UK Government Warns Retail Attacks Must Serve as a “Wake-up Call”

The recent wave of cyber-attacks on UK retailers should serve as a “wake-up call” for businesses across the country, a senior government minister has warned.

Chancellor of the Duchy of Lancaster Pat McFadden said that the recent incidents impacting household names like Marks & Spencer (M&S), the Co-op and Harrods, demonstrated that cybersecurity is not a luxury but an absolute necessity.

During the opening plenary session at the 2025 CYBERUK event, McFadden noted that there was previously a time when a government minister making a speech about cybersecurity was something “routine” and not having much connection with the real world.

This is no longer the case, he emphasized, particularly given the events of the past few weeks.

“These cyber-attacks are not a game. Not a clever exercise. They are serious organized crime. Their purpose is to damage and extort. It’s the digital version of an old-fashioned shake down. Either straight theft or a protection racket where your business will be safe as long as you pay the gangsters,” McFadden warned.

The attacks on the three retailers have been connected to the DragonForce cybercriminal syndicate. Experts believe the individuals involved in the attacks are likely associated with the Scattered Spider ransomware gang.

The hackers contacted several media outlets, including the BBC and Bloomberg, with evidence that they had infiltrated the three UK retailers’ IT networks and stolen large amounts of customer and employee data.

The attacks have also had a significant impact on the operations of M&S and Co-op, including M&S pausing online orders as it looks to mitigate the incident.

Co-op has also confirmed that hackers had exfiltrate data from one of its systems.

Cybersecurity Offers Major Economic Opportunities

McFadden emphasized that cybersecurity offers a huge economic opportunity for the UK, saying the sector is a “prime target for economic growth” in the government’s upcoming Industrial Strategy.

He set out the significant job opportunities this offers, with over 2000 cybersecurity businesses across the UK, holding 67,000 jobs, up by 6600 in the past year.

McFadden added that he wants the UK to lead the way in providing cybersecurity services globally.

“We’re already the third largest exporter of these products and services in the world,” he noted.

New Government Report Emphasizes AI Threat

During the opening keynote, McFadden launched a new report outlining how AI will enable cyber threat actors to become more effective and efficient over the coming years.

The report warned that AI-enabled tools are set to enhance threat actors’ ability to exploit known vulnerabilities.

Today, many advanced threat actors are able to exploit vulnerabilities within days of exposure. However, AI is expected to shrink this gap even further by 2027, posing an even bigger challenge for defenders.

This is because of the cybercriminal “as-a-service” ecosystem incorporating AI into the products on offer with a focus on circumnavigating safeguards on publicly available AI models and AI-enabled commercial penetration testing tools.

In addition, the new report warned that the growing incorporation of AI models and systems across the UK’s technology base, including in critical infrastructure, present an increased attack surface and opportunities for adversaries.

As a result, the government urged organizations to adopt secure AI practices, utilizing recent government guidelines in this area, including the UK’s AI Cyber Security Code of Practice.

This code, launched earlier in 2025, is designed to form the basis of a new global standard for secure AI through the European Telecommunications Standards Institute (ETSI).

Commenting on the report’s findings, Paul Chichester, NCSC Director of Operations, said: “We know AI is transforming the cyber threat landscape, expanding attack surfaces, increasing the volume of threats, and accelerating malicious capabilities. While these risks are real, AI also presents a powerful opportunity to enhance the UK’s resilience and drive growth – making it essential for organizations to act.”

He added: “Organizations should implement strong cybersecurity practices across AI systems and their dependencies and ensure up-to-date defenses are in place.”