Scattered Spider: How Hackers Target Retailers with Social Engineering

Last Updated: May 18, 2025By

Understanding the Threat from Scattered Spider

An unsettling incident involving a major U.S. retailer has brought to light the sophisticated methods of a hacking group known as Scattered Spider. According to Jon DiMaggio, a former NSA analyst, and now chief security strategist at Analyst1, this criminal group recently made an audacious attempt to breach the retailer’s systems by posing as one of the company’s own employees.

Scattered Spider is notorious for techniques such as SIM swapping and deceptive calls to IT support. They have even breached high-profile companies like MGM and Caesars under the alias UNC3944 or Octo Tempest. DiMaggio had the opportunity to witness one such attempt when a fraudster contacted a retailer’s help desk, convincingly impersonating a locked-out employee.

Staying Ahead of Cyber Threats

DiMaggio’s experience underscores how equipped these offenders are with critical information, potentially gathered through social engineering, making their deception believable. “The caller had detailed employee IDs and emails,” DiMaggio explained. This showcases the need for organizations to reinforce their defense strategies.

Thankfully, the retailer in question had a strong cybersecurity team, including former intelligence and law enforcement experts. This highlights the importance of robust security infrastructure in tackling evolving threats. Mandiant’s CTO, Charles Carmakal, stresses the challenge defenders face in identifying actual threats amid constant alerts.

Proactive measures can help mitigate such risks. The UK retailer Co-op’s decision to disable its systems temporarily exemplifies preemptive action against Scattered Spider. As cybercriminals refine their tactics, companies must stay vigilant and adaptable to safeguard against these relentless threats.

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