Security News > 2022 > December > Rackspace Hosted Exchange outage was caused by ransomware

Rackspace has finally confirmed the cause of the ongoing outage of its Hosted Exchange service: it's ransomware.

"As you know, on Friday, December 2nd, 2022, we became aware of suspicious activity and immediately took proactive measures to isolate the Hosted Exchange environment to contain the incident. We have since determined this suspicious activity was the result of a ransomware incident," the company stated in the newest released service announcement.

The confirmation came just a few hours after the publication of a press release on the situation, in which Rackspace said the security incident "May result in a loss of revenue for the Hosted Exchange business, which generates approximately $30 million of annual revenue in the Apps & Cross Platform segment," and that they expect to have "Incremental costs associated with its response to the incident."

Rackspace is working on mitigating the fallout of the ransomware incident for customers.

Rackspace has offered affected customers a free Microsoft Exchange Plan 1 license on Microsoft 365, and has using a growing support team to help them migrate their users and domains to that service and to reconfigure their DNS for their domain to complete the migration.

"At this time, we are unable to provide a timeline for restoration of the Hosted Exchange environment," Rackspace shared.

News URL

https://www.helpnetsecurity.com/2022/12/06/rackspace-ransomware/