MGM Resorts (NYSE:MGM) International continues to grapple with the aftermath of a significant cyber attack that began on Sunday, September 10, 2023. The incident has disrupted operations across the casino and hotel giant's properties, affecting systems ranging from room reservations to slot machines.
The Las Vegas-based company first acknowledged the cyber issue on Monday, September 11, stating that it had identified a cybersecurity problem affecting its systems. MGM Resorts immediately initiated an investigation with the help of external cybersecurity experts and notified law enforcement. The company shut down certain systems as a protective measure while working diligently to resolve the matter.
On Tuesday, September 12, the Las Vegas field office of the FBI confirmed its involvement in investigating the matter. Meanwhile, MGM Resorts reiterated that many of its computer systems remain offline as investigations continue. Despite these challenges, the company maintained that its resorts were operational, with guests able to access their hotel rooms and front desk staff ready to assist as needed.
However, guests reported significant disruptions as evidenced by social media posts showing long check-in lines and malfunctioning slot machines. Some customers shared stories about not being able to make credit card transactions or access their hotel rooms using key cards.
By Wednesday, September 13, the situation remained unresolved. MGM Resorts' websites were still offline, forcing the company to direct customers to third-party websites for bookings. The company's stocks fell 1.7% to $41.99 on Tuesday after a 2.4% loss on Monday.
Late on Tuesday, a Russian-speaking ransomware gang known as ALPHV or BlackCat claimed responsibility for the cyberattack. The group stated that they had compromised MGM Resorts' systems via a simple phone call to an employee identified through LinkedIn.
The cyberattack has had significant financial implications for MGM Resorts, with experts suggesting losses accruing by the minute due to disrupted services and potential costs associated with restoring access and securing compromised systems.
The cyberattack on MGM Resorts is the latest in a series of cybersecurity incidents that the company has faced. In 2019, a data breach at the company exposed personal information of up to 10.6 million customers. The current cyberattack has raised concerns about the security of sensitive customer data and the resilience of MGM Resorts' cybersecurity measures.
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