MGM Resorts allegedly loses $100M due to cyberattack.
OAN’s James Meyers
3:24 PM – Friday, October 6, 2023
The recent cyberattack on multiple casinos across several states has left these establishments reeling, with losses amounting to millions of dollars.
In a regulatory filing on Thursday, MGM Resorts revealed that the cyberattack had cost the company over $100 million.
On September 10th, the attack forced MGM to shut down their casino and hotel computer systems nationwide in order to safeguard their data.
Customers in Las Vegas and other states experienced disruptions, with social media posts showing error messages on slot machines and long queues at hotels. The cyberattack finally came to an end on September 20th after a 10-day shutdown.
A hacking group known as AlphV claimed responsibility for the attack, allegedly collaborating with another group called Scattered Spider to breach MGM’s systems and steal data for extortion purposes.
“While we experienced disruptions at some of our properties, operations at our affected properties have returned to normal, and the vast majority of our systems have been restored,” reassured MGM CEO Bill Hornbuckle in a letter to customers. “We also believe that this attack is contained.”
Hornbuckle further stated that no customer bank account numbers or credit card information had been compromised. However, the hackers did manage to obtain other personal details such as names, driver’s license numbers, contact information, passport numbers, and Social Security numbers of some customers who had engaged with MGM prior to March 2019.
MGM has found no evidence of the hackers using this data for account fraud or identity theft. The company has reached out to affected customers via email, offering free identity protection and credit monitoring services. “We regret this outcome and sincerely apologize to those impacted,” added Hornbuckle.
Furthermore, MGM anticipates a negative impact of nearly $100 million on its adjusted property core profit for its Las Vegas division due to the breach. Occupancy rates for October are expected to be at 93%, compared to 94% in the same month last year.
The company, however, remains optimistic about the fourth quarter, with record results expected in November thanks to the Formula 1 racing event on the Las Vegas Strip.
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How does the MGM Resorts cyberattack highlight the need for organizations to prioritize cybersecurity and what measures is MGM taking to prevent similar incidents in the future
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The Devastating Cyberattack on MGM Resorts
The recent cyberattack on MGM Resorts has sent shockwaves throughout the industry, leaving the company and its customers grappling with its severe repercussions. With losses exceeding $100 million, this attack serves as a stark reminder of the importance of robust cybersecurity measures in the digital age.
The attack, which occurred on September 10th, prompted MGM to take immediate action by shutting down its casino and hotel computer systems nationwide. This decision was taken to ensure the protection of sensitive data and mitigate any further damage. As a result, customers in Las Vegas and various other states experienced disruptions, with reports of error messages on slot machines and long queues at hotels spreading like wildfire on social media.
After a relentless 10-day shutdown, the cyberattack finally ceased on September 20th. During this period, a hacking group known as AlphV collaborated with another group called Scattered Spider to breach MGM’s systems and steal data for extortion purposes. The targeted information included names, driver’s license numbers, contact information, passport numbers, and Social Security numbers of certain customers who had engaged with MGM prior to March 2019.
“While we experienced disruptions at some of our properties, operations at our affected properties have returned to normal, and the vast majority of our systems have been restored,” reassured MGM CEO Bill Hornbuckle in a letter to customers. “We also believe that this attack is contained.”
Hornbuckle emphasized that no customer bank account numbers or credit card information had been compromised. However, the breach of personal details is still a matter of concern. In response, MGM has taken swift action to address the issue, reaching out to affected customers via email and offering free identity protection and credit monitoring services. The company’s commitment to rectifying the situation is highlighted by Hornbuckle’s apology to those impacted by this data breach.
Aside from the reputational damage caused by the cyberattack, MGM anticipates a negative impact on its financial performance. The company expects a loss of nearly $100 million on its adjusted property core profit for its Las Vegas division. Occupancy rates for October are also projected to dip slightly, from 94% in the same month last year to 93% this year.
Nevertheless, MGM remains optimistic about the future, expressing confidence in the fourth quarter’s potential success. The Formula 1 racing event scheduled to take place on the Las Vegas Strip in November is expected to generate record-breaking results for the company.
Cybersecurity continues to be a top priority for organizations worldwide, as these attacks serve as stark reminders of the potential consequences of insufficient protection. The MGM Resorts incident underscores the need for constant vigilance and investment in cutting-edge security measures to safeguard sensitive data against ever-evolving cyber threats.
Moving forward, MGM Resorts has vowed to strengthen its cybersecurity protocols, collaborating with industry experts to prevent similar incidents in the future. By learning from this attack and implementing robust security measures, MGM aims to rebuild customer trust and ensure the safety of their personal information.
As cyberattacks become increasingly prevalent, it is imperative for organizations to remain proactive and prioritize cybersecurity. By investing in advanced technology, employee training, and regular security audits, companies can build a resilient defense system that can withstand even the most sophisticated cyber threats.
The MGM Resorts cyberattack serves as a wake-up call for both the industry and consumers alike. With cybersecurity breaches becoming more frequent and detrimental, it is crucial for everyone to remain vigilant, stay informed, and advocate for stronger security measures to protect our digital lives.
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