MGM Resorts International, Caesars Entertainment Security Incident

Cyber Liability Insurance Insights: Lessons From Recent HeadlinesHow MGM and Caesars Attacks Highlight the Power of Cyber Insurance Marc Galindo 4 min July 26, 2024 This article was originally published on Live Insurance News . In late 2023, two of the most iconic names in the hospitality industryMGM Resorts and Caesars Entertainmentfell victim to significant cyberattacks. These breaches underscore the growing threat of cybercrime and highlight a dramatic shift in the digital battleground. Beyond a simple wake-up call for cybersecurity measures, these incidents showcase the pivotal role of cyber insurance in mitigating financial and operational damages and providing a lifeline during the chaos of a cyber crisis. The Attacks: What Happened? MGM Resorts International Russian hacker group, ALPHV, infiltrated MGM's systems with a crippling ransomware attack, causing widespread disruptions. Guests experienced check-in delays and were locked in or out of their hotel rooms. Gaming machines went offline and stopped all transactions, causing substantial revenue losses and operational disarray. The threat actor group demanded a ransom for the decryption of the compromised data, which MGM refused to pay, resulting in a loss of over $110 million $100 million in lost revenue and approximately $10 million in one-time expenses such as consulting services and legal fees. Caesars Entertainment Around the same time, Caesars reported a data breach that exposed many of its loyalty program members' sensitive information. ALPHV former affiliate, Scattered Spider, accessed a vast trove of personal data, including Social Security numbers and driver's license details. Unlike MGM, Caesars opted to pay $15 million in ransom to prevent the data from being leaked. The goal of this decision was to prevent the potentially devastating exposure of their customers' private information. Contrasting Ceasars' response illustrates the varying strategies that companies may adopt when under cyber...

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