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From Weak Password to Full Shutdown: The KNP Logistics Ransomware Collapse

Written by Ken McBean | Jul 21, 2025 9:29:43 PM
A cautionary tale of what happens when MFA is skipped, backups aren’t segmented, and response plans are untested.
What Happened

In June 2023, UK-based KNP Logistics—formerly Knights of Old—was hit with a crippling ransomware attack by the Akira gang. Their entry? A single weak password with no multi-factor authentication (MFA) barrier.

Once inside, the attackers encrypted key systems across operations and finance. Without segmented backups or an active incident response plan, KNP was left exposed. They refused to pay the ransom, leading to complete system lockout and financial collapse.

The Fallout

  • 💥 Operations halted within days

  • 📉 Financial records lost, damaging lender trust

  • ❌ Cyber insurance covered response, not full recovery

  • 🧨 Company entered administration by September

  • 👥 ~730 jobs lost

  • 🏚️ 158 years of business, gone in under 90 days

The Root Cause
  • Weak password access point

  • No MFA policy in place

  • Backups not segmented or offline

  • No tested incident response plan

Lessons That Shouldn’t Be Learned the Hard Way
🔐 MFA Is Non-Negotiable

It’s not a “nice-to-have”, it’s a baseline control. Every login path should have strong, enforced multi-factor authentication.

📦 Backups Must Be Segmented and Offline

Backups are useless if they’re compromised in the attack. Segment and isolate them; test restoration regularly.

🧪 Response Plans Shouldn’t Be Theoretical

If your team hasn’t practiced your incident response plan in the last 6 months, assume you’re not ready. Simulation matters.

🚫 Cyber Insurance Isn’t a Shortcut

Carriers are cracking down on poor hygiene. Weak controls = denied claims or insufficient payouts.

How BACKSTOP Helps You Avoid the Same Fate

BACKSTOP helps you identify and close these gaps before they become breaking points:

  • Centralized control monitoring

  • Framework-based risk tracking

  • Control status checks

  • Incident readiness assessments

  • Visual dashboards for leadership

Let’s make sure your controls are more than a checklist—they’re your frontline defense.