MGM Resorts (NYSE:MGM) International recently faced a sophisticated cyberattack that compromised customer data and caused an estimated $110 million loss. The company promptly reacted to the attack, shutting down systems to prevent further breaches. Normal operations resumed shortly after, with the company incurring $10 million in one-time expenses related to the incident. Despite the disruption, MGM reported an 88% occupancy rate in September.
The breach affected MGM's U.S. systems, as disclosed in an SEC Form 8-K on September 12. The company successfully barred the criminal actors from accessing financial data, but this swift action led to some disruption in occupancy. The now-contained incident is expected to cost about $100 million in Q3. Compromised personal data includes Social Security and passport numbers of customers who used MGM's services before March 2019.
CEO Bill Hornbuckle reassured customers, stating that while contact details and driver's license numbers were accessed during the attack, the hackers did not breach The Cosmopolitan or any bank details. He also expressed confidence that cybersecurity insurance would cover the losses incurred due to the attack.
To strengthen its security measures and prevent future breaches, MGM is working with industry-leading third-party experts to enhance system safeguards.
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