🎈 Up Big Today: Find today's biggest gainers (some over 50%!) with our free screenerTry Stock Screener

Caesars and MGM Report Cybersecurity Breaches, Ransomware Attacks

Published 15/09/2023, 15:38
© Reuters.
MGM
-
CZR
-

US casino giants Caesars (NASDAQ:CZR) Entertainment and MGM Resorts (NYSE:MGM) have reported cybersecurity incidents to the Securities and Exchange Commission (SEC), following ransomware attacks on their operations. The disclosures came in line with SEC rules implemented in March 2023, which mandate publicly traded companies to report "material" cybersecurity incidents within four days.

On Thursday, Caesars Entertainment revealed that an unauthorized actor had accessed a copy of its loyalty program database, which included sensitive data such as Social Security and driver's license numbers of a significant number of members. The breach was discovered earlier this month after the detection of suspicious activity in the company's network. The company said hackers targeted an outsourced IT support vendor through a social engineering attack. Caesars has reportedly paid half of the $30 million ransom demanded by the hackers, according to The Wall Street Journal.

Caesars stated that its customer-facing operations, including physical properties and online and mobile gaming applications, were not impacted by the incident. The company is still investigating the extent of any other sensitive information that might have been acquired by the hackers.

Two days prior to Caesars' announcement, MGM Resorts reported a cybersecurity issue affecting some of its systems. The details provided by MGM in its SEC report were minimal, only reiterating a press release from September 12 stating that a cybersecurity issue was identified and an investigation was ongoing. Unlike Caesars, MGM Resorts is still experiencing system outages due to the incident.

Those familiar with the incidents have linked both breaches to the threat group Scattered Spider. However, MGM declined to provide additional details on the cyberattack on its systems that occurred on September 10.

In response to these incidents, both companies are taking steps to safeguard their systems and data. MGM has launched an investigation and notified law enforcement while also shutting down certain systems. The full scope of the costs related to these attacks, including potential indemnification claims against third parties and the extent to which these costs will be offset by cybersecurity insurance, is yet to be determined.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.