Title: MGM Resorts Confirms Cyberattack Costing Over $100 Million
Subtitle: Caesars Entertainment also affected by cyberattack; Scattered Spider claims responsibility
MGM Resorts, one of the major players in the Las Vegas strip, has revealed that the cyberattack it experienced in September will have a financial impact of at least $100 million. The attack, which compromised the personal data of its customers, is expected to significantly affect the company’s third-quarter earnings and continue to have some impact in the fourth quarter, albeit minimal.
The resort and casino giant has already incurred approximately $10 million in one-time expenses related to the cyberattack. These costs include legal and consultancy fees, as well as engaging third-party experts. However, the full extent of the financial repercussions is still being determined.
Fortunately, MGM Resorts expects its cyber insurance policy to cover the majority of the financial losses stemming from the attack. The company is also optimistic about the recovery of its business, with room occupancy levels expected to return to near-normal starting this month. October’s occupancy is only predicted to be down by 1 percent, while November is anticipated to deliver record-setting numbers.
MGM Resorts has diligently worked to restore most of its guest-facing systems and aims to bring the remaining impacted systems back online in the coming days. While personal data, including social security numbers, driving license numbers, and contact details, was stolen during the cyberattack, the company assures that financial information and passwords remain unaffected.
In an unfortunate turn of events, rival casino operator Caesars Entertainment has also fallen victim to a cyberattack during the same period. The attack on Caesars resulted in the theft of data related to social security and driving license numbers.
MGM Resorts has already notified affected customers and is offering them free credit reports and identity protection services. The cybercrime group known as Scattered Spider has claimed responsibility for the attack on MGM Resorts and has been linked to other cyberattacks in the past. Mandiant, an incident response company, has identified Scattered Spider and connected the group to the Okta attack last year.
While it remains unclear if ransomware was involved in the attack on MGM Resorts, the company has chosen not to provide specific details about the nature of the cyberattack. As investigations continue, the company emphasizes its commitment to safeguarding customer data and ensuring the highest level of cybersecurity moving forward.
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