Supply Chain Cyberattacks: Lessons from a Retail Incident

In early May 2025, the UK retail sector experienced a wake-up call. A ransomware attack targeting a retailer’s IT infrastructure disrupted supply chains, impacted point-of-sale systems, and exposed sensitive customer and employee data. This incident echoes a growing trend of cybercriminals exploiting supply chain vulnerabilities to access larger targets indirectly.

 

As businesses become increasingly interconnected, a single compromised vendor can open the door to widespread disruption. This blog examines what happened in a retailer’s attack, the risks it reveals, and how Core to Cloud helps organisations build more resilient digital supply chains.

 

What Happened?

A large UK retailer recently experienced a major IT outage caused by a cyberattack on one of its service providers. Reports suggest that attackers exploited a vulnerability in a logistics partner’s system to deliver ransomware that ultimately disrupted store operations across the country.

Critical systems — including online ordering, stock management, and customer loyalty programs — were affected. For days, stores reported empty shelves, slow checkout times, and communication issues. While the full extent of the breach is still under investigation, initial findings confirm that sensitive employee and customer data may have been compromised.

Supply Chains as a Threat Vector

Cybercriminals increasingly view supply chains as soft targets. Why attack a well-defended enterprise directly, when an unpatched vendor system can provide an easy way in?

Threat actors often:

  • Target third-party SaaS providers and logistics firms.
  • Use compromised vendor credentials to move laterally.
  • Leverage trusted access to distribute ransomware.
  • Cause cascading failures that impact multiple partners and customers.

This trend is not limited to retail. Similar incidents have occurred in healthcare, financial services, and manufacturing, underscoring the need for a universal rethink of third-party cybersecurity practices.

The Problem with Traditional Risk Assessments

Most businesses continue to assess vendor risk using static security questionnaires, spreadsheets, and infrequent audits. These traditional methods are often time-consuming and susceptible to human error. They can also be easily manipulated by vendors, leading to inaccurate assessments. Furthermore, they cannot provide real-time visibility into changes or emerging threats. As a result, by the time a risk is finally identified, significant damage may have already occurred.

Core to Cloud’s Continuous Monitoring Approach

Core to Cloud’s Third-Party Risk Monitoring Service addresses these gaps by providing ongoing, real-time visibility into your entire vendor ecosystem. Unlike static assessments, our platform:

  • Continuously scans for security vulnerabilities across your supplier network.
  • Delivers real-time alerts when a partner’s risk profile changes.
  • Monitors for regulatory compliance breaches (e.g., GDPR, ISO 27001).
  • Uses threat intelligence to identify potential compromises early.

With a single pane of glass, organisations can view risk scores, compliance status, and remediation recommendations for each third-party relationship.

How It Works

Our system evaluates your vendors by leveraging a combination of open-source intelligence (OSINT), threat feeds, vulnerability databases, and dark web monitoring. Each vendor is assigned a dynamic risk score that reflects several critical factors, including their exposure to known vulnerabilities, their history of security incidents and threat activity, the effectiveness of their security controls, and their overall compliance posture and data governance maturity. Clients have the ability to set risk thresholds, prioritise remediation efforts, and implement autonomous workflows to ensure timely and effective action.

Real-World Use Case

A Core to Cloud client in the legal sector identified a high-risk partner through our platform — a data hosting firm with an unpatched vulnerability listed in a CVE database. The firm had self-certified as compliant just weeks earlier. By flagging the issue, the client was able to suspend data transfers, request remediation, and avoid a potential breach.

This level of insight and control is critical in preventing incidents like this breach.

Key Benefits of Core to Cloud’s Supply Chain Protection

  • Real-time visibility into third-party vulnerabilities.
  • Autonomous alerts on compliance gaps and threat activity.
  • Customisable scoring models to align with internal policies.
  • Dark web intelligence to detect data exposure early.
  • Strategic vendor risk reporting to support board-level decisions.

The Broader Impact of this Breach

Beyond financial losses, the attack led to reputational damage, customer frustration, and scrutiny from data protection authorities. It highlights a key truth: security isn’t just about protecting your own perimeter — it’s about securing the entire ecosystem in which you operate.

Supply chain resilience is now a boardroom priority. Customers expect uninterrupted service. Regulators demand evidence of vendor due diligence. And attackers are counting on you to overlook it all.

Why Work with Core to Cloud?

Core to Cloud enables organisations to transition from periodic vendor reviews to a model of continuous oversight. This proactive approach helps identify and mitigate risks before they can impact operations. By enhancing visibility and control, it also improves compliance posture and streamlines the audit process. Additionally, Core to Cloud supports the development of trusted, secure relationships with suppliers across the digital supply chain.

With Core to Cloud, your third-party risk management becomes proactive, measurable, and built for the complexity of today’s digital economy. If you want to learn more, check out our dedicated page here!

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