One of the title industry’s main cloud-hosting providers has been sidelined by a ransomware attack, the company confirmed in an email to The Title Report.
One industry expert said the attack and subsequent blockage of Cloudstar’s system could create a national emergency on Monday because the company provides technology for hundreds of title companies and lenders.
Cloudstar said it has contacted law enforcement and does not know when its system will be accessible to customers.
“Cloudstar was recently the victim of a highly sophisticated ransomware attack. We have retained third-party experts to assist us in our recovery efforts and have also informed law enforcement,” Cloudstar President Christopher Cury told The Title Report.
“Due to the nature of this attack, at this time our systems are currently inaccessible, and although we are working around the clock, we do not have a definitive restoration timeline,” Cury said. “We will continue to investigate this incident and provide updates to our customers as we have additional information to share.”
Cloudstar operates five data centers throughout the United States, provides around-the-clock support to title professionals, and as a privately held company is not associated with any title company or law firm.
Sterbcow Law Group Partner Marx Sterbcow said the attack has the potential to create havoc throughout the industry on Monday if consumers are unable to close loans.
“Hopefully, the cloud-hosting company can get their ransomware issue resolved because if it’s not by Monday, we will have a national emergency in the real estate/lending/title industry because [a certain percentage] of the title industry will be unable to do any transactions,” Sterbcow tweeted.
Sterbcow said dual cloud hosting may become a requirement for title agencies to prevent industry-wide shutdowns because or ransomware attacks.
Please continue to check The Title Report’s website for updates. Additionally, please check October Research LLC’s other publications for reactions from key industry players.
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