It’s the kind of headline that shouldn’t be possible. Yet, a single compromised password contributed to the demise of KNP Logistics – wiping out 700 jobs and ending the 158-year legacy of a UK freight giant.
This wasn’t an isolated incident. It’s a stark illustration of a broader trend: a threat landscape that continues to outpace conventional cyber security practices, and organisations that dangerously overestimate the effectiveness of outdated defences.
For security teams and business leaders alike, this is a clear warning: a single oversight can now tip an already vulnerable business into total operational collapse.
Ransomware: Simple, but Deadly
In KNP’s case, attackers didn’t exploit advanced zero-days or deploy nation-state tooling. They guessed an employee’s password.
From there, the Akira ransomware group moved quickly, encrypting mission-critical data and demanding a ransom reportedly close to £5 million. Without robust backups or proven recovery mechanisms, the company simply couldn’t recover.
Yet, it’s important to understand that KNP wasn’t a healthy business undone solely by ransomware. According to Raj Mittal, joint administrator from FRP Advisory: “Against a backdrop of challenging market conditions and without being able to secure urgent investment due to the attack, the business was unable to continue.”
Still, the root cause – a guessed password – speaks to a much larger and preventable issue.
As Craig Rozenski, Principal Threat Intelligence Analyst at NormCyber, notes:
“Despite ongoing cyber security awareness campaigns, we continue to see a staggering number of users employ the same password across multiple platforms – often using work email addresses on recreational or educational sites that are prime targets for cyber attacks.
Even more troubling is the prevalence of weak, easily guessable passwords, like names of people or pets, or lazy sequences like ‘123’. These predictable patterns, along with the reuse across multiple accounts, create massive vulnerabilities that ransomware groups are all too ready to exploit.”
This isn’t just a KNP problem. It’s a widespread failure of cyber hygiene that threat actors count on – and which businesses can no longer afford to ignore.
Security by Checkbox: Why Compliance Isn’t Enough
KNP reportedly adhered to industry standards and held cyber insurance. But when it mattered, these didn’t prevent operational failure.
Compliance frameworks like Cyber Essentials or ISO 27001 can be valuable benchmarks, but they don’t measure real-world readiness. They don’t tell you whether your SOC can stop exfiltration in progress, or if your backup strategy works under pressure.
Modern ransomware groups operate with speed, automation, and evolving playbooks. Defence must be continuous, intelligence-led, and rooted in operational realism.
Six Principles for a Ransomware-Resilient Security Operation
1. Assume Breach and Prove Otherwise
Stop asking “How do we keep attackers out?” Start asking: “How quickly can we detect and contain them once they’re in?”
This mindset shift is foundational to cyber resilience. It demands practical validation:
- Red and Purple Teaming: Simulate real-world attack scenarios, mirroring ransomware tactics, techniques, and procedures (TTPs).
- Incident Response Simulations: Pressure-test your organisation’s crisis response.
- Threat Hunting: Look beyond automated alerts and search for subtle signs like scheduled task abuse, lateral movement paths, or credential harvesting.
2. Eliminate Passwords from the Kill Chain
Password compromise remains the #1 initial access vector for ransomware.
The KNP breach (like many others) likely began with reused or weak credentials. As Craig Rozenski highlights: “The sheer predictability of passwords, combined with reuse across multiple accounts, dramatically amplifies the risks of data breaches and unauthorised access.”
To break this pattern:
- Enforce MFA across all systems, especially VPNs and admin interfaces. No exceptions.
- Adopt Passwordless Authentication (e.g., FIDO2 keys, biometrics) for high-value users and systems.
In one NormCyber client case, replacing domain admin credentials with hardware security keys broke a ransomware chain mid-stage, stopping the attacker from escalating privileges and moving laterally.
3. Build a Security Culture That Mirrors Attacker Tactics
Generic phishing training is obsolete. Today’s threats include:
- Deepfake voice calls
- MFA fatigue
- Helpdesk impersonation
Solutions must reflect these evolving tactics:
- Attack Simulation Workshops tailored to each business unit
- Tabletop Exercises that explore non-technical vectors like insider risk and social engineering
4. Prioritise Real-Time Detection and Containment
Ransomware operators can encrypt an entire domain in under 90 minutes. Your Security Operations Centre (SOC) – inhouse or external – must be:
- Real-time and behaviour-driven
- Automated, with playbooks to isolate hosts, disable accounts, and block C2 activity
- 24/7, across cloud, on-prem, and hybrid environments
5. Make Resilience Measurable
Controls are only as strong as their weakest implementation:
- Use Immutable Backups (e.g., AWS S3 with object lock, air-gapped storage)
- Conduct Routine Restore Simulations aligned with RTO/RPO goals
- Deploy Continuous Exposure Management to spot exploitable misconfigurations – not just patchable CVEs
A manufacturing client believed their backups were ransomware-proof – until a red team exercise revealed backup credentials stored unencrypted on a compromised endpoint.
6. Instil a Cyber-MOT Culture
Security is not static. Like a vehicle, it needs regular check-ups:
- Annual Penetration Testing that includes lateral movement and recovery scenarios
- Cyber Risk Quantification to map vulnerabilities to business risk
- Board-Level Reporting focused on effectiveness, not tool counts
A Preventable Catastrophe
KNP’s collapse wasn’t the result of sophisticated malware. It was a fundamental security failure, exacerbated by market fragility.
And the same conditions – flat networks, poor detection, credential misuse – exist in countless businesses today.
Ransomware isn’t just an IT issue. It’s a strategic risk to operations, reputation, compliance, and customer trust. Yes, KNP was already in difficulty. But the breach sealed its fate.
For others, the lesson is clear: cyber resilience is not optional. The businesses that treat it as a differentiator – not just a cost – are the ones that will endure.
