MGM Casino Giant Anticipates $100 Million Impact from Data Breach Caused by Cyberattack
MGM Resorts International has revealed that a cyberattack experienced last month, which disrupted its operations, is expected to result in a $100 million impact on its third-quarter financial results. The company is actively working to restore its systems.
As one of the world's largest gambling corporations, MGM took the precautionary step of shutting down its systems upon detecting the cyberattack to limit potential damage. Additionally, the company foresees incurring a one-time cost of less than $10 million for the quarter ending on September 30th, related to the incident.
Following the attack last month, some customers shared images on social media depicting slot machines displaying error messages and extended queues at Las Vegas hotels owned by MGM.
MGM has refrained from commenting on whether a ransom was demanded or paid in connection with the cyberattack.
The breach exposed the personal data of customers who had utilized MGM services prior to March 2019. This compromised data includes contact details, gender information, date of birth, and driver's license numbers.
MGM also noted that a more limited number of Social Security numbers and passport numbers may have been accessed. Importantly, there is no evidence suggesting that the stolen data has been used for identity theft or account fraud.
It is common for hackers to seek ransoms for stolen data and potentially distribute it in public forums or sell it to other cybercriminals.
The FBI is currently investigating the MGM data breach, highlighting the ongoing vulnerability of large organizations to cybercrimes.
MGM clarified that the hackers did not manage to obtain customer bank account numbers or payment card information. Furthermore, no data from The Cosmopolitan of Las Vegas, one of MGM's luxury resort hotels, was breached.
The extent of the financial costs and associated impacts stemming from this incident have yet to be fully determined. MGM anticipates a negative impact of approximately $100 million on its adjusted property core profit for its Las Vegas Strip division due to the breach. However, the company does not expect the breach to affect its full-year results.
MGM expressed optimism about its position moving forward, noting that it is well-positioned to have a strong fourth quarter, with record results expected in November. This optimism is primarily attributed to an upcoming Formula One racing event scheduled to take place in Las Vegas.