"Rackspace Ransomware Costs Soar to Nearly $12M"

According to financial disclosures filed over the past year, Rackspace Technology has continued to face expenses and losses in the aftermath of last year's December ransomware attack on one of its hosted Microsoft Exchange servers. Rackspace is a cloud computing services provider based in Texas that primarily serves small and medium-sized businesses (SMBs). A ransomware attack disrupted email services for thousands of its SMB customers on December 2, 2022, through the ProxyLogOn zero-day vulnerability, which it had not patched because of operational concerns with the update. According to Rackspace's 10-Q report, ransomware-related expenses had reached $3.2 million by March this year, including remediation costs, legal fees, and other professional services. A subsequent 10-Q filing with the Securities and Exchange Commission (SEC) revealed that the first-quarter expenses related to the cybersecurity incident were $1.7 million, and the second-quarter expenses were $4.9 million, bringing the total for recovery expenses to $6.6 million. In the company's latest 10-Q, another $5 million was added to the tally. This article continues to discuss Rackspace's ransomware attack costs.

Dark Reading reports "Rackspace Ransomware Costs Soar to Nearly $12M"

Submitted by grigby1