Cyberattacks have seen a significant surge in 2023, with companies like MGM Resorts (NYSE:MGM) and Clorox (NYSE:CLX) falling victim to the increasing trend. Data security company Check Point reports an 8% rise in weekly attacks for the second quarter of this year, marking the most substantial increase in the last two years.
MGM Resorts experienced a massive cyberattack that led to a 10-day shutdown of its online services. The attack affected not only casino operations but also impacted the overall guest experience. Visitors were unable to make online hotel and casino reservations or use their room keys. In addition, services such as television and electricity were down at many hotels, leaving establishments to accept only cash.
This unfortunate event has certainly raised questions about MGM's performance and stability. According to InvestingPro, the company's market cap stands at 12.75B USD, and it has a P/E ratio of 37.46. The company's revenue has grown by 25.57% in the last twelve months, reaching 14.78B USD. Despite the cyberattack, MGM's liquid assets exceed its short-term obligations, indicating a strong financial position.
Guests shared their experiences, with Davina Koss noting that during her visit to Las Vegas, she was unable to get player's cards due to the system being down. "People were just sitting at their slot machines waiting for their cash out because you had to get cash," Koss said.
Another visitor, Amber McCarthy, reported that no TVs worked in her room and there was no electricity at the restaurants, which only accepted cash.
InvestingPro Tips suggests that MGM's stock is currently in oversold territory, and the company's management has been aggressively buying back shares. These insights, along with the company's strong earnings that should allow for continued dividend payments, suggest that MGM might still be a viable investment despite the recent cyberattack. For more detailed information and additional tips, readers can visit InvestingPro's MGM page.
Pete Nicoletti, the global chief information security officer of Check Point, warned about the growing threat of social engineering in cyberattacks. This strategy involves targeting an employee or person associated with the company rather than exploiting a system's weakness. "98% of successful attacks involve some aspect of social engineering," Nicoletti stated.
In response to these threats, Check Point advises individuals to monitor their banking and credit card information following a cyberattack. They also suggest being vigilant for phishing emails, texts or voice calls designed to trick individuals into sharing information and recommend checking credit reports periodically.
Security experts are urging recent visitors to MGM Resorts hotels to closely watch their credit card statements for any suspicious charges. Cyberattacks are not only a concern for companies but also for individuals, and the recent events highlight the need for increased vigilance and security measures. The recent cyberattack on MGM Resorts serves as a stark reminder of the importance of robust cybersecurity measures, not just for the company but also for its customers.
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