One Password, 700 Jobs: The Collapse of a 158-Year Old Company
KNP Logistics Group had been moving goods across the UK for longer than you or your grandparents have been around. They had weathered world wars, recessions, and shifting markets over their lifetime, but last year the 158-year-old company fell victim to something it couldn’t recover from: a single, guessed employee password.
How It Happened
Hackers from the Akira ransomware group gained access to KNP’s internal systems by simply guessing a weak password. Once inside, they encrypted critical files, including backups and core systems, and demanded a ransom estimated at £5 million(5,826,400 USD).
The attack shut down operations overnight and with no clean backups, no access to essential systems, and customers moving to competitors, the business quickly unraveled. Within weeks, KNP went into administration, and approximately 700 jobs were lost.
The Takeaways for Every Business
While KNP’s size and age make the story stand out, the cause is far from unique. Weak or stolen credentials remain one of the most common entry points for cyberattacks. According to Verizon’s 2023 Data Breach Investigations Report, over 80% of breaches involve compromised passwords.
The lessons are clear:
- Stronger Password Practices – Enforce complexity requirements, avoid re-use, and encourage long passphrases instead of short, memorable passwords.
- Enable Multi-Factor Authentication (MFA) – Adding a second layer of verification stops most credential-based attacks cold.
- Secure Your Backups – Keep at least one offline or immutable copy to ensure ransomware can’t touch them.
- Test Your Response Plan – Run drills so your team can act quickly when the unexpected happens.
Insurance Isn’t Enough
KNP had cyber insurance, but coverage can’t restore lost customers, replace corrupted systems overnight, or save a business if operations are down for weeks. Cybersecurity isn’t just about meeting compliance standards; it’s about protecting your ability to function.
What Can You do?
KNP’s collapse is a reminder that no company, no matter how established, is immune to digital threats. The weakest point in your defenses might not be your firewall, your servers, or your software. It might be a single password. One of the best ways to counter this is to use MFA on login such as Duo that we have all our clients use here at Nevtec. This small additional security measure could have saved this company, and it can save you from a similar fate.
Don’t wait for a breach to reveal your weakest link. At Nevtec, we help businesses like yours implement simple but powerful protections, like Duo multi-factor authentication, that can stop credential-based attacks before they start. If you’re not sure where to begin, we’ll guide you. Click Here to schedule a security consultation and stay ahead of the next wave of cyber threats.
