A cyberattack has successfully penetrated the computer system of MGM Resorts, compelling the company to halt operations at approximately a dozen renowned casino hotels in Las Vegas, such as the Bellagio, Mandalay Bay, and the Cosmopolitan, along with an additional six MGM properties across the United States.
As a result of the attack, hotel guests were unable to utilize the mobile app or digital key cards to make purchases and access their rooms, causing hours of inconvenience. Consequently, the hotels had to resort to manual transaction processing.
The problem was initially identified by the company on Sunday evening. On Monday, the FBI said that it is actively monitoring the situation.
Social media users are venting their frustration over the extent and duration of the outage at MGM Resorts, reporting issues like malfunctioning hotel key cards and worries about the safety of their personal information. Notably, in 2020, MGM admitted to a data breach where the personal details of over 10 million customers were compromised and subsequently appeared on a hacking forum.
Since Monday, when MGM first acknowledged the outages, the company’s stock price has dropped by over 6%, in contrast to the S&P 500, which has seen only slight gains during this time frame.
This morning, MGM submitted an 8-K report to the Securities and Exchange Commission, indicating that on Tuesday, the company had issued a press release concerning a cybersecurity problem it had encountered.
Companies typically submit 8-K reports to inform the SEC about events that could significantly impact their operations, and an MGM spokesperson has confirmed that the company considers the cybersecurity incident to be of material importance.
Meanwhile, Moody’s, a leading credit rating agency, cautioned that the cyberattack might have an adverse impact on MGM’s credit rating, emphasizing that it has exposed critical risks within the company.
MGM Resorts, among the largest casino-hotel companies globally, reported a revenue of $14.1 billion in the previous year. In Las Vegas, the company, as stated by Jonathan Halkyard, its CFO and treasurer, accommodates approximately 12 million room nights annually.
(Source: Suzanne Rowan Kelleher | Forbes | Rohan Goswami | CNBC)
