Cyber attack at Easter leads to projected £100m loss for Marks & Spencer, affecting sales.
Cyberattack Strikes Marks & Spencer: A Potential £100 Million Loss
Oops! Here's the scoop on Marks & Spencer's cybersecurity woes!
It's all doom and gloom for M&S as they brace themselves for a hefty financial hit, potentially losing an astounding £100 million due to a devastating cyber attack over Easter!
The retail giant, who've confessed to hackers stealing the personal data of at least 18 million customers, has taken a severe hit in sales as they temporarily suspended online shopping nearly three weeks ago.
Labour MP Liam Byrne, chairman of the business select committee in Parliament, expressed concerns over the attacks on M&S and other retailers like Co-op and Harrods.
Talking 'bout The Co-op, they're gradually bringing their systems back online, though customers will still find empty shelves due to the chaos their stock system found itself in two weeks ago. Good news, though – they're aiming for improved stock availability at over 2,500 shops this weekend. Credit cards are back in action after some shops were unable to take payments.
Now, what about these thieves, you ask? The shadowy gang behind this mess, DragonForce, has claimed responsibility for the attacks on M&S and Harrods too.
Speaking of M&S, they've yet to announce exactly when online shopping will return, nor have they revealed the details of an event for food influencers they had to cancel.
Experts say the attack's massive scale could put a 'large chunk' of the British population on high alert, aware that their data might've fallen into the wrong hands. But M&S's insurance policy should cover losses of up to £100 million, with insurer Allianz covering at least £10 million, and cyber specialist Beazley also involved.
M&S CEO Stuart Machin admitted some customer data had been swiped but assured there were no stolen payment details or account passwords. He reassured customers that there was no indication hackers had shared the data and that no action was required. However, M&S encouraged customers to be watchful for any suspicious activity, such as phony emails, calls, or texts supposedly from M&S.
Machin added that everyone at M&S was working hard to restore services for customers.
Funny thing, M&S only revealed the data breach after confirming the cyberattack had occurred just after Easter. Analysts speculate that the retailer lost more than £70 million in online business due to the cyberattack.
What do you think about this situation? Scary stuff, huh? Let us know in the comments below!
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M&S chose to remain tight-lipped about the return of online shopping.
Analyst Dan Coatsworth of AJ Bell criticized the delay in informing customers about the data breach, stating it was concerning that M&S took so long to disclose the problem.
Investors should be cautious about potential fallout from this cyberattack on Marks & Spencer, as the loss of £100 million could impact their financial standing. In the wake of this incident, the company's business could be affected by customer mistrust, leading to a decrease in sales, which could extend to the technology sector, especially online retail.
