In a major cyberattack on MGM Resorts (NYSE:MGM), the company suffered an estimated loss of $100 million in profits and an additional $10 million for legal and technical services. The ransomware attack was orchestrated by ALPHV (BlackCat) and its subgroup Scattered Spider on Friday. Operations were disrupted across properties like ARIA and Bellagio with gaming machines, digital door locks, and online booking systems being disabled.
In response to the attack, MGM adopted post-attack measures such as cash-only payouts on slot machines and offering dining credits and free alcohol to guests. Despite the significant disruption, MGM refused to pay any ransom to the attackers, unlike Caesars (NASDAQ:CZR) Entertainment who complied with a $15 million ransom demand during a similar attack.
The cyberattack not only led to operational disruptions but also resulted in the theft of customers' personal data. Names, contact details, birth dates, driver’s license numbers, Social Security numbers, and passport details of some customers were compromised. However, no banking information was accessed according to CEO Bill Hornbuckle. The compromised personal data belonged to customers who transacted before March 2019.
MGM spokespeople Andrew Chapman and Brian Ahern have not disclosed the number of affected customers. Although there is no evidence of the stolen data being used for identity theft or account fraud yet, customer complaints suggest ongoing issues with MGM’s mobile app post-attack.
Despite these challenges, MGM Resorts has managed to restore most guest-facing systems and predicts a 93% occupancy rate in October. The upcoming Formula 1 event is expected to boost Q4 earnings. Interestingly, The Cosmopolitan of Las Vegas remained unaffected by the breach.
The FBI continues to investigate these incidents while MGM Resorts recover from the significant cyberattack.
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