Co-op's CEO has just confirmed that their cybersecurity disaster cost £80 million. The attackers? Teenagers are using basic social engineering. In this Hot Takes episode, we break down how "We've contained the incident" turned into an £80 million earnings wipeout, and why the final bill could reach £400-500 million once legal claims are settled.
This isn't just another breach story - it's a wake-up call for every UK business owner who thinks "it won't happen to us."
Key Topics Covered
The Attack Breakdown [0:30]
April 2024 attack by the Scattered Spider groupSocial engineering, not sophisticated exploits6.5 million members affected (100% of Co-op members)2,300 stores disrupted, 800 funeral homes on paper systems£80 million confirmed earnings impact£206 million total sales impact£20 million in direct incident costsZero cyber insurance coverageWhy It Could Get Much Worse [2:30]
Pending ICO fine: £15-20 million likelyIndividual GDPR compensation claims: £25-£150 per personPotential £325 million member compensation exposureFinal bill estimate: £400-500 millionLessons for UK Small Businesses [3:15]
Social engineering beats technical defencesCyber insurance is essential, not optionalBusiness continuity failures amplify costsTraining matters more than firewallsKey Statistics
£80 million - Confirmed earnings impact6.5 million - Customers affected (every single member)£12 - Cost per affected customer (low by UK standards)£325 million - Potential member compensation exposure17-20 years old - Age of arrested suspects2,300+ - Stores affected by operational disruptionResources & Links
Read the complete breakdown: Link
ICO Statement on Retail Cyber IncidentsComputer Weekly: Co-op breach coverageInsurance Insider: Co-op's lack of cyber coverageUK Government Cyber Security Breaches Survey 2025Action Items for Listeners
Check your cyber insurance policy - Do you have coverage? Is it adequate?Review employee training - When was the last time your team received social engineering awareness training?Test business continuity - Can your operations survive 2 weeks offline?Read the full blog post - Get all the details and cost breakdownsQuote of the Episode
"Co-op's disaster isn't a cybersecurity failure. It's a business leadership failure. And if you're listening to this thinking your business is different, you're next."