Co-op rushes to fix contactless payment issue in some stores amid cyber-attack fallout

TruthLens AI Suggested Headline:

"Co-op Addresses Contactless Payment Disruptions Following Cyber-Attack"

Co-op rushes to fix contactless payment issue in some stores amid cyber-attack fallout analysis cover image The Guardian 8.8
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Original Article Source: https://www.theguardian.com/business/2025/may/06/co-op-rushes-to-fix-contactless-payment-issue-in-some-stores-amid-cyber-attack-fallout
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AI Analysis Average Score: 8.8
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TruthLens AI Summary

The Co-op has been dealing with significant operational challenges following a cyber-attack that affected its contactless payment systems in up to 200 of its 2,300 stores across the UK. On Tuesday morning, customers encountered issues with contactless payments, but by mid-afternoon, the Co-op managed to restore functionality across all locations. The spokesperson for the Co-op confirmed that a small number of stores were impacted, and they worked swiftly to rectify the situation. However, the attack also disrupted deliveries of goods, as some IT systems were shut down to contain the breach. The Co-op has been transparent with its customers about the situation, with Chief Executive Shirine Khoury-Haq noting the organization's efforts to minimize disruption for members and patrons during this challenging period.

This cyber incident is part of a wider trend affecting major retailers, as seen with Marks & Spencer, which has been experiencing ongoing issues for three weeks due to a similar attack. Reports indicate that both the Co-op and M&S incidents may be linked to the hacking group Scattered Spider and its affiliates, who are known for utilizing specific tactics in cyber-attacks. The National Cyber Security Centre is collaborating with both companies to investigate the nature of these breaches, and the Metropolitan police's cybercrime unit, alongside the National Crime Agency, is actively involved in the investigations as well. The Co-op has reassured its customers that while personal data such as names and contact details may have been accessed, there has been no breach of passwords or financial information, aiming to maintain trust amid these security challenges.

TruthLens AI Analysis

The article provides insight into the recent challenges faced by the Co-op, a UK-based food retailer, due to a cyber-attack that has disrupted its operations. The incident highlights the vulnerability of businesses to cyber threats and the subsequent impact on consumer trust and supply chain stability.

Cyber-Attack Fallout

The Co-op faced significant operational disruptions as a result of a cyber-attack, which affected its contactless payment systems in up to 200 out of its 2,300 stores. This situation necessitated swift action to restore functionality and minimize customer inconvenience. The rapid response indicates the company's commitment to customer service, but it also reveals the fragility of technological systems that underpin modern retail.

Public Perception and Trust

There is a concern that such incidents can erode consumer trust in the brand. The article emphasizes the importance of communication from the Co-op, particularly through the letter from its CEO, which aims to reassure customers that measures are being taken to address the situation. This approach seeks to mitigate potential reputational damage and maintain customer loyalty during a crisis.

Comparison to Competitors

The report mentions similar cyber incidents affecting other retailers like Marks & Spencer and Harrods, suggesting a broader issue within the industry. By linking these incidents, the article may induce a sense of urgency for better cybersecurity measures across the retail sector, which could lead to increased investments in technology and security protocols.

Economic and Political Implications

The disruptions caused by cyber-attacks could have wider implications for the economy, particularly if they become more frequent. Retailers may face increased operational costs and potential declines in sales if customers lose confidence in their ability to protect personal information. Politically, such incidents may prompt discussions around regulatory measures and the need for enhanced cybersecurity standards in the retail industry.

Target Audience

The article primarily targets consumers, particularly those who shop at the Co-op, as well as stakeholders and investors in the retail sector. By addressing the incident and its implications, the Co-op aims to reassure customers and preserve its market position.

Market Impact

This news could affect investor sentiment towards Co-op and its competitors, potentially influencing stock prices in the retail sector. Companies that are perceived as vulnerable to cyber threats may see declines in their market capitalization as investors recalibrate their risk assessments.

Global Context

While the article focuses on a UK retailer, the implications of increased cyber threats resonate globally. As businesses worldwide face similar challenges, this incident underscores the importance of robust cybersecurity measures in a digitally interconnected economy.

AI Influence in News Writing

It is possible that AI tools were used in crafting this article, possibly for structuring the information or analyzing trends. However, the nuanced understanding and human touch in addressing consumer concerns suggest a more traditional approach to journalism was employed.

The article effectively communicates the immediate concerns stemming from the cyber-attack while also contextualizing it within broader industry trends. The urgency of the situation and the emphasis on consumer trust suggest that maintaining a positive public perception is a critical objective for the Co-op in the aftermath of this incident.

Unanalyzed Article Content

Source URL: https://www.theguardian.com/business/2025/may/06/co-op-rushes-to-fix-contactless-payment-issue-in-some-stores-amid-cyber-attack-fallout

The Co-op was forced to scramble to fix a problem with contactless payments at dozens of its stores on Tuesday, as it grapples with the fallout from a cyber-attack which has left gaps on shelves.

The food retailer said that up to 200 of its 2,300 stores across the UK had been affected by an issue with its contactless payment systems on Tuesday morning but said the problem had been fixed in all stores by mid-afternoon.

A spokesperson for the Co-op said it had had “a small number of stores with contactless payment issues” earlier on Tuesday, but contactless payment was now available again in all of its shops.

The spokesperson said deliveries of some goods to stores had also been affected as the group had been forced to shutdown some systems as part of its efforts to contain the attack.

The Guardianrevealedlast Wednesday that the Co-op had beenforced to shut downparts of its IT system after discovering an attempted hack, days after rival Marks & Spencer faced aserious cyber-incident.

On Thursday, it emerged that luxury department store Harrods hadalso been attacked. Its stores and website are continuing to trade.

The Co-op, which runs more than 800 funeral parlours and offers legal and financial services as well as its chain of grocery stores, said hackers had been able to access personal data including names and contact details relating to an undisclosed number of the mutual’s current and past members – of which there are more than 6.2 million. Passwords and financial details were not accessed.

In a letter to customers,Shirine Khoury-Haq, the chief executive of the Co-op, said the group was “experiencing significant disruption”.

She added: “Our frontline colleagues are focused on minimising any disruption that might be experienced by our members and customers.”

M&S is now facing its third week of disruption, with its website closed and deliveries to stores affected. Over the weekend, some outlets were unable to offer meal deals as they run short of key items such as crisps and biscuits amid on-going problems with deliveries and stock systems. It is understood that M&S customer data has not been accessed.

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Both the Co-op and M&S attacks have been blamed on hackers using tactics commonly linked to thehacking group Scattered Spiderand other similar and possibly linked associates such as Lapsus$ who frequent the same Telegram channels and hacking forums, the trade journal Bleeping Computer reported.

The National Cyber Security Centre said it was working with M&S and the Co-op to understand the nature of both incidents, and is expected to examine any potential links.

The Metropolitan police confirmed last week that detectives from its cybercrime unit, assisted by colleagues from the NationalCrimeAgency (NCA), were investigating the attack on M&S. The NCA is also investigating the Co-op hack.

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Source: The Guardian