Retailers Under Siege: Ransomware Attacks Surge During Holiday Season
As the holiday shopping season approaches, retailers are increasingly becoming prime targets for ransomware attacks. Cybercriminals are strategically timing their assaults to coincide with peak sales periods, aiming to maximize disruption and pressure victims into paying ransoms swiftly.
Targeted Systems and Attack Vectors
Threat actors are focusing on critical retail infrastructure, including point-of-sale (POS) networks, e-commerce platforms, and backend IT systems that manage orders, customer loyalty programs, and payment processing. The primary methods of infiltration involve phishing emails, counterfeit shipping notifications, and malicious advertisements that redirect users to exploit kits. Once a user interacts with these deceptive elements, attackers can rapidly escalate their access from an initial foothold to full domain compromise. This progression often leads to the deployment of file-encrypting ransomware and data exfiltration tools within hours of the initial breach.
Sophisticated Malware Deployment
Security analysts have identified that the malware used in these campaigns is part of a multi-stage toolkit designed for stealthy entry, credential theft, and rapid lateral movement within retail environments. The malware is engineered to blend seamlessly with legitimate helpdesk and remote support tools commonly used by store and warehouse staff, making detection challenging. The infection process typically begins with a lightweight loader delivered through malicious attachments or script downloads. This loader injects itself into trusted processes like explorer.exe or powershell.exe to evade detection. It then retrieves the main payload from attacker-controlled servers over HTTPS, using domain names that mimic common cloud and content delivery network providers.
Once the payload is established, the malware harvests credentials from the Local Security Authority Subsystem Service (LSASS) and cached browser sessions. It utilizes remote management tools and Server Message Block (SMB) shares to propagate across store servers and POS systems. To further obfuscate its activities, the malware executes key actions through obfuscated PowerShell commands, such as:
“`
powershell.exe -w hidden -enc
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This method allows the malware to move laterally across store networks, leveraging existing administrative pathways to reach payment and inventory servers before initiating the final ransomware payload.
Impact on Retail Operations
The consequences of these ransomware attacks are severe. Encrypted inventory systems, locked payment terminals, and inaccessible online order platforms can bring both in-store and digital sales to a standstill. Victims often face data theft, including customer records and internal pricing or promotional plans, increasing the risk of double extortion and potential regulatory fines.
Rising Threat Landscape
The retail sector has experienced a significant increase in ransomware attacks in recent years. According to a 2022 survey by Sophos, 77% of retail organizations were targeted by ransomware in 2021, marking a 75% increase from the previous year. This rate is 11% higher than the cross-sector average of 66%. The survey also revealed that the average ransom payment in the retail sector has risen, with 58% of victims with encrypted data opting to pay the ransom.
Notable Incidents
Several high-profile ransomware attacks have underscored the vulnerability of the retail sector:
– Marks & Spencer (M&S): In May 2025, M&S announced that a sophisticated cyberattack would reduce its operating profit by approximately £300 million ($403 million). The attack temporarily shut down M&S’s online clothing operations, disrupted food supplies, and wiped over £1 billion from its market value. Although in-store sales remained stable, the food division experienced reduced availability and higher logistics costs due to reverting to manual operations. M&S aims to mitigate half of the profit loss in the 2025/26 fiscal year through insurance and cost management.
– Muji: In October 2025, Japanese retailer Muji halted many of its operations due to a ransomware attack on its delivery partner, Askul. The incident disrupted online browsing, shopping, and order history access via the Muji app. There were concerns that customer data, including names, addresses, emails, and financial information, may have been compromised, potentially leading to identity theft. Askul confirmed its systems were down due to the ransomware infection, pausing all order acceptance and shipping activities. The company is investigating the scope of the data breach and promises to inform affected parties once details are confirmed.
– Blue Yonder: In 2024, a ransomware attack on Blue Yonder, a major supply chain technology provider, disrupted operations for several companies, including Starbucks and U.K. grocery chains Morrisons and Sainsbury’s. The attack led to system outages, forcing companies to resort to manual and contingency plans. Starbucks faced issues with managing barista schedules and tracking hours but affirmed that customer service was unaffected. While Morrisons continued to use backup systems for warehouse management, Sainsbury’s service was restored by Tuesday. Blue Yonder is working with cybersecurity firms to recover, and the extent of the impact on its customers remains undisclosed.
Emerging Threat Actors
Several ransomware groups have been particularly active in targeting the retail sector:
– Ragnar Locker: First appearing in December 2019, Ragnar Locker is a ransomware group known for using virtual machine escape techniques to encrypt victims’ system files. The group has targeted various sectors, including retail, and has been linked to significant attacks such as the one on the Portuguese electric company Energias de Portugal, where it demanded a ransom of $10.9 million and threatened to leak 10 terabytes of data.
– FIN7: Also known as Carbon Spider, FIN7 is a Russian criminal advanced persistent threat group that has primarily targeted the U.S. retail, restaurant, and hospitality sectors since mid-2015. A portion of FIN7 operates under the front company Combi Security. The group has been called one of the most successful criminal hacking organizations globally.
– Hive: Active between June 2021 and January 2023, Hive was a ransomware-as-a-service operation that primarily targeted public institutions, including those in the retail sector. In January 2023, a joint U.S.–German investigation led to the seizure of Hive’s servers, effectively dismantling the group. Before its takedown, Hive had extorted over $100 million from about 1,500 victims in more than 80 countries.
Preventive Measures and Recommendations
To mitigate the risk of ransomware attacks, retailers should adopt a multi-layered security approach:
1. Employee Training: Educate staff on recognizing phishing attempts and other social engineering tactics.
2. Regular Updates: Ensure all systems, including POS terminals and e-commerce platforms, are updated with the latest security patches.
3. Network Segmentation: Isolate critical systems to prevent lateral movement of malware within the network.
4. Backup Protocols: Implement regular, secure backups of essential data to facilitate recovery without paying ransoms.
5. Incident Response Plan: Develop and regularly update a comprehensive incident response plan to address potential ransomware attacks promptly.
By proactively implementing these measures, retailers can enhance their resilience against ransomware threats and safeguard their operations during the critical holiday shopping season.
