Latest news with #KNPLogistics

First Post

How a weak password destroyed a 158-year-old UK company and left 700 people jobless

KNP Logistics, one of Britain's oldest companies, collapsed after a ransomware attack exploited a weak password and hacked into its internal network. The gang of hackers, known as Akira, demanded a ransom of 5 million pounds (Rs 58 crore), which the firm couldn't pay. The transport company eventually filed for bankruptcy, leaving as many as 700 employees jobless overnight read more A gang of hackers, known as Akira, accessed the company's complete network by cracking a weak employee password and then reportedly demanded a ransome for decryption key. Image for Representation. A simple, easy-to-guess password has led to the downfall of one of Britain's oldest companies, leaving more than 700 people without jobs. KNP Logistics, a 158-year-old transportation firm, collapsed after falling victim to a ransomware attack that locked them out of their own systems. According to the BBC, hackers are believed to have accessed the company's complete network by cracking a weak employee password. Once inside, they encrypted data, froze the company's operations and asked for a huge ransom. And just like that, a company that had been around for over a century and a half was gone. STORY CONTINUES BELOW THIS AD This is not a one-off. The UK has been seeing a surge in similar attacks, and if things continue this way, authorities say this could be the worst year yet for ransomware in the country. So how exactly did this happen? And why are so many companies getting hit? Here's a closer look. How a weak password brought down the firm Back in 2023, KNP was running a fleet of 500 lorries — most of them under the well-known brand, Knights of Old. On paper, everything seemed in place. The company said its IT systems followed industry standards, and it even had cyber insurance in case of an attack. But a gang of hackers, known as Akira, got into the system, leaving staff incapable to access any of the data needed to run their business. To regain access, the hackers demanded a ransom payment in exchange for the decryption key. '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,' read the ransom note. A hooded man holds a laptop computer as blue screen with an exclamation mark is projected on him in this illustration picture taken on May 13, 2017. Representational Image/Reuters The hackers didn't name a price, but a specialist ransomware negotiation firm estimated the sum could be as much as 5 million pounds (Rs 58 crore). KNP didn't have that kind of money. STORY CONTINUES BELOW THIS AD In the end all the data was lost, and the company had no other option but to file for insolvency. In a surprising admission to the BBC, KNP director Paul Abbott revealed he never told the employee that their password may have led to the company's collapse. 'Would you want to know if it was you?' he said. Cyberattacks on the rise in the UK Stories like KNP's are more commonplace than you might realise. Recently, prominent UK companies, such as M&S, Co-op, and Harrods, have also fallen victim to similar attacks. In Co-op's case, the data of 6.5 million members was stolen. At M&S, hackers simply tricked IT staff by pretending to be someone they weren't. This tactic, known as blagging or pretexting, works when a hacker creates a fake backstory, builds trust, and slowly talks their way into gaining access. And that's really all it takes. 'They're just constantly finding organisations on a bad day and taking advantage,' one cyber team member from the National Cyber Security Centre (NCSC) told the BBC. 'This is organised crime,' added Paul Cashmore, a cyber expert brought in by KNP's insurers. 'There's very little progress in catching these people — but the impact is devastating.' STORY CONTINUES BELOW THIS AD And the numbers are only climbing. Suzanne Grimmer from the National Crime Agency (NCA) says ransomware attacks have nearly doubled in the past two years. 'If it continues, I predict it's going to be the worst year on record for ransomware attacks in the UK,' Grimmer added. Young gamers are turning to cybercrime Inside Government Communications Headquarters (GCHQ), where some of Britain's best cyber officers work to prevent online threats, they say cyber attacks are a growing concern. The number of cases has now up to 35–40 incidents a week, according to Grimmer. Part of the problem? Hacking is getting easier. 'You no longer need advanced tech skills to pull off a cyberattack,' Grimmer told the BBC. All it takes is a few online tools — many of them bought easily on the dark web. What's even more worrying is where the next wave of hackers is coming from. James Babbage, Director General (Threats) at the NCA, says young gamers are turning to cybercrime, often starting by using their skills to con helpdesks or customer support staff into giving access to internal systems. Once they're in, they deploy ransomware tools and shut everything down. 'It's a national security threat in its own right,' Babbage said. STORY CONTINUES BELOW THIS AD According to the UK government's cyber-security survey, there were an estimated 19,000 ransomware attacks on local businesses last year. The average ransom is around four million pounds (Rs 46 crore), and around one in three companies simply pay up to keep the ship afloat. Earlier this year, the National Audit Office warned that the cyber threat to the UK is severe and evolving fast. New government proposals suggest that public bodies could soon be banned from paying ransoms, while private firms may need to report attacks and seek permission before paying. 'Every victim needs to make their own choice,' Babbage said. 'But it's the ransom payments that are keeping this industry alive.' Back in Northamptonshire, KNP's boss Paul Abbott is now using his story as a warning. He gives talks urging businesses to tighten their defences and calls for companies to undergo mandatory checks — something like a regular 'cyber-MOT.' 'There need to be rules,' he told the BBC, 'that make you much more resilient to criminal activity.' With input from agencies