One weak password. That’s all it took for a group of hackers to destroy a 158-year-old British company and put 700 people out of work.

Northamptonshire-based transport company KNP is a tragic example of how cyber-attacks can bring down even established businesses. The case reveals a disturbing reality: thousands of companies in the UK are victims of ransomware, one of the most significant cybercrime threats today.

In 2023, KNP managed a fleet of 500 lorries under the brand name Knights of Old. Despite complying with IT security standards and having insurance against cyber-attacks, the company fell victim to a group called Akira.

As Richard Bilton explains for BBC Panorama, the hackers gained access to the system by guessing an employee’s password. Once inside, they encrypted all data and locked down internal systems, leaving the company completely paralysed.

Although a figure was not specified, a firm specializing in ransomware negotiation estimated that the demand could reach £5 million. KNP was unable to pay. All data were lost. The company went bankrupt.

Richard Horne, CEO of the National Cyber Security Center (NCSC), warns that an urgent response is needed and companies must take serious steps to protect their systems and businesses.

The NCSC, which is part of GCHQ, the UK’s intelligence agency, receives reports of a major cyber attack every day. Their teams are trying to detect and stop hackers before they can deploy ransomware, but the task is daunting.

According to the UK government, there were 19,000 ransomware attacks last year. The average demand is around 4 million pounds, and approximately one third of the companies end up paying.

This type of social engineering was the method used in the case of the Marks & Spencer attack, where the attackers gained access to the systems through telephone manipulation.

According to experts, many of the new hackers start out in the gaming world and end up using their skills in cybercrime. Ransomware can be easily purchased on the dark web and is a quick way to obtain large sums of money with little risk of being caught.

The government is now proposing to prohibit public entities from paying ransomware, and to make private companies have to notify any attack and obtain permission to make any payments.

After losing his company, Paul Abbott, director of KNP, has started giving awareness talks: companies should demonstrate that they have up-to-date systems. As a kind of cyber-MOT.

Consultant Paul Cashmore, who advised KNP after the attack, agrees that this is organised crime. And very little is being done to catch the perpetrators. “It’s devastating”.

Conclusion

The KNP case is a warning to all companies: a single weak password can have disastrous consequences. In an increasingly digitised environment, cybersecurity is not an option, it is a critical necessity.

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