurity measures and higher premiums. Insurers are likely to tighten underwriting standards, requiring more robust risk management practices from policyholders.

  This trend underscores the growing importance of comprehensive cyber insurance coverage and proactive cybersecurity strategies for businesses operating in an increasingly digital landscape.  

What does cyber insurance actually cover?

Cyber insurance is there to help businesses bounce back after a cyberattack. Depending on the policy, it can cover:

• Business interruption – if your systems go down and you can’t trade, the policy may help cover lost income.
• Ransomware/extortion payments – if you're targeted and locked out of your data, the insurer may help negotiate and cover some of the ransom costs.
• Legal and regulatory costs – if personal data is compromised, there may be investigations or legal claims. Cyber insurance helps with those expenses.
• IT and data recovery – including hiring experts to get your systems back online and investigate what went wrong.
• Customer notification – if you need to tell customers their data has been affected, the costs of managing that communication can also be covered.

 

Why it matters to every business

The message from these recent attacks is simple: if big names like M&S and the Co-op can be hit, so can anyone. These incidents are a real reminder that no business, big or small, is safe from cybercrime.

  Having a good cyber insurance policy in place won’t stop an attack, but it will give you the support you need to manage the fallout, protect your customers and keep your business running.  

If your business hasn’t looked at cyber insurance recently, now’s the time.

Speak to Ascend Broking Group today! Our expert team have the answers to all your cyber insurance questions and can tailor a cyber policy to the exact nature of your business. Call us on 01245 449060 or email matthew.collins@ascendbroking.co.uk. Don’t let cybercrime threaten or destroy your business!