How did a weak password lead to the downfall of a 158-year-old UK logistics company in a ransomware attack?

A single weak password led to the devastating collapse of KNP Logistics, a 158-year-old UK transport company, after it fell victim to the Akira ransomware gang. The attackers exploited a compromised employee password, encrypted the company’s internal systems, and demanded a ransom of £5 million. Unable to recover operations or secure funding, KNP was forced into administration, laying off 730 workers. This real-world case highlights the critical importance of strong password hygiene, cybersecurity awareness, and proactive threat mitigation—especially for small and medium businesses (SMEs), who remain the top target for ransomware gangs.

Security News & Threat Intelligence Jul 22, 2025 93 Add to Reading List

How One Weak Password Shattered a 158-Year Legacy

Imagine a company that survived two World Wars, a global recession, and countless changes in the transport industry — but couldn’t survive one weak password. That’s what happened to KNP Logistics, a British transport company founded in 1865, which shut down in 2024 after a devastating ransomware attack. The culprit? A single compromised password.

This blog dives into the shocking true story of how the Akira ransomware gang used basic password guessing to destroy a long-standing company, steal critical data, and cost 700+ people their jobs. It’s a wake-up call for every organization — no matter how big, small, or old.

What Happened to KNP Logistics?

In June 2024, cybercriminals from the Akira ransomware group targeted KNP Logistics by guessing an employee’s weak password. This simple breach gave them access to the company’s internal systems.

Once inside, the attackers encrypted all the company’s vital files, locked down its systems, and demanded a £5 million ransom. Without access to its data or the ability to operate, KNP was paralyzed. The financial losses made it impossible for the company to stay afloat, and it eventually went into administration.

The Real Impact:

730+ employees lost their jobs
A 158-year-old business shut down forever
Millions in damages, with no recovery
Psychological toll on employees — especially the one whose password was exploited

Why Did This Happen? The Password Problem

Weak or reused passwords are one of the easiest ways for hackers to break into systems. In KNP’s case, it took just one guess.

Research Says:

80%+ of data breaches come from stolen or weak passwords.
96% of common passwords can be cracked in under a second.
Many employees reuse the same password across personal and work accounts.

The Rise of Akira Ransomware Gang

The Akira ransomware group appeared in March 2023 and quickly became one of the most dangerous cyber gangs.

In just one year:

They hit 250+ organizations
Made over $42 million
Mostly targeted SMEs (Small & Medium Enterprises)

They focus on companies like KNP, who may not have strong cybersecurity protections.

What Are Other Companies Facing?

KNP wasn’t the only victim. Other major UK companies like:

Marks & Spencer lost £40 million/week due to ransomware
Co-op saw 6.5 million members’ data stolen
Harrods was also hit in a separate incident

This wave of attacks shows that even big brands are struggling to defend themselves.

Cybersecurity Experts Speak Out

According to Richard Horne, CEO of the National Cyber Security Centre (NCSC):

“We need organisations to take steps to secure their systems, to secure their businesses.”

He urges companies to act before it’s too late.

And Cynthia Kaiser, former FBI Cyber Division head, warns:

“If Scattered Spider or Akira is targeting your industry, get help immediately. They can execute full attacks in hours, not days.”

What Startups and SMEs Must Learn

This isn’t just a big company problem. 56% of ransomware attacks in 2024 targeted small businesses with under 50 employees.

Key Takeaways:

Weakness	Impact	Fix
Weak Passwords	Easy to guess and exploit	Use complex, unique passwords
No Multi-Factor Authentication	Single point of failure	Always enable MFA
Lack of Security Awareness	Employees fall for phishing	Train regularly
No Backups	Data loss becomes permanent	Use encrypted cloud backups
Delayed Detection	Attackers gain full control	Use real-time monitoring tools

How to Protect Your Business

Here’s what you can do right now:

Strengthen all employee passwords using a password manager.
Implement MFA (Multi-Factor Authentication) on every account.
Train staff on cybersecurity basics (like phishing and password safety).
Invest in endpoint security and monitoring tools.
Back up data regularly and store it securely.

