(Reuters) – MGM Resorts International revealed on Thursday that a recent cyberattack on their systems would result in a $100 million loss for their third-quarter results. The company shut down its operations to contain the attack and expects to incur an additional one-time cost of less than $10 million for the quarter that ended on September 30.
Following the cyberattack, MGM customers shared images on social media of error messages on slot machines and long queues in Las Vegas hotels.
A hacking group called AlphV claimed responsibility for the breach. According to sources, AlphV collaborated with another group known as Scattered Spider to infiltrate MGM’s systems and steal data for extortion purposes.
MGM has not confirmed whether they were asked for or paid any ransom. The company stated that customer data, including contact information, gender, date of birth, and driver’s license numbers, was compromised for customers who used MGM services before March 2019. They suspect that a limited number of Social Security numbers and passport numbers were also obtained.
However, MGM stated, “We have no evidence that the criminal actors have used this data to commit identity theft or account fraud.”
Hackers often hold stolen data for ransom or sell it to other cybercriminals, potentially exposing individuals to identity theft and account fraud. The FBI is currently investigating the breach, highlighting the vulnerability of large organizations to cybercrime.
Experts who track Scattered Spider have observed an increasing number of organizations falling victim to their sophisticated social engineering tactics.
MGM confirmed that the hackers did not gain access to customer bank account numbers or payment card information. Additionally, data from their luxury resort hotel, The Cosmopolitan of Las Vegas, remained unaffected by the breach.
In a regulatory filing, MGM stated, “The full scope of the costs and related impacts of this issue has not been determined.” They anticipate a negative impact of approximately $100 million on their adjusted property core profit for the Las Vegas Strip division and expect a slightly lower total occupancy rate compared to the previous year.
However, the company reassured investors that the breach would have no impact on their full-year results. MGM expressed confidence in having a strong fourth quarter, driven by a Formula One racing event scheduled to take place in Las Vegas, which they expect to deliver record-breaking results in November.
Reporting by Zeba Siddiqui in San Francisco and Shivansh Tiwary in Bengaluru; Editing by Shilpi Majumdar and Tom Hogue
Credit: The Star : Tech Feed
