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In a new security advisory, the Retail Council of Canada (RCC), drawing on findings from Mandiant and Google's Threat Intelligence Group, warns that UNC3944—better known as the Scattered Spider threat actor—is aggressively targeting the retail sector across the US, UK, and Canada. Retail Council of Canada.

Initially famed for SIM‑swap operations, the group has escalated its tactics to include ransomware deployment, data theft, and breaches of large-scale infrastructure. Recent high‑profile attacks in the UK—such as those on Marks & Spencer, Co‑op, and Harrods—resulted in significant operational disruptions and data exfiltration. Financial Times

According to Google Threat Intelligence and Mandiant, Canadian retailers remain at elevated risk. Even without confirmed domestic breaches, the group’s targeting profile strongly suggests a high likelihood of future attacks against Canadian retail chains. The Guardian

Why Retail Is a Target

Retailers hold massive volumes of sensitive personal and financial information, often housed in complex and legacy IT systems—making them compelling targets for threat actors seeking quick payouts and widespread impact.

Scattered Spider’s Tactics

The advisory highlights that Scattered Spider employs advanced social-engineering techniques such as SIM swapping, help-desk impersonation, and multifactor authentication bypass. Once inside, they weaponize legitimate administrative tools ("living off the land") and deploy ransomware payloads like ALPHV/BlackCat and DragonForce to cripple operations. Financial Times

The group is notorious for maintaining prolonged, covert access, often disabling detection systems to prolong their intrusion—making detection and recovery difficult. quorumcyber.com

Defensive Measures for Canadian Retailers

To counter this complex threat, the RCC and Mandiant recommend a multi-layered defense strategy:

• Strengthen identity and access management, including phishing‑resistant multifactor authentication and privileged account controls.
• Enhance endpoint security by enforcing EDR solutions and monitoring authentication logs for unusual patterns.
• Harden network architecture through strict outbound traffic rules and domain blacklisting.
• Implement rigorous detection mechanisms to spot credential misuse, MFA changes, or lateral movement early.
• Train employees—especially IT and help‑desk staff—to recognize and report social-engineering exploits promptly secureworld.io

Final Takeaway

Scattered Spider’s resurgence underscores that sophisticated cyber threats are now a sourcing risk to Canadian retailers. The RCC stresses that it’s not a matter of “if” but “when” such actors will strike locally, urging organizations to heighten resilience through both technical hardening and staff awareness. Retail Council of Canada.