The Co-operative Group, a prominent UK consumer co-operative, has disclosed a significant data breach affecting 6.5 million of its members. The cyberattack, which occurred in April, initially led to widespread system disruptions, causing food shortages across its grocery stores. Co-op CEO Shirine Khoury-Haq publicly apologized for the incident, confirming that while no financial or transactional data was exposed, the contact details of all its members were successfully exfiltrated by the attackers. This breach represents a major blow to the co-operative, which prides itself on its member-owned structure and community focus.
The sophisticated nature of the attack points to a well-organized threat actor. Sources indicate the breach began on April 22nd through a social engineering tactic that enabled the attackers to reset an employee’s password. Once inside the network, they moved laterally, ultimately stealing the Windows NTDS.dit file. This critical file contains password hashes, allowing attackers to crack credentials offline and expand their access within the network. The Co-op’s proactive shutdown of IT systems was a measure to prevent the further spread of the threat and the deployment of ransomware, specifically identified as DragonForce.
Further investigation and reports have linked this incident to the notorious Scattered Spider threat group, which has also been connected to the cyberattack on Marks & Spencer (M&S) where DragonForce ransomware was indeed deployed. The BBC corroborated these links, speaking directly with a DragonForce ransomware operator who confirmed an affiliate’s involvement in the Co-op breach and provided samples of stolen corporate and customer data. This chain of attribution highlights the growing sophistication and interconnectedness of cybercriminal organizations.
In a significant development, the UK’s National Crime Agency (NCA) recently announced the arrest of four individuals suspected of involvement in the cyberattacks targeting Co-op, M&S, and an attempted intrusion on Harrods. The suspects, ranging in age from 17 to 20, were apprehended in London and the West Midlands.
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