Cyberattack is on the rise in the United States. Hackers recently breached MGM Resorts International’s systems, and the company hasn’t yet regained their full control. Still, reports indicate that Caesars Entertainment paid a huge sum of money to fraudsters to deter them from hacking its data.
Caesars and MGM are the two biggest casino and hospitality operators in the country. Therefore, their attacks have sent shockwaves in the gaming industry.
Caesars Entertainment runs Caesars Palace, Harrah’s casino, and other gaming properties in the U.S. Cybercriminals infiltrated its sophisticated systems in August. The Wall Street Journal and Bloomberg discovered that Caesars parted with $30 million to convince hackers not to release its vital data.
Nevertheless, some people claim that the gaming operator paid about $15 million and swiftly ended its system’s disruption.
MGM Resorts International’s Attack
Caesars Entertainment’s ransom prevented a huge crisis before media outlets got more information about it. Yet, MGM Resorts hasn’t managed to end its ongoing cyberattack. Most of its key systems like sports gambling kiosks, slot machines, hotel room keys, and credit card transactions, are under the hackers’ control.
ALPHV/BlackCat, one of the ransomware gangs in the country, recently stated that it’s the one behind MGM Resorts’ cyberattack. Still, it plans to attack some businesses and universities.
MGM stated in its social media profiles that all its systems are running. However, visitors cannot access some services.
Who Attacked Caesars Entertainment’s System?
Scattered Spider claimed it was the hacking group that infiltrated Caesars’ system. Rumors state that it might have partnered with ALPHV/BlackCat to attack MGM Resorts.
Typically, hackers apply social engineering to access companies’ internal systems. They approach and convince the firm’s workers to help them access their networks.
VX-Underground, a malware resource website, revealed that the hacking groups used the same technique in MGM Resorts’ attack. Still, paying fraudsters might seem unethical. But it might be an entrepreneur’s last resolve to save their investment.
The ongoing cyberattack has caused MGM Resorts’ stock to drop by 1.2 percent since the media started announcing it. Moody’s, a New York credit agency, stated that hackers might have affected its credit.
One analyst termed it as a credit-negative scenario. Caesars Entertainment’s stock rebounded fast after falling for a while.
What Are the Cyberattacks’ Effects?
MGM Resorts and Caesars Entertainment aren’t the only gaming operators that have experienced cyberattacks of late. Stake.com, an offshore cryptocurrency casino, had a $40 million system infiltration last week that the FBI believes was performed by a North Korean hacking group.
The escalating cyberattacks on gaming properties underscore digital extortion. Each gaming operator needs to create more measures to deter hackers from compromising its system.
These two latest incidents indicate that prevention is the only reliable strategy that a company can use to protect its systems. The Securities and Exchange Commission (SEC) is awaiting Caesars Entertainment’s official disclosure of its cyberattack.