A single weak password led to the downfall of KNP Logistics, resulting in 730 job losses and underscoring the severe consequences cyber attacks can have on UK businesses.
Hackers from the Akira ransomware group reportedly gained access to the company’s systems by guessing an employee’s password. Once inside, they deployed ransomware that encrypted vital data and locked internal operations, demanding a £5 million ransom. KNP Logistics, a Northamptonshire-based firm with a legacy dating back to 1865, was unable to recover, losing access to key financial records and the ability to secure emergency funding. The company eventually entered administration in June 2024.
Paul Abbott, a director at KNP, said the identity of the employee whose password was compromised remains undisclosed. “Would you want to know if it was you?” he asked, pointing to the emotional toll such breaches can take on staff.
KNP’s collapse reflects a growing trend of ransomware attacks across the UK. Major retailers like Marks & Spencer, Co-op, and Harrods have also fallen victim. Marks & Spencer reportedly lost £40 million weekly following a DragonForce ransomware attack, while Co-op confirmed that personal data of all 6.5 million members was stolen.
National Cyber Security Centre CEO Richard Horne has called for stronger security measures, stressing the urgent need for organizations to protect their systems.
Research shows that over 80% of data breaches are linked to compromised credentials. In the UK, the average cost of a cyber breach rose to £3.58 million between 2023 and 2024. For SMEs like KNP, the financial damage can be irreversible. These smaller businesses accounted for 56% of ransomware attacks in 2024.
The Akira ransomware group, active since March 2023, has targeted small and medium-sized enterprises in the UK and US, accumulating about $42 million from over 250 successful attacks in its first year.
Experts say basic password security remains essential. Studies reveal that 96% of commonly used passwords can be cracked in under a second, and password reuse remains widespread among employees.
As UK law enforcement moves against cybercriminals, including arrests tied to recent attacks on retailers, the threat remains constant. No company is too old or too small to be affected. A
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