Co-op Cyberattack Causes £120 Million Profit Loss

LONDON — A sophisticated cyberattack in April has led to a significant financial hit for the Co-op Group, with the British retailer projecting a £120 million loss in profits for the year. 

The 181-year-old company, which operates a wide range of businesses from food retail to funeral services, stated that it had to temporarily shut down several systems to contain the breach, leading to operational disruptions and affecting food availability in its stores.

The attack, which occurred via a social engineering scheme where attackers impersonated an employee, resulted in an £80 million profit hit in the first half of the year alone. 

Co-op's finance chief, Rachel Izzard, noted that while the company had some cyber insurance, it is not expected to cover the full extent of the "back-end losses." 

The company also plans to invest a further £40 million in the second half of the year to enhance its cyber defences.

The Co-op's Chief Digital and Information Officer, Rob Elsey, highlighted that this type of attack is becoming increasingly common, with other major British companies like Marks & Spencer and Jaguar Land Rover also experiencing similar, prolonged disruptions. 

The company's first-half results reveal an underlying loss before tax of £75 million, a significant drop from the £3 million profit it posted during the same period last year.