Timeline and Impact Summary

Event	Date	Details
KNP attacked	June 2024	Akira gang guessed weak password
Systems encrypted	Within hours	All internal data locked
Ransom demand	£5 million	Refused by company
Business closed	Shortly after	158-year-old company dissolved
Jobs lost	730+	Entire workforce laid off

Conclusion

The story of KNP Logistics is more than just a headline. It’s a lesson in how overlooking one basic security practice — like password strength — can destroy everything.

If your business still thinks “It won’t happen to us,” think again.

Ransomware groups like Akira don’t care if you’re 1 year old or 158 — they only care about access. So protect yours before it's too late.

FAQs

What caused the ransomware attack on KNP Logistics?

A weak or compromised employee password allowed the Akira ransomware group to access KNP's internal systems.

Who is responsible for the attack on KNP Logistics?

The Akira ransomware group, a known cybercriminal gang, is believed to have carried out the attack.

How much ransom was demanded in the KNP cyber attack?

Reports estimate the ransom demand was around £5 million.

Was the ransom paid by KNP Logistics?

There is no confirmation that the ransom was paid. Instead, the company entered administration due to operational collapse.

How many employees were affected by KNP's shutdown?

Around 730 employees lost their jobs due to the attack and subsequent closure.

What data was targeted in the KNP ransomware attack?

The attack encrypted vital company data, financial records, and disrupted daily operations.

Is this part of a bigger trend in the UK?

Yes, ransomware attacks on UK SMEs are rising, with 56% of 2024 attacks targeting businesses with fewer than 50 employees.

What is Akira ransomware?

Akira is a ransomware gang that emerged in March 2023 and has earned over $42 million from attacks targeting SMEs.

Why didn’t KNP recover after the cyber attack?

The company was unable to access essential records, secure funding, or maintain operations post-attack.

What’s the lesson for other companies?

Basic cyber hygiene—especially strong passwords and MFA—must be enforced rigorously.

How common is password reuse among employees?

Studies show a high rate of password reuse, which increases vulnerability to credential stuffing and brute-force attacks.

Can one weak password really collapse a company?

Yes, especially if attackers gain access to critical systems and data, as seen in this case.

What tools can hackers use to guess passwords?

Password cracking tools can break 96% of common passwords in less than one second.

What is the role of MFA in preventing such attacks?

Multi-Factor Authentication (MFA) adds an extra layer of security, even if a password is compromised.

Are SMEs the main target for ransomware gangs?

Yes, because they often lack strong cybersecurity defenses compared to large enterprises.

What other UK companies have been attacked recently?

Major retailers like Marks & Spencer, Co-op, and Harrods have also suffered ransomware attacks.

What was the financial loss for M&S due to ransomware?

M&S reportedly lost around £40 million per week due to the DragonForce ransomware attack.

How does ransomware affect company funding?

It disrupts financial operations, making it hard to raise capital or continue transactions.

How long has KNP Logistics been in business?

The company operated for 158 years, dating back to 1865.

Was there any arrest in connection to these attacks?

UK authorities arrested four suspects involved in separate cyber attacks on retailers.

Can antivirus software stop ransomware?

It can help, but it’s not foolproof. Layered security and proactive monitoring are necessary.

How can companies detect ransomware early?

Real-time threat detection and anomaly-based monitoring tools are critical.

What are the signs of a ransomware attack?

Locked files, ransom notes, unusual file activity, and system lockouts are common indicators.

What should employees do to prevent ransomware?

Avoid phishing emails, use strong and unique passwords, and report suspicious activity.

What’s the average cost of a ransomware attack in the UK?

The average cost rose to £3.58 million between 2023 and 2024.

Is ransomware still increasing in 2025?

Yes, the frequency and sophistication of ransomware attacks continue to rise.

How can companies secure employee credentials?

Use strong passwords, MFA, and password managers, and conduct regular audits.

What happens if a ransom isn’t paid?

Companies may lose access to critical data, face financial ruin, or shut down.

Should businesses notify employees of their password compromise?

It’s debated, but transparency can help improve security culture.

What is the National Cyber Security Centre’s advice?

NCSC urges businesses to strengthen cybersecurity controls and monitor systems continuously.