MGM To Assess the Damage From Cybersecurity Breach
Authorities Investigate Attack on the Hotel Chain
MGM announced to its official social media handles that the initial shutdown affected various aspects of its operations, including reservation systems, booking systems, hotel electronic key card systems, and the casino floors.The outage also impacted the company's email systems.
While the casino floors are now functioning, the reservation systems for their thousands of hotel rooms and the booking system for their restaurants are still down, more than a day after the incident was first reported.
MGM operates thousands of hotel rooms, with revenue from these rooms in Las Vegas surpassing the revenue directly attributed to its casino operations. According to SEC filings, the company reported Las Vegas rooms revenue of $706.7 million for the quarter ended June 30, compared to casino revenue of $492.2 million for the same period.
In response to the cyber attack, MGM stated that it immediately launched an investigation with the help of external cybersecurity experts. The company also informed law enforcement agencies and took prompt action to protect its systems and data by shutting down certain systems. The FBI confirmed its awareness of the ongoing incident but did not provide further details.
MGM's website has been replaced with a landing page advising patrons to contact their hotels or casinos directly via phone. Social media reports suggest that the company's systems were down as early as Sunday night, although the exact timing of the outage remains unclear.
This is not the first time MGM has faced cybersecurity incidents. In 2020, personal information of over 10 million MGM visitors was exposed on a hacking forum.
The company stated that the data was exfiltrated in the summer of 2019. The government has identified the gaming and lodging sector as critical infrastructure, and the Department of Homeland Security has warned of the potential consequences of a large-scale cyber attack on companies in this sector.
The full extent of the government's response to the cyber attack is currently unknown, apart from the involvement of the FBI. MGM's shares closed down nearly 2.4% on Monday, September 11.
As MGM works to resolve the cybersecurity issue, customers are advised to directly contact their respective hotels or casinos for any inquiries or assistance they may require. The company is closely collaborating with external cybersecurity experts to investigate and mitigate the impact of the attack, ensuring the protection of its systems and data.