When a grocery store chain gets hit with a ransomware attack

Summary

Marketplace Morning Report: When a Grocery Store Chain Gets Hit with a Ransomware Attack
Release Date: May 21, 2025

In this episode of the Marketplace Morning Report, host David Brancaccio delves into a series of pressing business and economic stories shaping the global landscape. The highlight of the episode centers on a significant ransomware attack targeting a major UK grocery chain, alongside other critical updates affecting various sectors worldwide.

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Major Ransomware Attack on Marks & Spencer

The episode opens with a deep dive into the alarming ransomware attack that has severely impacted Marks & Spencer (M&S), one of the UK's retail giants.

Details of the Attack: Lianna Byrne reports live from the BBC World Service, introducing the story of M&S falling victim to a sophisticated cyber assault. The attack, first detected around Easter, has escalated, leading to substantial operational disruptions across the company's extensive network.

Financial Implications: The fallout from the ransomware incident is substantial, with M&S estimating the total cost to be approximately $400 million. This figure encompasses not only the immediate response and system recovery but also the long-term losses from halted online orders and empty store shelves.

Investigation and Perpetrators: Joe Tidy, the BBC's cyber correspondent, provides an in-depth analysis of the perpetrators behind the attack. He explains, "M&S have been hit by what's called a ransomware attack, which means that hackers have broken into the company's systems, stolen a load of data from employees and customers, and then scrambled those systems to make them unusable" (01:37). The investigation is currently spearheaded by the UK's National Crime Agency, focusing on the cybercrime group Scattered Spider, known for their young, often teenage membership and previous high-profile attacks, including assaults on Las Vegas casinos.

Motivations Behind the Attack: Joe Tidy elaborates on the motivations of Scattered Spider, stating, "Almost all cybercrime is about money... these young hackers are also doing it for infamy and online fame" (02:44). The lucrative nature of ransomware attacks is highlighted by past incidents where significant ransoms, such as the reported $15 million paid by Caesar's Palace, underscore the financial incentives driving such cybercriminal activities.

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Economic Indicators and Market Updates

Following the ransomware story, the report transitions to other significant economic developments:

UK Inflation Surge: The UK has experienced a rise in the inflation rate, which climbed to 3.5% in April, up from 2.6% in March. This increase is primarily driven by higher household bills, affecting consumers and businesses alike.

Surge in Japan's Tourism: Japan witnessed a remarkable 28.5% increase in foreign visitors in April, reaching a record 3.9 million tourists. This surge is largely attributed to the popular cherry blossom season, boosting the local economy and tourism sector.

EU's Crackdown on Chinese Parcels: The European Union is intensifying its regulation of small parcels imported from China. Klitsja Sala of the BBC reports, "Almost 5 billion small parcels were sent to the EU last year, most of them from China. None of them had to pay customs duties. This might change soon" (04:11). The EU plans to implement a flat fee of just over $2 on these parcels to address issues related to safety, unfair competition with local businesses, and the overwhelming workload placed on border control staff.

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Environmental and Economic Impact on Uganda's Shea Butter Industry

The report sheds light on the intersection of climate change and economic livelihoods in Uganda's shea butter industry.

Economic Importance of Shea Butter: Shea butter is a vital commodity for millions of African women, serving as a source of income and a key ingredient in skincare and food products. Mariam, a seasoned shea butter producer, shares her struggles: "When I started this business, I used to sell 3 to 4 jerrycans. Nowadays, I only get 5 liters. I was able to make 300,000 Ugandan shillings. Nowadays, I only make 100 to 50,000 Ugandan shillings. Money is not enough" (06:06).

Impact of Climate Change: Prolonged droughts, exacerbated by climate change, have led to crop failures in the shea nut tree harvest. Conservationist Mustafa Gerima expresses his concerns: "Seeing people cut the tree has always caused a lot of pain in my heart... they look at the tree as a cheap alternative source of income" (05:26). The destruction of shea trees for charcoal production threatens both the environment and the economic stability of countless families dependent on this resource.

