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Where millions go-investigation of the consequences of a cyberattack.
Cloud provider Rackspace Technology Inc. spent $10.8 million to fix the consequences of a large-scale cyber attack that occurred in December last year.
According to the company, most of the funds were used to pay for the services of an international cybersecurity firm. In addition, the funds were spent on legal support and additional staff who helped the victims.
People continue to file lawsuits in San Antonio, Los Angeles, and New York. Official documents provided by Rackspace to the US Securities and Exchange Administration indicate that, despite legal claims, the firm will not suffer serious financial damage. However, it is currently impossible to accurately assess potential losses.
The owners expect that a significant part of the costs associated with the incident will be covered by cyber risk insurance.
In May, the court ruled in favor of Rackspace, rejecting a class-action lawsuit by 37 payers from different US states who lost access to their data during the attack.
An internal investigation revealed that a hacker group called "Play"was behind the attack. Attackers have used a new method to break into the Hosted Exchange network. Exploiting the vulnerability under the identifier CVE-2022-41080, they gained access to email correspondence, calendar schedulers, task lists, address book, and other data in PST files (Personal Storage Table).
After the incident, the market value of Rackspace declined, which signals a loss of confidence on the part of investors. Long-term financial forecasts have become much less optimistic.
Despite the current difficulties, the management is still optimistic. The company launched a new initiative in the field of artificial intelligence, having decided to develop its own chat bot for processing customer requests.
Amar Maletira, CEO of Rackspace, is confident that despite all the difficulties, his team is on the right track. "The progress made to date is already quite significant, and we are focused on long — term sustainable development," he said.
Cloud provider Rackspace Technology Inc. spent $10.8 million to fix the consequences of a large-scale cyber attack that occurred in December last year.
According to the company, most of the funds were used to pay for the services of an international cybersecurity firm. In addition, the funds were spent on legal support and additional staff who helped the victims.
People continue to file lawsuits in San Antonio, Los Angeles, and New York. Official documents provided by Rackspace to the US Securities and Exchange Administration indicate that, despite legal claims, the firm will not suffer serious financial damage. However, it is currently impossible to accurately assess potential losses.
The owners expect that a significant part of the costs associated with the incident will be covered by cyber risk insurance.
In May, the court ruled in favor of Rackspace, rejecting a class-action lawsuit by 37 payers from different US states who lost access to their data during the attack.
An internal investigation revealed that a hacker group called "Play"was behind the attack. Attackers have used a new method to break into the Hosted Exchange network. Exploiting the vulnerability under the identifier CVE-2022-41080, they gained access to email correspondence, calendar schedulers, task lists, address book, and other data in PST files (Personal Storage Table).
After the incident, the market value of Rackspace declined, which signals a loss of confidence on the part of investors. Long-term financial forecasts have become much less optimistic.
Despite the current difficulties, the management is still optimistic. The company launched a new initiative in the field of artificial intelligence, having decided to develop its own chat bot for processing customer requests.
Amar Maletira, CEO of Rackspace, is confident that despite all the difficulties, his team is on the right track. "The progress made to date is already quite significant, and we are focused on long — term sustainable development," he said.
