The MGM Cyberattack: A Deep Dive into Its Financial and Operational Impact

Breached Company

Sep 18, 2023 — 2 min read

Introduction

The recent cyberattack on MGM Resorts International has sent shockwaves through the business sector, highlighting the growing threat of cybercrime. The attack has had a significant financial and operational impact on the company, affecting its reservation system, casino floors, and even its daily revenue. This article aims to provide a comprehensive analysis of the MGM cyberattack, its financial repercussions, and the steps taken by the company to resolve the issue.

Financial Losses: A Bleak Picture

MGM Resorts International is estimated to lose up to $8.4 million in daily revenue until the cybersecurity issues are resolved. This is a staggering figure, considering the company generates approximately $42 million in daily revenue and $8 million in daily cash flow across its entire operations. Analysts predict a near-term loss of 10% to 20% in revenue and cash flow if the current conditions persist. The cyberattack has affected MGM's operations in multiple states, including Nevada, a significant hub for the company.

Operational Disruptions: A Week-Long Nightmare

The cyberattack lasted for over a week, disrupting MGM Resorts' properties across the United States. The attack impacted the company's website, reservation systems, and some gaming machines. It began on September 11 and had lingering effects for several days. However, a recent news release from MGM Resorts has stated that most hotel operations have returned to normal. The company has assured guests that all casinos, hotels, dining, entertainment, and resort services are operating as usual, although some intermittent issues may still exist.

Steps Taken by MGM Resorts

Upon discovering the cyberattack, MGM Resorts initiated an investigation and sought assistance from external cybersecurity experts as well as law enforcement agencies. The company is actively working to address the issue and has taken steps to ensure that individual guest needs are met. Services like Slot Dollars, FREEPLAY, MGM Rewards points redemption, and promotional offers may have been affected, but the company's employees are ready to assist guests with any issues they may encounter.

The Growing Threat of Cybercrime in the Business Sector

The MGM cyberattack is not an isolated incident. Caesars Entertainment also experienced a cyberattack, incurring expenses and reportedly paying hackers to prevent data release. These incidents reflect the growing threat of cybercrime in the business sector, emphasizing the need for robust cybersecurity measures.

Conclusion

The MGM cyberattack serves as a cautionary tale for businesses, highlighting the potential financial and operational risks associated with cybercrime. While MGM Resorts has taken steps to resolve the issue and restore normal operations, the financial losses incurred are a stark reminder of the vulnerabilities that even large corporations face. As the investigation into the attack continues, it remains to be seen what further steps MGM Resorts will take to bolster its cybersecurity measures and prevent future attacks.

Disclaimer: This article is based on the information available at the time of publication and may be subject to updates.

For the latest updates on the MGM cyberattack and its impact, stay tuned to MGM Resorts' official channels and exercise caution while engaging in online activities.

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