Casino giant MGM expects $100 million hit from hack
MGM Resorts International said on Thursday a cyberattack last month that disrupted its operations would cause a $100 million hit to its third-quarter results, as it works to restore its systems.
According to MGM, one of the world’s largest gambling companies, its systems were shut down after it detected the attack. In the quarter ended Sept. 30, the company expects to incur less than $10 million in one-time costs related to the acquisition.
Las Vegas customers posted social media images showing slot machines with error messages and queues after the attack last month.
The company declined to comment on whether it was asked for or paid a ransom.
According to MGM, customer data, including names, addresses, genders, dates of birth, and driver’s license numbers, was compromised before March 2019.
In our opinion, there is no evidence that these data have been used for identity theft or account fraud by criminal actors.”
Data stolen by hackers is often held for ransom, leaked to public forums or sold to other cybercriminals.
An example of how large organizations remain vulnerable to cybercrime is the MGM data breach, which the FBI is investigating.
Neither customer bank account numbers nor payment card information was obtained by the hackers, and no data from The Cosmopolitan of Las Vegas was compromised.
MGM stated in a regulatory filing that it has not yet determined the full extent of costs and impacts related to this issue.
Approximately $100 million is expected to be lost in the company’s adjusted property core profit for its Las Vegas Strip division as a result of the breach, and total occupancy is expected to be 93% this October versus 94% last year.