Conservation Efforts: Despite a ban on cutting shea trees imposed by the Ugandan presidency in 2023, enforcement remains challenging. Professor J.B. Okulo of Makerere University notes, "It has been very difficult to implement. But the problem we see is more in urban areas. The demand for charcoal is more in urban areas, not in the rural area" (06:41). Activists like Mustafa emphasize the urgent need for replanting and sustainable practices to prevent the extinction of the shea tree, now classified by the International Union for Conservation of Nature as at high risk.

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Entertainment and Consumer Spending

Concluding the episode, the report highlights a significant cultural and economic event:

Oasis Reunion Concerts: Anticipation surrounds the reunion concerts of the iconic band Oasis in the UK. According to UK bank Barclays, it's projected that Oasis fans will collectively spend approximately $1.4 billion, with each fan expected to spend just over $1,000 on the highly awaited performances. This event is poised to have a substantial economic impact, reflecting the enduring popularity and commercial viability of live music events.

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Additional Segments

The episode also features brief segments on workplace dynamics and advice for handling difficult situations with toxic bosses or annoying coworkers. Rima Reis introduces a new advice segment aimed at helping listeners navigate and resolve workplace drama effectively.

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Conclusion: This episode of Marketplace Morning Report provides a comprehensive overview of significant events impacting the business and economic spheres, from cybersecurity threats to environmental challenges and consumer behaviors. By highlighting these diverse topics, the report offers listeners valuable insights into the interconnected nature of global markets and societal issues.

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Notable Quotes:

• "They have been hit by what's called a ransomware attack, which means that hackers have broken into the company's systems, stolen a load of data from employees and customers, and then scrambled those systems to make them unusable" — Joe Tidy (01:37)

• "Almost all cybercrime is about money... these young hackers are also doing it for infamy and online fame" — Joe Tidy (02:44)

• "Seeing people cut the tree has always caused a lot of pain in my heart... they look at the tree as a cheap alternative source of income" — Mustafa Gerima (05:26)

• "When I started this business, I used to sell 3 to 4 jerrycans. Nowadays, I only get 5 liters... Money is not enough" — Mariam (06:06)

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This summary encapsulates the key discussions and insights from the episode, providing a detailed overview for listeners and those who missed the broadcast.

Transcript

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[Lianna Byrne]

Hackers are targeting UK retailers and businesses are feeling it in their profits. Good morning, this is the Marketplace Morning Report and we're live from the BBC World Service. I'm Lianna Byrne. So here in the uk, big retailers have been dealing with a curious case of hacking. One of them, Marks and Spencer, also known as MS, estimates the disruption could cause about $400 million. The BBC's cyber correspondent, Joe Tidey has been following the story. Hi, Joe.

[Joe Tidy]

Hello, Joe.

[Lianna Byrne]

This is a crazy story. Can you just start from the beginning for us?

[Joe Tidy]

Yes. So it was over around Easter time when we heard that this supermarket chain, this giant of the high street in the UK called Marks & Spencer, was involved in some sort of cyber incident. And slowly that has got worse and worse and worse. And it turns out that M and S, although they're not saying it, they have been hit by what's called a ransomware attack, which means that hackers have broken into the company's, stolen a load of data from employees and customers, and then scrambled those systems to make them unusable for M and S. And we are seeing the fallout of that. With empty shelves in some stores, the company cannot take any online orders at all. And now we learn today that the cyber attack and of course the incident response and the damage and the loss of earnings they've incurred from that is going to cost about $400 million. And also we hear from the UK's National Crime Agency, the equivalent of the FBI. They are looking squarely in their investigations at a very unique and unusual area of the cybercrime ecosystem which is dominated by young English speaking US and UK hackers. They're known as Scattered Spider.

[Lianna Byrne]

The question that keeps coming up for me is why? Why would they do this?

[Joe Tidy]

Well, it's money. Almost all cybercrime is about money. The slight interest here of course, is with Scattered Spider, this group of young, in some cases teenage hackers, they're also doing it for infamy and online fame amongst their. This same cluster of cybercriminals or this same area of the cybercrime ecosystem was responsible for, well, linked anyway, to some attacks a couple of years ago on the Las Vegas casinos. And it's been reported, although not admitted, that Caesar's palace paid something like $15 million to the hackers. So there's a lot of money to be gained in these kind of attacks.

