Protective Measures: Clorox and MGM Resorts Combat Cyberattack Impact

Recent weeks have been filled with cyberattack-related news, leaving companies scrambling to address the aftermath.

It all began last Wednesday, when Johnson Controls announced that it had fallen victim to a cyberattack. The company stated that it had experienced disruptions to its internal IT infrastructure and applications. The financial repercussions of the attack are yet to be determined, but Johnson Controls expressed concern about the impact on the timely release of its financial results for the fourth quarter and full fiscal year.

This particular cybersecurity incident is of significant interest due to Johnson Controls’ clientele, which includes federal agencies such as the Department of Homeland Security. The agency is currently investigating whether any floor plans and security information were compromised as a result of the attack.

Fast forward to this week. On Wednesday, Clorox shocked investors with an earnings warning. The company revealed that a major cybersecurity breach in August had caused widespread disruption, including delays in order processing and significant product outages. As a result, Clorox is now assessing the long-term impact of the attack on its fiscal year 2024 and beyond. The company is anticipating a substantial decline in year-over-year sales and a quarterly loss.

Then on Thursday night, MGM Resorts disclosed that it expects the September cyberattack it experienced to cost the company approximately $100 million. The attack resulted in reduced occupancy due to the unavailability of bookings through MGM’s website and mobile applications.

MGM Resorts stated that the impact of the attack should be minimal beyond the third quarter and will not significantly impact overall operations and results for the full year. Notably, the company refused to pay the ransom demanded by the attackers.

In contrast, Caesars decided to pay a $15 million ransom following its own data breach in September. Fortunately, the incident did not impact the company’s casino or online operations, although the financial impact has yet to be disclosed.

While these recent developments have garnered attention, it’s important to remember that numerous well-known companies have faced significant cybersecurity issues throughout the year. Cyberattacks have become a recurring problem for businesses across various industries.

Campbell Soup managed to avoid a fate similar to Clorox’s after experiencing a cyberattack at one of its facilities during the summer. The incident had minimal impact on operations and the company’s financials.

Another food manufacturer, Dole, fell victim to a cyberattack in February. The company incurred costs of $10.5 million, but the incident had a limited impact on its operations.

Brunswick temporarily halted certain operations following a cybersecurity incident in June. The event resulted in approximately $85 million in losses and lower-than-expected second-quarter numbers. It took more than a week for operations to resume.

Tempur Sealy and Estee Lauder also experienced IT system shutdowns due to separate cyberattacks in July.

In March, Sysco disclosed a data breach that occurred in January. While customer and employee data were compromised, there were no significant operational consequences.

Similarly, mining company <

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