Rackspace Technology Inc., a cloud service provider, paid $10.8 million to remediate the effects of a significant hack that happened in December.
The majority of the monies, according to a statement from the business, were used to pay a global cybersecurity organization. The money was also used to hire more workers and provide legal assistance to people who were impacted.
Lawsuits are still being filed in San Antonio, Los Angeles, and New York. Despite the legal actions, according to official records supplied by Rackspace to the US Securities and Exchange Administration, the company won’t suffer significant financial damages. However, at this moment, it is hard to calculate prospective losses with any degree of accuracy.
The owners anticipate that a sizeable percentage of the incident’s expenses will be covered by cyber risk insurance.
37 customers from several US states who were unable to access their data during the assault filed a class action lawsuit, which a judge dismissed in favor of Rackspace in May.
Rackspace’s Resilience: From Breach to Bot, Pursuing Progress
A Play hacking gang was responsible for the attack, according to an internal probe. To get access to the Hosted Exchange network, the attackers employed a novel technique. They were able to access email exchanges, schedule calendars, task lists, contact books, and other data in PST (Personal Storage Table) files by exploiting the CVE-2022-41080 vulnerability.
Following the event, Rackspace’s market value dropped, reflecting a deterioration in investor trust. Financial forecasts for the long future have lost a lot of their optimism.
Management hasn’t lost hope despite the difficulties right now. A customized chatbot will be created by the corporation as part of a new artificial intelligence program to respond to consumer enquiries.
Amar Maletira, CEO of Rackspace, is optimistic since his team is on the correct road despite the obstacles. He stated:
“We are focused on long-term sustainable growth and the progress accomplished so far is already fairly considerable.”