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MGM Resorts Cyberattack: A $100 Million Blow to the Third Quarter

In a major setback to one of the world's leading gambling firms, MGM Resorts International recently revealed that a cyberattack last month will have a significant financial impact. The attack disrupted its operations, forcing the company to shut down its systems temporarily. This incident serves as a stark reminder of the persistent threat cybercrime poses to even the largest organizations.

The Breach:

MGM Resorts International, a giant in the global gambling industry, disclosed that a cyberattack has led to a projected $100 million hit to its third-quarter results. The attack, detected last month, prompted the company to take swift action in order to contain the damage. It is also expected to incur an additional one-time cost of less than $10 million for the quarter ending on September 30.

Customer Impact:

Customers took to social media to share images of disrupted operations, including slot machines displaying error messages and long queues at MGM's Las Vegas hotels. The breach exposed private data of customers who had used MGM services prior to March 2019. This included sensitive information such as contact details, gender, date of birth, and driver's license numbers. While MGM confirmed a limited number of Social Security and passport numbers were also obtained, they asserted that there's no evidence of this data being used for identity theft or account fraud.

Response and Investigation:

MGM Resorts International has refrained from commenting on whether a ransom was demanded or paid. The FBI is actively investigating the breach. Fortunately, MGM clarified that the hackers did not gain access to any customer bank account numbers or payment card information. Additionally, data from the luxury resort hotel, The Cosmopolitan of Las Vegas, was not breached.

Financial Implications:

The full extent of the costs and impacts arising from this breach is yet to be fully determined. The company anticipates that the breach will negatively impact its adjusted property core profit for its Las Vegas Strip division by approximately $100 million. Despite this setback, MGM remains optimistic about its full-year results and anticipates a strong fourth quarter, driven primarily by an upcoming Formula One racing event in Las Vegas.

Are you and your assets safe?

The MGM Resorts cyberattack serves as a potent reminder of the persistent threats that large organizations face in the digital age. Despite robust cybersecurity measures, no company is immune to the risks of cybercrime. As MGM works diligently to restore its systems and recover from this breach, the incident underscores the critical importance of continued vigilance and investment in cybersecurity measures across all industries.

Cyber threats are real. Protect your business from cyber threats. Stay secure.

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