[Lianna Byrne]

Seems like it. Okay, the BBC's Joe Tidy, thank you so much for joining us in Marketplace.

[Joe Tidy]

Thank you.

[Lianna Byrne]

Now let's do the numbers. UK rate of inflation rose to 3.5% in April, up from 2.6% in March, driven by higher household bills. And the number of foreign visitors to Japan soared by 28.5% in April to a record 3.9 million compared to last year, thanks in large part to cherry blossom season. Now, just like the us, the EU is cracking down on small parcels so sent from China. It's planning to introduce a flat fee of a little more than US$2 and billions of small customs free parcels that arrive straight to people's doors from Chinese retailers like Shein and temu. Here's the BBC's Klitsja Sala.

[Klitsja Sala]

Almost 5 billion small parcels were sent to the EU last year, most of them from China. None of them had to pay customs duties. This might change soon. EU officials claim many of these items are unsafe or fake and don't compete fairly with local. They say the sheer volume of these parcels has created a huge workload for border control staff.

[Lianna Byrne]

Now, if you're into your moisturizers, then you've probably come across shea butter. Well, did you know it provides an income for millions of women across Africa? The creamy produce from the shea nut tree is used in skincare and food and the US and the EU are top buyers. But environmentalists say climate change is threatening the harvest and many farmers are cutting them the trees for charcoal instead. The BBC's Jiroga Mugai reports from Uganda.

[Jiroga Mugai]

The golden butter from the shea nuts has provided a reliable income for millions of women across the region. But prolonged droughts attributed to climate change have led to crop failures. For some, that means cutting down the trees to sell as charcoal.

[Mustafa Gerima]

The destruction has been brought about by charcoal business.

[Jiroga Mugai]

And with us is conservationist Mustafa Gerima.

[Mustafa Gerima]

Seeing people cut the tree has always caused to me a lot of pain in my heart. Our community is affected by poverty, so they look at the tree as a cheap alternative source of income.

[Jiroga Mugai]

The nuts from the Uganda shea tree are used to make high quality Nilotica shea butter, used in skincare and cooking. Mariam, a mother of six, has been making shea butter for over 20 years. She sells one 500 milliliter bottle of sheer nut oil for around two and a half US dollars. But she says these days she's struggling to make a living.

[Mariam]

When I started this business, I used to sell 3 to 4 jerrycans. Nowadays I only get 5 liters. I was able to make 300,000 Ugandan shillings. Nowadays I only make 100 to 50,000 Ugandan shillings. Money is not enough.

[Jiroga Mugai]

Such is the concern of the felling of the share trees for charcoal that the Ugandan presidency put a ban on the practice in 2023. But experts like Professor J.B. okulo of Makerere University say it's not working, largely because of the demand.

[Mustafa Gerima]

It has been very difficult to implement. But the problem we see is more in urban area. The demand of the charcoal if you move, is more in urban area, not in the rural area.

[Jiroga Mugai]

The International Union for Conservation of Nature classifies the Sheer Tree as at a high risk of extinction. And activists like Mustafa are calling for urgent action to protect it, including replanting.

[Mustafa Gerima]

If we don't take urgent steps to stop this tree from getting lost, we may lose it for good.

[Jiroga Mugai]

But for now, the fate of the sheer tree and its precious butter remains uncertain. In uganda, I'm the BBC's Nierogem Muigai for Marketplace.

[Lianna Byrne]

And finally, Oasis fans are expected to spend $1.4 billion to attend the band's highly anticipated reunion concerts in the uk. According to the UK Bank Barclays, each fan is expected to spend just over $1,000. I'm Lianna Byrne with the Marketplace Morning report from the BBC World's Service.

[Rima Reis]

Got a toxic boss you don't know how to deal with? Maybe a co worker who sends the most annoying slack messages. Well, we've got a new advice segment to help you out. Oh, girl, you gotta go. I have been coaching women in how to quit for a long time. Often, many of us are like ignoring signs that it's time to move on to a new opportunity and then blocking our blessings I'm Rima Reis, and this week on this is Uncomfortable. We find solutions to your work drama. Listen, wherever you get your podcasts.