Google Warns U.S. Retailers: Scattered Spider Hackers Shifting Focus from UK to U.S. Targets

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Alphabet’s Google has issued a stark cybersecurity warning to U.S. retailers, revealing that hackers connected to the Scattered Spider group—linked to recent cyberattacks that paralyzed UK retail giants like M&S—are now actively targeting American retail operations.

“These actors are aggressive, creative, and particularly effective at circumventing mature security programs,” said John Hultquist, chief analyst at Google’s cybersecurity unit.

🕸️ Who is Scattered Spider?

  • Scattered Spider is not a single entity but a loosely connected hacker collective, often made up of young and highly adaptive cybercriminals.

  • The group made headlines in 2023 for cyberattacks on:

    • MGM Resorts International

    • Caesars Entertainment

It now appears to be sector-focused, with retail as its current primary target.

💥 Recent Victims

  • Marks & Spencer (M&S), one of the UK’s most iconic retailers, has had its online operations frozen since April 25 due to a Scattered Spider-linked breach.

  • Google says U.S. retailers may soon face similar high-impact intrusions.

🔍 U.S. Retail Sector on High Alert

  • The National Retail Federation is closely monitoring developments.

    “There aren’t geographic boundaries on these threats,” said Christian Beckner, an NRF vice president.

  • Retail & Hospitality ISAC, a major industry threat-sharing alliance whose members include Costco, McDonald’s, Albertsons, and Lowe’s, is working with Google to brief members on how to mitigate the threat.

🚨 Enforcement Challenges

  • Scattered Spider’s decentralized structure, young members, and a lack of incident reporting by victims make it difficult for law enforcement to act.

  • FBI and CISA have not yet commented on Google’s latest warning.

🧭 Strategic Recommendations

Cyber experts are urging U.S. retailers to:

  • Reassess and reinforce multi-factor authentication (MFA) practices

  • Conduct penetration testing and vulnerability scanning

  • Increase internal monitoring of identity and access management systems

  • Join industry threat-sharing networks like ISAC to stay ahead of threat intelligence

With U.S. retail networks increasingly digitized, Google’s alert underscores the need for proactive defenses, especially as sophisticated, disruptive hacks now span continents and industries with ease.

Sony Forecasts Flat Profit as Trump Tariffs Bite, Bets on Entertainment for Growth

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Sony said on Wednesday it expects operating profit to rise a modest 0.3% to 1.28 trillion yen ($8.7 billion) for the financial year ending March 2026, factoring in a 100 billion yen ($680 million) hit from U.S. tariffs imposed under President Donald Trump’s ongoing trade war.

The profit guidance does not yet reflect the potential easing effects of this week’s U.S.-China trade deal, and executives noted that the final tariff impact could vary significantly depending on trade policy developments.

Despite the caution, Sony’s shares rose 3.7%, buoyed by solid results and the announcement of a 250 billion yen ($1.7 billion) share buyback program.

🧾 Key Financial Highlights

  • FY2025 profit forecast: 1.28 trillion yen (+0.3% YoY), factoring in tariff impact

  • FY2024 actual profit (incl. financial services): 1.4 trillion yen (+16% YoY)

  • Buyback plan: 100 million shares, worth up to 250 billion yen

💼 Strategy & Structural Changes

Sony, once best known for its electronics, is doubling down on entertainment under new CEO Hiroki Totoki, who took the helm in April:

  • Preparing a partial spin-off of Sony Financial Holdings, leaving Sony with <20% stake

  • Scheduled listing of the financial unit in Tokyo on September 29

  • Focus on entertainment resilience, citing performance during COVID-19

“We have seen the resilience of entertainment businesses during economic downturns,” said Totoki.

🎮 Gaming & PS5 Outlook

Sony’s gaming business saw a 12.5% drop in operating profit, with PlayStation 5 (PS5) sales falling 38% YoY in Q1 to 2.8 million units.

Despite this, Sony expects 16% profit growth in gaming this year, driven by:

  • Increased first-party game sales

  • Expected 15 million PS5 units sold in FY2025

  • Launch of “Ghost of Yotei” in October

  • Anticipation for “Grand Theft Auto VI”, though its release was delayed to 2026

CFO Lin Tao emphasized flexibility in PS5 shipments, citing “many uncertainties.”

Sony also:

  • Raised PS5 prices in Europe and UK due to inflation and FX fluctuations

  • Stockpiled inventory in the U.S. ahead of potential trade disruptions

  • Diversified hardware production to offset geographic risks

📉 External Challenges

  • Tariff impact adds a 100B yen drag on forecast

  • Trade uncertainty and currency volatility pose ongoing risk

  • Competition with Nintendo’s Switch 2, launching June 5 with a 15M unit sales target

With the tariff situation in flux, Sony’s balanced approach — doubling down on entertainment, gaming IP, and hardware flexibility — may be key to navigating what could be a volatile fiscal year.

Foxconn Cuts Full-Year Outlook Despite AI Boom, Citing Taiwan Dollar Strength and Tariff Risks

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Foxconn, the world’s largest electronics contract manufacturer and a key supplier to Apple and Nvidia, downgraded its full-year growth outlook on Wednesday, pointing to the recent appreciation of the Taiwan dollar and ongoing tariff uncertainties tied to U.S. trade policy.

Although AI server demand remains strong and drove a 91% year-on-year surge in Q1 profit, Foxconn Chairman Young Liu struck a more cautious tone, dialing back earlier projections of “strong growth” for 2025 to a revised outlook of “significant growth.”

💱 Currency & Trade Pressure

  • The Taiwan dollar’s appreciation against the U.S. dollar, possibly linked to unconfirmed Washington-Taipei currency coordination, is impacting Foxconn’s converted revenues.

  • Liu noted the exchange rate issue “may affect the performance of the revenue amount after conversion into Taiwan dollars.”

  • The U.S.-China trade landscape, despite a recent 90-day tariff truce, still weighs heavily on global supply chains. Foxconn’s footprint in China and Mexico exposes it to ongoing tariff volatility.

“Rapid changes in U.S. tariff policies and exchange rate fluctuations add to uncertainty. We are adjusting our outlook accordingly,” said Liu.

⚙️ Growth in AI and Automotive Still Intact

  • AI server revenue expected to grow at high double-digit rates YoY in Q2.

  • January–March revenue rose 24.2% YoY, a record for Q1.

  • Net profit hit T$42.12 billion ($1.39 billion), beating the T$37.8 billion consensus from analysts (LSEG).

  • Nvidia aims to produce $500B worth of AI servers in the U.S. over four years with help from Foxconn and TSMC.

🚗 EV Expansion and Japan Ties

Foxconn is also pushing ahead in electric vehicles:

  • Its EV arm Foxtron signed an MOU with Mitsubishi Motors last week.

  • Talks continue with Japanese automakers — including possible cooperation with Nissan, though no formal stake has been announced.

“There is some progress with Japanese firms, but nothing to disclose yet,” said Liu.

📉 Market Reaction & Outlook

  • Foxconn shares are down 11.4% YTD, underperforming the Taiwan index (down 5.4%).

  • Shares rose 3.2% on Wednesday ahead of the earnings call, buoyed by strong AI server results but tempered by macroeconomic caution.

While Foxconn’s AI and EV sectors remain growth pillars, currency dynamics and geopolitical frictions—especially with the Trump administration’s aggressive tariff stance—are pushing the firm toward risk-adjusted forecasting in 2025.