Impact of ransomware attacks on UK businesses

A single compromised password led to the downfall of KNP Logistics, a 158-year-old transport company in Northamptonshire, leaving 730 employees without jobs. In June 2024, the Akira ransomware group gained access to KNP’s systems by guessing an employee's password, deploying ransomware that encrypted essential data and demanded a £5 million ransom.

Weak Password Leads to Collapse of 158-Year-Old KNP LogisticsWeak Password Leads to Collapse of 158-Year-Old KNP Logistics

The attack severely disrupted KNP's operations, preventing access to financial records and crucial funding, ultimately forcing the company into administration. KNP director Paul Abbott expressed the emotional toll of the incident, revealing he hasn't informed the employee whose password was likely responsible for the breach.

Weak Password Leads to Collapse of 158-Year-Old KNP LogisticsWeak Password Leads to Collapse of 158-Year-Old KNP Logistics

KNP's collapse highlights a growing trend of ransomware attacks targeting UK businesses, with major retailers like Marks & Spencer and Co-op also falling victim. The National Cyber Security Centre (NCSC) warns that organizations must urgently enhance their cybersecurity measures, as over 80% of data breaches are linked to compromised credentials.