Rackspace Warns of Phishing Attempts Post Ransomware

Class Action Lawsuit Filed Against Rackspace for Negligence

Hosted services company Rackspace is warning customers about the increasing risk of phishing attacks following a ransomware attack causing ongoing outages to its hosted Exchange environment.

See Also: Finding a Password Management Solution for Your Enterprise

Texas-based Rackspace skilled a disruption in its Microsoft e-mail service servers that it at first described as a “safety incident” (see: Rackspace Hosted Exchange Still Offline Over Security Issue).

Later, the corporate mentioned in an update that it now believes the “suspicious exercise was the consequence of a ransomware incident.” The firm is at present engaged with cybersecurity agency CrowdStrike to analyze and put remediate measures in place, it mentioned in a Friday update.

“Due to swift motion on the Company’s half in disconnecting its community and following its incident response plans, CrowdStrike has confirmed the incident was rapidly contained and restricted solely to the Hosted Exchange Email enterprise,” the corporate mentioned.

Rackspace didn’t disclose any specific ransomware actor and it says, the incident has not affected Rackspace’s different companies.

Texas-based Rackspace is among the many world’s largest managed cloud suppliers, counting greater than 300,000 clients worldwide, together with two-thirds of the world’s 100 largest publicly traded companies.

In a filing with the Securities and Exchange Commission, the corporate mentioned the continued service disruption will prone to create a monetary loss for its Hosted Exchange enterprise, which generated roughly $30 million yearly in income.

Phishing Attacks

Rackspace warns about scammers and cybercriminals who might take benefit of the present state of affairs by pretending to be the help employees of Rackspace providing assist in transitioning to Microsoft 365 and get your e-mail again up and working.

“Emails from Rackspace will solely have the area title @rackspace.com with none particular characters or numbers and cellphone interactions with Rackspace help won’t embrace requests for login credentials, or private info equivalent to social safety quantity or driver’s license,” the corporate says.

The firm additionally shared an inventory of finest practices together with altering passwords in common intervals, using totally different passwords throughout private {and professional} accounts and monitoring banking account statements and credit score experiences for suspicious exercise.

Apart from staying vigilant, the corporate additionally recommends:

  • Do not open any suspicious e-mail attachments;
  • Do not click on on any suspicious hyperlinks;
  • Ensure acknowledge the sender and the e-mail area. Scammers will typically attempt to masks emails to look authentic. Be cautious of suspicious emails, together with these with typos or claims of “pressing request.”
  • Do not reply to a message from a person you don’t acknowledge. Please login to your management panel and create a ticket, together with particulars concerning the message you obtained.

Class Action Lawsuit

California-based Cole and Van Note final week introduced that it’s submitting a “class motion lawsuit towards Rackspace Technology, Inc. for negligence and associated violations arising out of the e-mail internet hosting supplier’s latest high-profile information breach.”

“Rackspace supplied opaque updates for days, then admitted to a ransomware occasion with out additional buyer help is outrageous,” says Scott Cole, the principal legal professional on the case. “Despite lots of of information breaches yearly on this nation, I’m receiving experiences of vulnerabilities in Rackspace’s internet hosting atmosphere that return over a yr.”

Cole additionally highlighted {that a} seeming lack of backup protocols is why a lawsuit like that is important.

In addition to financial damages, the go well with has additionally demanded Rackspace Technology implement and keep adequate safety protocols going ahead in order to stop future assaults.


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