Weak Password Let Ransomware Gang Destroy 158-Year-Old Company

A single compromised password brought down KNP Logistics, putting 730 employees out of work and highlighting the devastating impact of cyber attacks on British businesses.

One password is believed to have been all it took for a ransomware gang to destroy a 158-year-old company and put 700 people out of work.

KNP Logistics, a Northamptonshire transport company with roots dating back to 1865, became the latest victim of the Akira ransomware group in June 2024, joining tens of thousands of UK businesses that have fallen prey to such attacks.

The devastating breach began when hackers managed to gain entry to KNP’s computer systems by guessing an employee’s password. Once inside, the Akira gang deployed ransomware that encrypted the company’s essential data and locked down its internal systems, demanding an estimated £5 million ransom.

The attack crippled KNP’s ability to operate, access financial records, and secure crucial new funding, ultimately forcing the 158-year-old firm into administration.

KNP director Paul Abbott revealed the human cost of the cyber attack, admitting he hasn’t told the employee whose compromised password likely led to the company’s destruction. “Would you want to know if it was you?” he asks, highlighting the psychological burden these incidents place on workers.

The collapse of KNP is part of a broader wave of ransomware attacks targeting UK businesses. Major retailers including Marks & Spencer, Co-op, and Harrods have all been hit by cyber criminals in recent months, reads the BBC report.

M&S suffered massive disruption after hackers deployed DragonForce ransomware, resulting in estimated weekly losses of £40 million. Meanwhile, Co-op confirmed that all 6.5 million of its members had their personal data stolen in a separate attack.

Richard Horne, CEO of the National Cyber Security Centre (NCSC), warns that organizations must urgently strengthen their defenses. “We need organisations to take steps to secure their systems, to secure their businesses,” he said, as the NCSC battles international ransomware gangs.

The financial impact of such attacks is escalating dramatically. Research shows that over 80% of data breaches are linked to compromised credentials, with the average cost of a UK cyber breach rising to £3.58 million between 2023 and 2024. For smaller businesses like KNP, these costs can prove fatal.

Small and medium-sized enterprises (SMEs) are particularly vulnerable, with 56% of all ransomware attacks in 2024 targeting businesses with fewer than 50 employees.

The Akira group, which emerged in March 2023, has specifically focused on SMEs across the UK and US, earning an estimated $42 million from over 250 attacks in its first year.

Cybersecurity experts emphasize that basic password hygiene remains the first line of defense. Studies reveal that hacking tools can crack 96% of common passwords in less than a second, while employees frequently reuse passwords across multiple accounts.

As UK authorities arrested four suspects connected to recent retail cyber attacks, the message is clear: no business, regardless of size or history, is immune from the ransomware threat.

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