Retail Sector on High Alert After Surge in Cyberattacks

The retail sector is facing an unprecedented wave of cyberattacks, underscoring the escalating risks to operational continuity and customer trust. In recent weeks, several major retailers have suffered ransomware attacks that led to significant disruptions – shuttering online services, halting payments, and impacting supply chains.

One major retailer suffered a ransomware attack that took core systems offline, with insiders warning it could take months to recover due to a lack of cyber readiness or continuity planning. Another leading chain faced contactless payment outages across hundreds of locations, impacting operations and causing delays in restocking shelves. A third well-known brand responded to cyber threats by proactively limiting internet access and tightening internal controls to prevent further compromise.

In 2024 alone, ransomware attacks surged globally by 11%, reaching 5,414 reported incidents, according to Cyberint’s 2024 Ransomware Annual Report. The retail industry was disproportionately affected, accounting for 15.2% of those cases – second only to manufacturing. This reflects a growing trend: attackers are targeting industries where even short disruptions can have widespread consequences.

The financial cost of these attacks continues to climb. The Sophos 2024 State of Ransomware in Retail Report revealed that the average recovery cost for retail organizations reached $2.73 million, up from $1.85 million the previous year. These figures include direct costs such as ransom payments and remediation, as well as indirect losses from business downtime, legal fees, regulatory fines, and customer churn.

What’s often underestimated, however, is the long-term reputational impact. A 2024 UK consumer survey by PwC found that 78% of shoppers would stop buying from a retailer for several months after a data breach, and 35% would never return. This erosion of customer trust can have a compounding effect, particularly when retailers are already operating on tight margins and competing for digital loyalty. In an age where customer retention is closely tied to digital trust, a single ransomware incident can undo years of brand investment.

Threat actors are also becoming more tactical. Sophos reports that 92% of ransomware attacks on retail organizations involved attempts to compromise backup systems, with nearly half of those attempts succeeding. This renders many traditional disaster recovery plans ineffective, especially where backup environments are insufficiently segregated or lack immutability.

The situation is further complicated by the increased use of double extortion tactics. Attackers not only encrypt data but also exfiltrate it, threatening to leak sensitive information if demands aren’t met. This adds reputational blackmail to an already complex crisis scenario, as retailers must manage customer notification, potential media coverage, and legal exposure – all while trying to restore critical systems.

To navigate this landscape, organizations need more than reactive defence – they need resilience built into the core of their IT strategy. Assured Data Protection, a Rubrik-powered managed service provider, works with retailers to ensure that data protection and recovery are built for the modern threat environment. Our platform enables immutable backups that cannot be deleted or altered by ransomware, automated recovery testing to validate restore points, and near-instant recovery of critical applications to reduce downtime.

Beyond technical recovery, our services also support regulatory compliance, governance policies, and incident response readiness – essential capabilities for protecting both operational continuity and brand reputation in a high-risk sector.

To support retail IT and security teams in strengthening their defences, we’ve created a free resource: 10 Steps to Prepare for a Ransomware Attack

This practical guide outlines clear, actionable measures to reduce exposure, improve recovery readiness, and protect customer trust before an attack occurs.

Download our ransomware guide today and take a meaningful step toward long-term cyber resilience.