Ransomware Attack May Jeopardize Some Closings
Cloudstar, a cloud service used by many title companies, shut down after a ransomware attack last week. As a result, some brokers now can’t register transactions or closings. “We are still very much in the containment and remediation phase,” the company says.
NEW YORK – Cloudstar, one of the largest cloud services in title services, remains offline after a ransomware attack last week. Cloudstar is a cloud-based hosting service that provides support to more than 42,000 title and settlement professionals across the country. The attack and resulting outage could delay some real estate transactions.
Cloudstar’s main user base is in the real estate and title industry, and the ransomware attack has prevented some real estate brokers from registering transactions and property closings, according to media reports.
Last week, the company announced it had been hit by a “highly sophisticated ransomware attack” that forced it to halt most of its services, and many of those services are still offline. The company is maintaining a status page for the latest updates. The company’s July 20 update said it was working with third-party experts to investigate the scope of the attack and identify which of its systems were impacted by the malware.
“We are still very much in the containment and remediation phase,” the company notes. “As soon as we have a definitive timeline to share in terms of when we will be back up and running, we will do so.”
In the meantime, the American Land Title Association reports that several software vendors and title companies are stepping in to offer services to help keep real estate deals on track for closing.
Source: mycloudstar.com; “Ransomware Incident at Major Cloud Provider Disrupts Real Estate, Title Industry,” The Record (July 19, 2021); “Closings in Jeopardy as Cloud-Hosting Vendor Suffers Ransomware Attack,” American Land Title Association (July 18, 2021)
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