A 158-year-old UK-based transportation company has collapsed after a devastating ransomware attack. The attack, which was triggered by a weakly-guessed password by an employee, encrypted and locked the company’s operational data, leaving it with no choice but to pay a ransom of up to £5 million ($6.74 million). The company, Knights of Old (KNP), has lost 700 jobs and around 500 trucks are currently off the road.
The attackers, known as “Akira,” gained access to KNP’s systems via the weak password, destroying all data backups, servers, and disaster recovery systems. According to experts, this was a worst-case scenario for cybersecurity. The company had taken out insurance against cyberattacks, but unfortunately, it did not cover ransomware demands.
Government officials have called for improved cybersecurity hygiene, suggesting measures such as banning public bodies from paying ransoms and enforcing private companies’ reporting of ransoms to the government. Regular independent cyber-audits are also proposed to ensure a minimum standard of cybersecurity.
The incident highlights the risks of weak passwords and the importance of proactive measures to prevent such attacks. As one commentator noted, “passwords are the single biggest drag on computer security.”
Source: https://www.tomshardware.com/tech-industry/cyber-security/158-year-old-company-forced-to-close-after-ransomware-attack-precipitated-by-a-single-guessed-password-700-jobs-lost-after-hackers-demand-unpayable-sum