The company's latest financial report isn't exactly a success, but it could get even worse…
Rackspace, a cloud hosting company, recently released information about significant financial losses associated with a ransomware cyberattack that occurred last year .
According to the company's report sent to the US financial regulator SEC, the total costs associated with last year's incident have already amounted to about $ 11 million. At the same time, insurance payments covered about half of this amount.
The attack on the IT provider, initially described as a "security incident", occurred on December 2, 2022 and affected Microsoft Exchange hosting services in Rackspace. As a result, the mail services of thousands of customers, mostly small and medium-sized enterprises, were disrupted.
Four days after the problems started, the company came to the conclusion that a ransomware infection was behind the failure. The email outages continued until January. As a result, Rackspace accused the Play group of hacking, pointing out that the attackers used the CVE-2022-41080 vulnerability in Exchange to attack.
Be that as it may, ongoing lawsuits can lead to even greater financial losses for the company. Rackspace declined to comment on its losses related to the ransomware, as well as active litigation.
"Rackspace Technology does not disclose information about ongoing legal proceedings, except as required in connection with our SEC reports," a company representative said in response to foreign media.
Rackspace, a cloud hosting company, recently released information about significant financial losses associated with a ransomware cyberattack that occurred last year .
According to the company's report sent to the US financial regulator SEC, the total costs associated with last year's incident have already amounted to about $ 11 million. At the same time, insurance payments covered about half of this amount.
The attack on the IT provider, initially described as a "security incident", occurred on December 2, 2022 and affected Microsoft Exchange hosting services in Rackspace. As a result, the mail services of thousands of customers, mostly small and medium-sized enterprises, were disrupted.
Four days after the problems started, the company came to the conclusion that a ransomware infection was behind the failure. The email outages continued until January. As a result, Rackspace accused the Play group of hacking, pointing out that the attackers used the CVE-2022-41080 vulnerability in Exchange to attack.
Be that as it may, ongoing lawsuits can lead to even greater financial losses for the company. Rackspace declined to comment on its losses related to the ransomware, as well as active litigation.
"Rackspace Technology does not disclose information about ongoing legal proceedings, except as required in connection with our SEC reports," a company representative said in response to foreign media.
