Home Ransomware forces large logistics firm to close

Ransomware forces large logistics firm to close

September 28 – In the U.K., one of the largest privately held logistics firms, KNP Logistics Group, has declared itself under financial duress to the point of insolvency, blaming a ransomware attack.

Roughly 730 employees will be dismissed as a result of the ensuing legal processes, although one of the group’s key entities has been sold, saving roughly 170 jobs.

What happened?

According to administrators, the ransomware attack affected KNP’s critical systems, processes and financial data. In turn, this adversely impacted the firm’s ability to secure additional investments and funding.

In June, KNP Logistics Group saw its name added to the Akira ransomware gang’s list of victims. In July, cyber security researchers publicly released a decryptor for the Akira ransomware, offering promise and possibility to dozens of victims. Prior to that point, the decryptor had been circulated privately among incident respondors.

Whether or not KLP Logistics would have been able to effectively use the decryptor, had the business obtained access to it, remains unknown. 

Keeping quiet

A company spokesperson did not respond to a media inquiry about whether or not KLP had contacted law enforcement or requested the assistance of an external incident response team in the wake of the incident.

The U.K.’s National Cyber Security Centre and the Information Commissioner’s Office (ICO) have expressed concern about the fact that ransomware victims appear to be keeping incidents concealed from both law enforcement and regulators.

Ransomware impact

Ransomware attacks reached record-highs last year. In the U.K. alone, data belonging to more than 5.3 million people, from over 700 different organizations, was compromised.

While official figures have not yet emerged for 2023, the U.K’s security minister, Tom Tugendhat, recently stated that the U.K remains as a top target for cyber criminals, and that hacker initiatives are liable to cost taxpayers millions.

“Ransomware is one of the most significant cyber threats facing the U.K. and attacks can have far-reaching impact,” says the NCSC.

More insights into this story here. Lastly, to receive timely cyber security insights and cutting-edge analyses, please sign up for the cybertalk.org newsletter.