A devastating cyber attack by Russian hackers has led to the collapse of KNP, a prestigious British logistics company with roots dating back to 1865. The attack, orchestrated by the notorious Akira ransomware group, resulted in 730 redundancies and the loss of a business that had survived two world wars.
Paul Abbott, the former group director and co-owner, revealed the chilling details of how the attack unfolded. The initial ransom note demanded between $2.7 million and $5.3 million in cryptocurrency, threatening to publish sensitive information on the dark web if payment wasn’t made.
Despite having cybersecurity insurance worth £1 million and international data security accreditation, the company’s defences were breached through a simple weak password. The hackers gained access through a “brute force” attack, highlighting the critical importance of multi-factor authentication, which the company had not implemented.
The most significant blow came from the loss of all financial data, leaving KNP unable to provide necessary assurances to its banking partners for extended credit. The insurance payout of £250,000 covered initial costs, but proving additional expenses became impossible with the finance system compromised.
Tim Erridge from Palo Alto Networks notes a disturbing trend where hackers are becoming increasingly sophisticated, sometimes spending months inside systems before striking. This particular attack effectively destroyed a company that managed 400 lorries and handled approximately 50,000 pallets for major clients including Penguin Random House.
The collapse of KNP serves as a stark warning to other businesses about the evolving nature of cyber threats. Abbott, now working as a cybersecurity consultant, emphasises the importance of placing cybersecurity at the top of board agendas and engaging with specialist expertise rather than relying on off-the-shelf solutions.
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