back arrow
Back to all blogs

Devastating Ransomware Attack on Rackspace: What Executives Need to Know

December 13, 2022

Ransomware Attack on Rackspace

On December 2nd, a devastating ransomware attack on Rackspace shook the world of business. This attack was significant not only because of the amount of data compromised but also because it highlighted just how vulnerable companies can be to cyber threats. The good news is that there are steps companies can take to prevent similar attacks from occurring. Let’s take a closer look at what happened and how your company can use this example as a lesson in cybersecurity protection.

Devastating Ransomware Attack on Rackspace

It was a dark day for many San Antonio tech-savvy customers who had come to love the Hosting startup that three Trinity University students founded in 1998, backed by real estate giant Graham Weston. In the early morning hours of December 2nd, it all came crashing down without warning with mysterious “security incidents” wiping out their emails accounts and evasive executives giving no answers why.

As the days slowly passed, it became clear something was terribly wrong. On Tuesday, finally news came that a ransomware attack had crippled the company – but this wasn’t all they faced – a hefty $30 million bill and multiple lawsuits were filed in its wake too. Worst yet may be revelations of permanent loss email archives for customers due to what could be long-term impacts from such an attack.

What Happened?

On December 2nd, Rackspace was thrown into a tailspin after being hit by a ransomware attack. This isolated incident rendered its Hosted Exchange implementations completely inoperable and has disrupted email services across the organization.

The attack, which was carried out by a group of highly skilled hackers, targeted Rackspace’s servers and encrypted all of the data stored on them. This effectively rendered the servers useless, and left the company with no choice but to shut down its email services until the issue could be resolved.

In the aftermath of the attack, many companies were left scrambling to find alternative solutions for their email needs. Many of them turned to other providers, such as Microsoft’s Office 365, which offers robust security measures and a reliable email platform.

But the question on many people’s minds is: could this attack have been avoided? And the answer, unfortunately, is yes.

One year ago, there were clear signs that Rackspace was at risk of a ransomware attack. The company had been experiencing a number of security breaches, and many experts were urging businesses to move away from their services and switch to a more secure provider.

Despite these warnings, however, Rackspace continued to operate as usual, and the attack ultimately occurred. This serves as a reminder of the importance of taking cybersecurity seriously, and of regularly reviewing and updating your security measures.

rackspace ransomware attack
How To Prevent It?

The most important thing businesses can do to avoid a similar fate is to ensure they have comprehensive security measures in place. This includes regularly updating software, encrypting data, and using strong passwords for all accounts and devices connected to the network. Additionally, businesses should also invest in employee training programs so that employees understand how to identify potential threats and know what steps to take if they suspect something is wrong with their networks or systems.

It’s also essential for companies to have reliable backup systems in place so that if something does happen—whether it’s an internal mistake or an external hack—they are able to quickly restore any lost files or data without too much disruption or downtime for their operations. Finally, businesses should consider investing in cyber insurance policies so that they have some financial protection if they ever fall victim to a successful attack like this one did at Rackspace.

Where To Go From Here

If you are currently using Rackspace for your email needs, it is strongly recommended that you migrate to a more secure provider, such as Microsoft 365. Microsoft 365 offers advanced security features, such as encryption and multi-factor authentication, to protect your data from cyber attacks.

In addition to its security features, Microsoft 365 also offers a number of benefits for businesses. These include access to the latest version of Microsoft 365, as well as a range of tools and services for collaboration and communication.

Overall, the Rackspace ransomware attack serves as a stark reminder of the importance of staying vigilant when it comes to cybersecurity. By migrating to a secure provider like Microsoft 365, businesses can protect themselves from similar attacks in the future, and enjoy the many benefits of using a modern, cloud-based email platform.

Lean on the Security Experts

Cybersecurity is no joke. With the growing number of cyber threats, it’s essential that companies invest in a security-first solution provider to protect their confidential data and operations. Finding a quality security-first solution provider is essential if you want to protect your company’s data and operations from cyber threats. Need guidance on finding the perfect security provider for your business? Our team is standing by to assist you in making an informed decision. Reach out today – let’s get started!

Kelly Kercher headshot
Kelly Kercher
President and Founder
Book a Call Today!