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MGM estimates a $100 million loss due to cyberattack

By C.C. McCandless

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    LAS VEGAS (KVVU) — In a filing to the Securities and Exchange Commission (SEC), MGM Resorts estimated a loss of $100 million due to a recent cyberattack.

According to the Form 8-K filed with the SEC on Thursday, MGM explained that it identified a “cybersecurity issue affecting certain of the Company’s U.S. systems” on September 12. It added that the company “responded swiftly” and shut down its systems to mitigate risk to customer information.

The filing said that MGM’s actions prevented the “criminal actors” from accessing any customer bank accounts numbers or payment card information. It added that resort operations have returned to normal and “virtually all of the Company’s guest-facing systems have been restored.”

MGM said it feels that the incident will affect third quarter financial results and will have a minimal impact on the fourth quarter.

“Specifically, the Company estimates a negative impact from the cyber security issue in September of approximately $100 million,” reads the MGM Resorts SEC filing on Oct. 5.

The three-page document also noted that the company experienced impacts on occupancy due to the availability of booking online and through the MGM app. It said that those effects were mostly contained to the month of September.

MGM explained that it believes that unauthorized third-party activity is now contained.

“The Company has determined, however, that the criminal actors obtained, for some of the Company’s customers that transacted with the Company prior to March 2019, personal information (including name, contact information (such as phone number, email address and postal address), gender, date of birth and driver’s license numbers),” the filing stated.

It added that Social Security numbers and passport numbers were obtained by the hackers for “a limited number of customers.” It said that it has no evidence that data obtained by the criminals has been used for identity theft or fraud.

One man who spoke with FOX5 says he received an email from MGM.

“The email from the CEO pretty much said that all this information was potentially leaked,” Chad Blackmore remembered. “Everyone is safe, somewhat.”

Blackmore is not concerned his data is going to be used by the hackers.

“I feel like they’re picking and choosing,” he said. “Obviously they want their money from the casinos.”

MGM has established a dedicated help line to address questions about the incident. Those concerned can call 800-621-9437 toll-free Monday through Friday from 6 a.m. – 8 p.m., or Saturday and Sunday from 8 a.m. – 5 p.m. (excluding major U.S. holidays).

Reference engagement number B105892 when calling. The Company also has set up a webpage at mgmresorts.com/importantinformation with additional information.

MGM said it will provide notification by email in the coming weeks to individuals impacted by the incident and will offer them free identity protection and credit monitoring services.

“While no company can ever eliminate the risk of a cyber attack, the Company has taken significant measures, working with industry-leading third-party experts, to further enhance its system safeguards,” MGM said in conclusion. “These efforts are ongoing.”

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