Home Technology A Single Password Breach Topples 158-Year-Old Firm, Leaving 700 Jobless

A Single Password Breach Topples 158-Year-Old Firm, Leaving 700 Jobless

by Bustop TV News
A Single Password Breach Topples 158-Year-Old Firm, Leaving 700 Jobless

A ransomware attack, triggered by what experts believe may have been a single compromised password, led to the collapse of KNP Logistics—a historic Northamptonshire-based transport firm—putting 700 employees out of work.

KNP is among thousands of UK businesses that have suffered cyberattacks, a threat now affecting companies of all sizes. Major retailers including M&S, Co-op, and Harrods have all recently experienced significant data breaches. In fact, Co-op’s CEO confirmed that the personal information of all 6.5 million of its members had been compromised.

At KNP, hackers reportedly guessed an employee’s password, granting them access to the company’s internal systems. Once inside, the criminals encrypted key data and rendered operational systems useless.

Paul Abbott, a director at KNP, chose not to disclose to the affected employee that their password may have been the entry point for the attackers. “Would you want to know if it were you?” he asked, reflecting on the emotional toll of such a revelation.

Richard Horne, CEO of the UK’s National Cyber Security Centre (NCSC), says businesses need to prioritize digital security. Speaking to Panorama, which received rare behind-the-scenes access to NCSC’s anti-ransomware teams, Horne emphasized the importance of strengthening organizational defenses.

One Small Error, Massive Consequences

In 2023, KNP operated a fleet of 500 trucks, primarily under its well-known Knights of Old brand. The company met industry cybersecurity requirements and held cyber insurance. But that wasn’t enough.

The cybercriminal group Akira infiltrated the system, encrypting data and rendering operations impossible. A ransom note left behind stated:

“If you’re reading this, your company’s internal systems are fully or partially non-functional… Let’s skip the drama and talk.”

While the attackers didn’t name a specific figure, experts estimated the demand at up to £5 million—far beyond what the firm could afford. Ultimately, KNP couldn’t recover its data and was forced to shut down.

A Growing Threat

The NCSC handles major cyberattacks daily and is part of the UK intelligence agency GCHQ. “Hackers aren’t doing anything revolutionary,” says “Sam” (a pseudonym), who leads an NCSC team dealing with live incidents. “They’re just catching companies on a bad day.”

The center’s goal is to detect intrusions early and remove threats before ransomware can be deployed. But with attackers becoming more sophisticated and numerous, resources are stretched. “There are a lot more of them than there are of us,” Sam admits.

Reliable data is scarce since companies are not legally obligated to disclose attacks or ransom payments. However, government surveys suggest there were around 19,000 ransomware attacks on UK businesses last year. Industry reports estimate the average demand at £4 million, and about a third of victims pay.

Criminals Evolve; So Must Defenses

Richard Horne of the NCSC emphasizes the need for companies to treat cybersecurity as a business-critical function. The NCSC isn’t alone in this effort; the National Crime Agency (NCA) also investigates ransomware cases.

Suzanne Grimmer, who leads an NCA unit on cybercrime, says attacks have nearly doubled in frequency under her watch—rising to 35–40 incidents weekly. “If this trend continues, 2025 could be the worst year yet for ransomware in the UK,” she warns.

Today’s attackers don’t always rely on technical hacks. Some gain access through deception—tricking IT help desks into granting them access, a tactic that’s become easier with tools available on the dark web.

The recent M&S hack was reportedly the result of such social engineering, which caused widespread delivery issues and exposed sensitive customer data.

James Babbage, Director General for Threats at the NCA, says younger hackers—many of whom begin in the online gaming world—are fueling a new generation of cybercriminals. They often exploit simple tactics to gain access, then deploy ransomware they purchased online.

“This is the most serious cyber threat we currently face,” Babbage says, “both here in the UK and globally.”

Urgent National Concern

In December 2023, Parliament’s Joint Committee on the National Security Strategy warned of an imminent risk of a large-scale ransomware disaster. The National Audit Office has also highlighted the rapidly escalating threat.

The government is now considering laws to prohibit public institutions from paying ransoms and may require private firms to disclose incidents and seek approval before making payments.

Paul Abbott, now focused on educating others about cyber risk, believes businesses should be legally required to maintain updated cybersecurity protocols—something like a “digital MOT.” He stresses that without stricter regulations, more companies will fall victim.

According to Paul Cashmore, a cybersecurity consultant brought in by KNP’s insurer, many firms opt to pay ransoms quietly to avoid operational collapse. “This is organized crime,” he says. “Progress in catching these criminals is limited, and the damage is often irreversible.”

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