Ransomware in the UK: Scope, Impact and Policy Response

According to the UK government's Cyber Security Breaches Survey 2025, around 1% of all UK businesses experienced a ransomware crime in the past 12 months. That translates to an estimated 19,000 organisations affected in 2025. 

Ransomware is a type of malicious software that blocks access to files or entire systems by locking and encrypting them. Victims are then pressured to pay a ransom, usually in cryptocurrency, to regain access. These attacks often begin with a phishing email, a compromised remote access point, or infected software update.  

Once inside, the malware spreads across the network, locking data and sometimes stealing it before issuing demands. Ransomware affects organisations of all sizes, frequently disrupting operations, leaking confidential information and leading to costly recovery efforts. 

Attackers now customise payloads for specific sectors, often using multi-staged extortion tactics. They encrypt data, steal it and threaten public release or deletion if demands are ignored.  

A report by Check Point Research, revealed that in the first quarter of 2025 alone, 2,289 victims were publicly named by ransomware groups, showing a 126 percent increase compared to last year. 

The UK government responded in June with new legislation “Government Response: Ransomware Proposals (PDF)”. Public sector organisations are now prohibited by law from paying ransomware demands. NHS trusts, councils and schools must report incidents and depend on offline backups and recovery plans. The goal is to cut off funding to criminal groups, but some experts warn that without stronger defences, services will stay vulnerable. 

Stay safe from ransomware: 

• Use strong, unique passwords and enable two-factor authentication 

• Keep systems and software updated to patch security flaws 

• Be cautious with emails, links, and attachments from unknown sources. 

• Back up important data often and store it securely offline or in the cloud. 

• Develop and rehearse an incident response plan with clearly defined roles and contact protocols. 

• Provide regular Cyber awareness training on identifying and avoiding ransomware threats. 

If You’re Hit by Ransomware: 

• Disconnect infected devices from the network immediately 

• Report the incident to your IT or security team and relevant authorities 

• Restore data using verified, clean backups only 

• Save logs and other details to help with investigation and recovery 

The Akira Attack: How ransomware finished KNP Logistics: 

KNP Logistics shut down suffering a ransomware attack in June 2023 that locked its entire IT infrastructure. Conflicting reports suggest that the attack occurred in 2025, However company records reveal that KNP logistics has been in administration since 2023.  

The company, in operation since 1867, relied on outdated cybersecurity measures. A weak password used by a senior employee gave the Akira ransomware group full access to the network as there was no multi-factor authentication in place. Once inside, the attackers encrypted key systems and demanded a ransom of £5 million. 

In response to the attack, the company disconnected affected systems, hired cybersecurity experts, and attempted to negotiate with the Akira group. Despite paying a ransom in cryptocurrency they were deceived by the hackers and sent obsolete encryption keys.   

The scope of the attack meant that the company couldn’t process deliveries, access customer information, or retrieve financial records. Clients began pulling out, cyber insurance coverage was insufficient, and backup systems were either compromised or ineffective. With its operations frozen and no recovery plan in place, KNP entered administration in September 2023. 

As a result, around 730 employees lost their jobs. Director Paul Abbott later said he never told the employee whose password had been compromised by the hackers.  

Lessons learned:  

• Weak passwords can be catastrophic. Easily guessable employee passwords can allow full access to the company’s network. 

• Legacy systems increase risk. Outdated infrastructure made it easier for attackers to exploit vulnerabilities. 

• A missing incident response plan leads to chaos. KNP had no structured way to contain, recover, or communicate following the breach 

• Never pay the ransom to the attacker. It has been made recently illegal for public sector organisations to pay ransoms.   

• Cybersecurity should be a top-level priority. The scale of operational and reputational damage shows it must be treated as a strategic concern 

• Transparent communication matters. Misreporting and speculation can result in more confusion and misinformation. 

• Multi-factor authentication is essential. Strong passwords alone are not enough, MFA can block access and even notify the user, if their password is used by the hacker.

Final thoughts: 

Ransomware continues to present a significant threat to UK organisations, with thousands affected in the past year alone. The incident involving KNP Logistics illustrates the operational and financial consequences of inadequate cybersecurity practices.  

Weak passwords, outdated infrastructure and a lack of response planning allowed attackers to disable critical systems and force the business into administration. 

While recent legislation aims to limit the ability of public institutions to fund criminal activity, it places more pressure on organisations to prevent breaches in the first place.  

Key measures such as multi-factor authentication, secure backups and regular patching remain essential. A clear reporting structure and defined recovery plan are also critical.  

Organisations must take steps to reduce their exposure, improve internal resilience and limit the fallout of future attacks. 

At Data Privacy Simplified, we help organisations strengthen their data security, navigate regulatory requirements, and implement effective protection measures. For more information on how we can help improve your organisations data and cyber security posture visit our website, https://www.dataprivacysimplified.co.uk/, and feel free to drop us an email at  enquiries@dataprivacysimplified.co.uk. Let’s work together.