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On Wednesday, Bill Hornbuckle, the CEO of MGM Resorts (NYSE:) International, spoke at the Global Gaming Expo about the recent cyberattack that his company experienced. The attack, which he referred to as “corporate terrorism,” is expected to cost MGM about $100 million in earnings. Despite this setback, Hornbuckle reported robust booking numbers, indicating no customer fallout from the incident.
In an interview with CNBC’s Contessa Brewer on the same day, Hornbuckle confirmed that no ransom was paid in response to the attack. The company had already detected and responded to the digital heist by rebuilding its systems, which led to a pre-emptive shutdown across MGM’s 36,000 hotel rooms. This affected telephones, casinos, and key systems but ensured the safeguarding of all credit card and banking information.
Hornbuckle’s statement to Bloomberg clarified that his dismissal of a ransom note from hackers was not due to heroism but because MGM had already taken action against the intrusion. The attack began on September 7, leading to an infiltration of the critical corporate DNS layer by young men suspected to be part of Scattered Spider. This group, originating from the U.S. and U.K., is also linked to an attack on Caesars (NASDAQ:) Entertainment, Inc., who chose to pay a substantial ransom.
The incident has served as a cultural turning point for MGM Resorts International. In its aftermath, the company is investing in infrastructure to protect against future threat actors. Hornbuckle expressed confidence in these measures, believing the current threat to be neutralized.
Despite the financial impact of the attack estimated at $100 million according to a regulatory filing, MGM’s premarket shares experienced a 0.70% rise on Wednesday. The company’s proactive response and ongoing investments in security infrastructure appear to have maintained investor confidence.
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