Caesars Entertainment reportedly spent a substantial sum of $15 million to appease hackers who threatened to expose sensitive customer data that had been stolen during a cyberattack. The Wall Street Journal stated that this payout was around half of the initial $30 million demanded by the hackers. Caesars confirmed that the breach occurred due to a “social engineering attack” on an external IT support vendor. The hackers managed to acquire a copy of Caesars’ loyalty program database, including driver’s license numbers and Social Security numbers of a considerable number of customers. Caesars stated that although they had taken measures to delete the stolen data, they couldn’t guarantee its complete eradication. However, they assured that there was no evidence of the data being further shared or misused on the web. The culprits behind the cyberattack were not identified by Caesars, but sources suggest a group known as Scattered Spider or UNC 3944, which specializes in social engineering attacks, may be responsible. The attack is said to have begun in late August. Caesars highlighted that there was no proof of customer financial information such as bank account numbers being accessed in the breach. They are offering credit monitoring and identity protection services for loyalty program members and are still assessing the full extent of the incident’s costs and impacts, including the potential coverage by cybersecurity insurance or indemnification claims against third parties. Caesars’ response was disclosed in the context of another recent cyberattack on MGM Resorts, which resulted in operational disruptions for guests.
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