Summary:
- MGM Resorts’ computer systems were down for several days.
- An additional one-time loss of $10 million is also expected.
- Slot machines and hotel stays were among the affected services.
Cyberattacks are more prevalent today than decades ago as technology has changed, and cybercriminals are well-versed in attack methods.
For the past two months, news about an attack against Caesars Entertainment and MGM Resorts has surfaced.
The most recent attack affected MGM Resorts and shut down operations for several days. This week, MGM has reported that it will experience a $100 million loss in the third quarter due to the attack.
Huge Quarterly Hit
MGM Resorts took immediate action after the cyberattack was noticed in September. The company had experts reviewing its operations, and many systems were shut down for days as the attack was investigated. According to this week’s security filing involving the third quarter, MGM is reporting a huge loss plus an additional $10 million one-time cost for the quarter.
The breach will negatively impact around $100 million for its Las Vegas Strip operations. Experts believe that total occupancy of the Las Vegas property may be affected, but only a 1% loss from last year. Most guest-facing systems have been restored, so guests can rest easy knowing they can travel safely.
However, news of the breach traveled far and wide, and players may feel unsafe traveling to MGM due to the potential risk of stolen personal information. The company says its operations are secure, but some may still be leery of joining.
Details of the Attack
Once the cyberattack occurred at MGM, images began to flood online, showcasing errors on slot machines and long hotel lines. With systems down, slot machines could not provide payout tickets, and visitors could not use their digital hotel keys to get inside their rooms. The casino had to switch to manual operations, which can be quite difficult in today’s tech-based society.
AlphV has claimed to be the mastermind behind the attack, and they are a hacking group that reportedly worked with Scattered Spider to gain access to systems. Data was stolen and held for extortion, though MGM has not said if a ransom was paid.
The private information of customers who used the services of MGM before March 2019 was breached. This includes contact information, date of birth, and license numbers. The company has reported that a smaller number of social security numbers and passport numbers were taken.
MGM and Caesars are now named in several lawsuits by visitors due to the breach of personal information. The attack will have a dire effect on both companies as they try to deal with the aftermath.
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