Weak Password Crashes 158-Year UK Firm, 700 Workers Jobless

A 158-year-old UK company has collapsed due to a critical cybersecurity failure caused by the use of a weak password. This alarming breach led to devastating consequences, forcing the historic firm to shut down operations and resulting in 700 employees losing their jobs. The incident highlights the importance of strong digital security practices and serves as a stark reminder that even well-established businesses are vulnerable to simple but serious cyber threats.

Cybercriminals infiltrated KNP Logistics’ network and encrypted its files, blocking employees from accessing vital company data. The attack, reportedly orchestrated by a ransomware group, forced the shutdown of the 158-year-old UK transport firm, leaving 700 workers unemployed. The breach likely occurred after hackers guessed a staff member’s password, allowing them to disable internal systems and demand ransom, according to the BBC. Although KNP's director, Paul Abbott, cited a weak password as the cause, he has not identified the employee involved.

KNP Logistics operated a fleet of approximately 500 trucks, mainly under the Knights of Old brand. Despite following cybersecurity best practices and holding insurance against cyber threats, the company was unable to withstand the ransomware assault, which was reportedly carried out by the Akira gang. The attackers demanded payment in return for a decryption key, locking the company out of its own operations.

The ransom message left by the hackers stated that the company's internal systems had been severely disrupted and suggested initiating a dialogue rather than reacting with emotion. While the exact amount of ransom was not specified, cybersecurity experts estimated it could be as high as £5 million. Lacking the funds to pay, KNP ultimately suffered irreversible data loss and was forced to cease operations.

The case is not isolated. Other well-known UK businesses, including M&S, Co-op, and Harrods, have also been targeted by cyberattacks. In the Co-op incident, personal data belonging to 6.5 million members was compromised. Richard Horne, head of the UK’s National Cyber Security Centre (NCSC), emphasized the urgent need for organisations to strengthen their digital defenses.

According to NCSC experts, hackers usually exploit known weaknesses rather than inventing new methods. Sam, a cybersecurity specialist with the NCSC, said attackers often scan for poorly protected systems to exploit. The agency actively uses intelligence to detect and counter threats before ransomware can be deployed.

A security officer who goes by the alias "Jake" recounted how his team recently prevented a major breach, describing the experience as intense but rewarding when successful. Meanwhile, Suzanne Grimmer from the National Crime Agency revealed that the number of hacking incidents has nearly doubled in two years, now averaging 35 to 40 per week. She warned that this year could be the worst on record for ransomware activity in the UK.

The surge in cybercrime is partly due to the growing accessibility of hacking tools and services. Grimmer added that social engineering tactics, such as tricking IT staff through phone scams, have lowered the skill barrier for would-be attackers, increasing the risk for all businesses.

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Source: NDTV‍