MGM Resorts Incurs $100M In Reported Costs From Cyberattack

In a regulatory filing on Thursday, MGM Resorts revealed that a recent cyberattack resulted in a cost of over $100 million for the casino giant.

The incident, which occurred on September 10th, compelled MGM to close down computer systems at its casino and hotel properties across the United States as a precaution to safeguard their data.

MGM reported that the cyberattack impacted reservations and casino floors in Las Vegas and various other states. Customers shared images on social media depicting slot machines displaying error messages and long queues at Las Vegas hotels.

On September 20th, MGM declared the cyberattack officially over after a 10-day shutdown.

The hacking group AlphV asserted its involvement in the cyberattack. According to Reuters, AlphV collaborated with another hacking group known as Scattered Spider to breach MGM systems, pilfer data and use it as leverage for extortion.

MGM CEO Bill Hornbuckle said, “While we experienced disruptions at some of our properties, operations at our affected properties have returned to normal, and the vast majority of our systems have been restored. We also believe that this attack is contained.”

The CEO stated that no customer bank account numbers or credit card details were compromised during the incident. Nevertheless, hackers did manage to obtain other personal data, including names, driver’s license numbers, contact details, passport numbers and social security numbers of certain customers who had engaged with MGM prior to March 2019.

Furthermore, MGM had no indications that the hackers had utilized this information for the purpose of committing account fraud or identity theft, as stated by Hornbuckle. He also highlighted that the company had proactively contacted affected customers through email and extended offers for complimentary identity protection and credit monitoring services.

“We regret this outcome and sincerely apologize to those impacted,” Hornbuckle said.

The gaming corporation anticipates that the security breach will result in a nearly $100 million adverse impact on its adjusted property core profit within its Las Vegas division. Furthermore, it foresees a slight decrease in total occupancy for October, estimating it to be at 93% compared to the 94% recorded in the corresponding month of the previous year.

Nevertheless, MGM expressed confidence in its positioning for a strong fourth quarter, with anticipated record-breaking outcomes in November primarily attributed to the Formula 1 racing event slated to occur on the iconic Las Vegas Strip.