MGM Resorts predicts $100 million loss due to cyberattack

MGM Resorts recently revealed that a data breach it experienced last month is likely to cost the company over $100 million, according to a regulatory filing. The cyberattack, which was discovered on September 10, prompted MGM to shut down certain computer systems at its properties across the United States in order to safeguard data. Customers reported difficulties making credit card transactions, accessing cash machines, and entering hotel rooms.

The company, however, has not confirmed whether the incident involved ransomware. Cybersecurity firm Emsisoft's Brett Callow suggested that if it was a ransomware attack, it could be the most expensive one on record. MGM CEO Bill Hornbuckle stated that operations have returned to normal and most systems have been restored. He assured customers that no bank account numbers or payment card information were compromised, although personal information such as names, contact details, driver's license numbers, Social Security numbers, and passport numbers belonging to some customers who had interacted with MGM prior to March 2019 were stolen. Hornbuckle emphasized that MGM has seen no evidence of the hackers using this data for fraudulent or identity theft purposes. The company intends to contact affected consumers via email and provide free identity protection and credit monitoring services.

MGM anticipates a negative impact on its third-quarter financial results, particularly in Las Vegas, but minimal impact in the fourth quarter and for the year as a whole. In addition to the estimated $100 million loss, the company expects to incur charges of less than $10 million for one-time expenses like legal fees and technology consulting. MGM’s data breach was not an isolated incident, as Caesars Entertainment also reported a cyberattack in September, although its operations were not disrupted.

Caesars reportedly paid $15 million of a $30 million ransom demanded by hackers. MGM, on the other hand, refused to pay the ransom demand. Clorox, a company outside the casino industry, also disclosed a recent cyberattack, which resulted in significant disruptions to its operations and a projected decline in net sales for the first quarter of 2024.


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