MGM Hotels and Casinos Experience Critical Cybersecurity Incident, Resulting in Immediate System Shutdown

MGM Resorts International, a renowned casino and hotel chain, announced on Monday that it was facing a “cybersecurity issue” impacting its online systems, causing disruptions for customers, particularly in Las Vegas. Cybersecurity experts speculated that the company had likely fallen victim to a pervasive cyberattack.

MGM Resorts did not provide specific details regarding the disruptions or disclose the timeline of the issue, but it confirmed that law enforcement had been notified. The company stated that it had taken prompt action to safeguard its systems and data by shutting down certain systems.

On social media, MGM Resorts posted, “Our investigation is ongoing, and we are working diligently to determine the nature and scope of the matter.”

There were visible signs of disruptions reported by customers, including the company’s website being down and issues accessing hotel rooms and using slot machines at their resorts. MGM Resorts did not respond to inquiries.

KTNV 13, a Las Vegas TV station, reported that multiple gambling machines at MGM Resorts’ hotels had gone offline, leaving guests unable to charge expenses to their rooms, make reservations, or use digital room keys.

In a late-night statement, MGM Resorts reassured that their resorts continued to offer the expected experiences, including dining, entertainment, and gaming options. The company confirmed that hotel rooms remained accessible and front desk staff were ready to assist guests.

The extent of the cybersecurity disruptions and the number of affected individuals were not disclosed. MGM, with its numerous hotel rooms in Las Vegas, including iconic properties like Mandalay Bay, Aria, Bellagio, and MGM Grand Las Vegas, becomes an attractive target for cyberattacks due to its vast data holdings.

Dr. Greg Moody, an associate professor of information systems and cybersecurity at the University of Nevada, Las Vegas, explained that a “cybersecurity issue” typically suggests an attack on the company’s network. Such attacks are usually driven by profit, with attackers stealing data and either holding it for ransom or selling it on underground marketplaces for identity theft purposes.

Dr. Moody, who has collaborated with MGM Resorts’ technical team on previous projects, suggested that the attacker(s) may have exploited vulnerabilities in the company’s defense mechanisms to compromise its systems.

Large businesses like MGM are frequent targets of cyberattacks due to their valuable data assets. Dr. Arthur Salmon, the director of the cybersecurity program at the College of Southern Nevada, identified utility companies, hospitals, and casinos as particularly vulnerable industries, given the extra pressure to restore normal operations and the potential reputation damage from data breaches.

Cybersecurity professor Dr. Yoohwan Kim from the University of Nevada, Las Vegas, mentioned a common tactic where attackers steal data from financially secure companies, demand a ransom to decrypt the systems, and wait for payment.

According to Dr. Salmon, ransom amounts typically range from hundreds of thousands to low millions for larger companies. Recovering from a widespread cybersecurity attack can be a long process, taking months or even years.

Recent cyberattacks worldwide have disrupted operations in various sectors, affecting a gasoline pipeline, hospitals, and grocery chains, potentially compromising intelligence agencies. MGM itself experienced a data breach in 2019, impacting approximately 10.6 million individuals.

Rebecca Carballo contributed reporting.

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