UK retailers face £1 million daily losses after cyberattacks

Recent cyberattacks on major UK retailers have highlighted the e-commerce sector's challenges in protecting operations and customer trust.

According to Xavier Sheikrojan, Senior Risk Intelligence Manager at Signifyd, such attacks result in significant losses and wider business impacts.

He commented, "The recent wave of cyberattacks on major UK retailers, including Marks & Spencer, Co-Op and Harrods, is a stark warning to the ecommerce industry. Reports suggest M&S is losing as much as GBP £1 million per day in sales, which is a reminder that the cost of disruption goes well beyond immediate financial loss. It can take months or even years to rebuild customer trust and operational stability."

Sheikrojan noted that retailers are vulnerable targets because of the large quantities of identity and payment data they possess. He explained, "Retailers are prime targets because of the volume of identity and payment data they hold. And as attacks become more targeted and sophisticated, ecommerce businesses need to think beyond firewalls."

Moreover, he said recovery prospects are improved for businesses that prioritise resilience through their technology approach. "The brands that recover fastest are those that have built resilience into their digital infrastructure. That includes putting in place robust fraud and abuse detection systems, not just to block threats but to keep trusted customers moving through. Being able to recognise legitimate customers in real time, stop bad actors without disrupting the experience, and maintain continuity under pressure is now essential," he stated.

Sheikrojan cautioned, however, that excessively strict fraud detection can have unintended negative effects on loyal shoppers. He said, "Overly cautious fraud systems risk rejecting loyal shoppers and damaging the customer experience, which creates a different kind of loss. This is where network-based intelligence becomes critical. By tapping into real-time signals from a global network of merchants, retailers can detect threats early, adapt quickly and protect both revenue and reputation."

He also stated that forward-thinking e-commerce businesses that prioritise resilience will be better prepared for future cyber threats. According to Sheikrojan, "Looking ahead, businesses that invest in resilience now will not only minimise the fallout from future attacks but gain a competitive advantage by delivering secure, seamless experiences when it matters most."

The recent incidents affecting retailers have drawn renewed focus on cybersecurity strategies across the UK ecommerce industry as businesses assess operational risks and potential financial consequences of cyberattacks.