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Rackspace Confirms Play Ransomware Gang Was Behind Recent Breach

Cloud services provider Rackspace confirmed on Thursday that the Play ransomware gang was responsible for the breach last month.

The security incident that occurred on 2 December 2022 exploited a previously unknown security flaw to gain initial access to the Rackspace Hosted Exchange email environment.

“CVE-2022-41080 is associated with this zero-day exploit,” the Texas-based company said. “Microsoft disclosed CVE-2022-41080 as a privilege escalation vulnerability without noting that it was part of an exploitable remote code execution chain.”

Rackspace’s forensic investigation revealed that the threat actor accessed the Personal Storage Table (.PST) files of 27 out of nearly 30,000 customers on the Hosted Exchange email platform.

However, according to the company, there is no evidence that the adversary viewed, abused, or distributed emails or data from the customer’s storage folders. As part of a planned migration to Microsoft 365, it stated that it intends to retire its Hosted Exchange platform.

It is currently unknown whether Rackspace paid a ransom to the cybercriminals, but the disclosure follows a report from CrowdStrike last month that shed light on the Play ransomware actors’ new technique, dubbed OWASSRF.

The mechanism targets Exchange servers that have URL rewrite mitigations for the Autodiscover endpoint but are unpatched for the ProxyNotShell vulnerabilities (CVE-2022-41040 and CVE-2022-41082).

This involves an exploit chain consisting of CVE-2022-41080 and CVE-2022-41082 to bypass the blocking rules for remote code execution via Outlook Web Access (OWA). Microsoft addressed the vulnerabilities in November 2022.

In a statement provided to The Hacker News, Microsoft urged customers to prioritize the installation of its November 2022 Exchange Server updates and noted that the reported method targets vulnerable systems that have not received the latest patches.

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