Weak Password Opens Door to Devastating Ransomware Attack That Shut Down Historic UK Firm
A ransomware attack exploiting a weak employee password has brought down one of the UK’s oldest transport firms, KNP Logistics Group, ending a 158-year legacy and putting 700 employees out of work.
KNP, which operated more than 500 lorries across the UK under brands such as Knights of Old, became one of thousands of UK businesses to fall victim to ransomware last year. The company confirmed that attackers managed to guess an employee’s password, which gave them access to its internal systems and eventually led to full encryption of company data.
Data Encryption and Ransom Demands Left KNP Powerless
Once inside KNP’s systems, a ransomware gang known as Akira encrypted essential company data, locking staff out of every tool they needed to run day-to-day operations.
The attackers issued a chilling message:
“If you’re reading this it means the internal infrastructure of your company is fully or partially dead… Let’s keep all the tears and resentment to ourselves and try to build a constructive dialogue.”
While the hackers did not initially name a ransom amount, a third-party ransomware negotiation firm estimated that demands could have reached £5 million—a figure the company simply could not afford.
KNP’s insurance coverage proved insufficient, and without access to critical business data, the company collapsed.
Human Error Still the Top Threat Vector
KNP Director Paul Abbott acknowledged the attack stemmed from an exploited password but said he had not told the employee responsible:
“Would you want to know if it was you?”
Despite having cybersecurity insurance and compliance with industry IT standards, one compromised login was all it took.
This scenario is all too common. According to Richard Horne, CEO of the National Cyber Security Centre (NCSC), which operates under GCHQ:
“We need organisations to take steps to secure their systems, to secure their businesses.”
Cybersecurity Teams Battle a Growing Ransomware Threat
The NCSC now deals with a major cyberattack every day. It works alongside agencies like MI5, MI6, and the National Crime Agency (NCA) to respond quickly when ransomware gangs strike.
Using intelligence tools, the NCSC attempts to detect and remove intruders before they can activate their malicious software. A team member, known only as “Jake,” shared his experience of stopping a ransomware deployment during a night shift:
“You understand the scale of what’s going on and you want to reduce the harm. It can be thrilling, especially if we’re successful.”
But the challenge is significant. As another NCSC officer, “Sam,” pointed out:
“They’re just constantly finding organisations on a bad day and then taking advantage of them.”
Despite their work, ransomware remains the most significant cybercrime threat, and incidents are increasing at an alarming rate.
Rise in Attacks on Major UK Enterprises and Public Bodies
KNP is far from the only high-profile victim. In recent months:
- Marks & Spencer, Harrods, and the Co-op Group have all experienced ransomware breaches.
- The Co-op confirmed that data belonging to all 6.5 million members had been stolen.
- Hackers accessed M&S systems through social engineering tactics, causing delivery delays and customer data theft.
Suzanne Grimmer, head of the ransomware response team at the NCA, warned:
“If it continues, I predict it’s going to be the worst year on record for ransomware attacks in the UK.”
She noted that attacks have doubled since she took charge, now reaching 35 to 40 incidents a week.
Many attacks no longer require technical skills. Some hackers are now using social engineering, such as tricking IT helpdesks, to gain access. Tools bought off the dark web make launching these attacks easy, even for novices.
Criminals Are Younger and More Sophisticated
James Babbage, Director General for Threats at the NCA, said many new hackers are teenagers who transition from gaming to cybercrime:
“They’re recognising that their sort of skills can be used to con help desks and the like into getting them access into companies.”
Once inside, attackers can deploy ransomware, steal data, and demand millions in ransom payments.
Babbage called ransomware:
“A national security threat in its own right, both here and throughout the world.”
This view is echoed in official UK government reports. In December 2023, Parliament’s Joint Committee on the National Security Strategy warned of a “high risk of a catastrophic ransomware attack at any moment.” The National Audit Office also said that the threat is severe and rapidly advancing.
Most Companies Are Unprepared and Reluctant to Report
Despite the rising risk, many companies do not report ransomware attacks and often pay criminals directly to recover data. Statistics are hard to collect because reporting is voluntary, and most firms fear reputational damage.
The UK government is now considering banning public institutions from paying ransoms and introducing mandatory reporting for private companies that consider payment.
Cybersecurity expert Paul Cashmore, who worked with KNP’s insurers, said:
“This is organised crime. I think there is very little progress against catching the perpetrators, but it’s devastating.”
Cybersecurity Readiness Still Lags Behind the Threat
Back in Northamptonshire, KNP’s Paul Abbott now speaks to other businesses about their vulnerability. He suggests introducing a nationwide requirement for businesses to prove basic cybersecurity competence:
“There needs to be rules that make you much more resilient to criminal activity.”
He compared it to a “cyber MOT”, a routine check that could confirm whether a business is protected against known threats.
The case of KNP shows that even century-old institutions with large fleets, insurance, and IT compliance can be brought down by a single weak password.
