Established in 1998, Rackspace is a well-known supplier of managed hosting and cloud computing services. The company helps businesses of all sizes develop, maintain, and grow their IT infrastructure by providing various services, such as managed hosting, private clouds, and public cloud environments.
The firm has a network of data centers worldwide and provides multiple services to assist businesses in swiftly deploying and managing their IT infrastructure. As with any other provider of managed hosting and cloud computing services, Rackspace faces many security concerns and difficulties. External dangers like hacking and cyberattacks might be among them.
The recent ransomware attack on Rackspace exposed the weakness of the cloud. Many of the firm’s customers are upset and have even filed lawsuits against the corporation after a phishing attack followed the ransomware attack. Many believe that the business handled the security concerns poorly and failed to tell the customers of the risks.
Rackspace, a cloud computing service, alerted clients to an increase in the risk of phishing attempts following a ransomware strike on its hosted Microsoft Exchange environment. Although the organization is still determining the extent of the damage, they have issued a warning that opportunistic hackers may try to take advantage of this. Rackspace said:
“If you do receive a message from an individual you do not recognize, do not reply. Please login to your control panel and create a ticket, including details about the message you received.”
Customers were urged to be alert and keep a close eye on their credit reports and banking account statements for any unusual behavior, even though the company has not yet confirmed whether any data was taken from its servers during the hack. Numerous clients have noticed an increase in phishing emails that aim to profit from the ransomware outbreak. Customers of Rackspace impacted by the attack are advised not to open email attachments or click on any odd or inappropriate links.
Since Friday evening, Rackspace has offered Microsoft Exchange Plan 1 licenses and comprehensive instructions on how to transition to Microsoft 365 to its impacted clients. Additionally, as a temporary fix throughout the conversion process, a forwarding option is offered that instantly sends every email sent to a Hosted Exchange user to an outside email address.
Rackspace has a variety of security procedures and policies in place to reduce these risks and guarantee the security of its services. These include technological and physical security measures, such as firewalls and intrusion detection systems, as well as monitoring and access control. Additionally, Rackspace has a group of security professionals in charge of administering and keeping an eye on the network and system security for the business. This staff is available around-the-clock to respond to security events and assist clients with any security-related problems they may be experiencing.
It is crucial to remember that no system is 100% safe, and security incidents or breaches are always a possibility. Despite these safeguards, consumers are suing Rackspace for failing to disclose that the security incident involving Hosted Exchange was a ransomware attack. Additionally, they are charged with failing to take the necessary precautions to safeguard client data and for the detrimental effects of email service outages on businesses employing their service. This class-action lawsuit claims that the proposed class consists of more than 100 people and is seeking over $5 million in damages. Regarding the case, Rackspace opted not to comment.