MGM Cyberattack To Cost the Company $100 Million
LISTEN TO THIS ARTICLE:MGM Resorts International disclosed new information on Thursday regarding the aftermath of a recent cyberattack, revealing that its operations had been significantly disrupted. The incident has resulted in an estimated $100 million loss for the company, with the priority now being the restoration of its systems.
MGM Bottom Line Suffers
MGM, a major player in the global gambling industry, reportedly took swift action by suspending its operational systems upon detecting the malicious incursion. The motive was to limit the potential harm inflicted by the intrusion, as per a statement from a company representative.
Furthermore, MGM anticipates that the resulting costs attributable to this incident, exclusively confined to the third quarter prior to September 30, would not exceed $10 million. Following the attack that occurred in September, patrons flooded social media platforms with photographs depicting altered messages on slot machines located within various Las Vegas dining establishments.
Related: MGM, Caesars Cyberattacks Lead to Class-Action LawsuitsMGM successfully evaded the cyberattackers' demands of a ransom in exchange for regaining control over their systems and retrieving their sensitive information. Consequently, the company remained compromised and lost operations for a significant number of days.
Caesars Entertainment was also a target of hackers who demanded a ransom. Unlike MGM, however, it paid an unspecified amount to restore its systems.
MGM stated that the hackers were unsuccessful in acquiring any financial information of their customers, such as bank account details or payment card data. Furthermore, it stated that no data from the Cosmopolitan of Las Vegas was compromised or disclosed.
The total expenses and consequences resulting from this incident are yet to be assessed, MGM added in an official submission to regulatory authorities. MGM anticipates a decline in their overall rate for the month of October, dropping to 93% compared to the usual rate of 94% during this time of year.
Massive Data Loss
The breach at MGM involves a cyberattack orchestrated by a hacking group called AlphV, according to reports. It is alleged that AlphV collaborated with a company named Scattered Spider to infiltrate MGM's systems and steal data with the intention of extorting the company.
MGM disclosed that the sensitive information of their clients who used its services pre-March 2019 had been compromised. The data breach includes personal details such as contact information, gender, date of birth, and driver's license numbers. Additionally, the company has stated that it is also possible that the hackers accessed "a limited number" of Social Security numbers and passport numbers.
The FBI is currently examining the data breaches, serving as a glaring demonstration of how cybercrime can exploit the susceptibility of extensive organizations. Experts who have probed into Scattered Spider reveal that numerous businesses are succumbing to the group's cunning social engineering tactics.
Gateway Casinos also faced a setback during the summer when a hack occurred. It temporarily closed down the Ontario gaming industry for two weeks.
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