Several days ago, MGM Resorts International was hit by an unprecedented cybersecurity issue, forcing it to shut down multiple computers and temporarily shut down its official website. Believed to be a cyberattack, the issue affected the casino and hospitality giant’s business in multiple states.

Following reports about an earlier cyberattack on Caesars Entertainment, another casino juggernaut, people familiar with the matter claimed that the cyberattack on MGM Resorts had been initiated by the same group.

Sources identified the wrongdoers as the Scattered Spider group, a notorious team of cybercriminals, believed by experts to be comprised of tech-savvy young people. Currently one of the most dangerous hacker groups in the United States, the Scattered Spider group cleverly uses social engineering to get hold of users’ login credentials and OTP codes.

The efficacy of this tactic has resulted in multiple successful cyberattacks, disrupting companies’ business.

MGM Prepares for Material Losses

MGM Resorts earlier admitted that the incident carries a significant material risk to the company. This was reflected in the company’s share price. Currently trading at a price of $41.47 per share, MGM’s stock has been on the decline since the first news of the incident.

In addition, the shutdown of multiple corporate emails, sites and booking systems is likely to incur further losses. Even worse, the shutdowns have caused significant disgruntlement among unhappy MGM Resorts customers who continue to express their worries about their personal data on social media.

Adding to the casino giant’s woes, Moody’s, an influential credit rating agency, noted that the recent attack is likely to affect MGM’s credit rating negatively because of the underlying security weaknesses.  

While MGM refused to comment on Moody’s warning, the company filed an 8-K report to the Securities and Exchange Commission, warning it about the potential impact of the cyberattack.

In the meantime, reports claim that Caesars Entertainment had been hit by a similar breach several days prior to the MGM Resorts incident. According to people familiar with the matter, Caesars had to pay tens of millions of dollars to the wrongdoers in order to secure its business.

Elsewhere, Stake.com, a leader in online and crypto gambling, recently lost millions of dollars in cryptocurrencies following an attack from another cybercrime group. The FBI later identified the attackers as the Lazarus Group, a team of hackers with ties to North Korea.

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