MGM Resorts International reportedly refused to pay ransom money demanded by hackers after the cyberattack detected on September 10. As reported, the company followed the suggestions of the Federal Bureau of Investigation (FBI) to discourage the perpetrators from further illegal attempts to interfere with its computer system. MGM Resorts’ decision comes after the September cyber intrusion disrupted the company’s overall US operations to incur damages of around $100 million, according to The Wall Street Journal.
MGM reportedly said that such an amount will be required to remedy the damages to its operations incurred by the slot machine shutdowns, online hotel booking interruptions, and the impact on other online systems by the hacking activity detected on September 10. The operations have been restored, according to the source, including the guest-facing operations that had to be performed in a manual mode during the disruption.
MGM Refuses To Pay Ransom:
As reported by The Wall Street Journal, MGM refused to pay ransom money to hackers to stay aligned with the FBI guidance that doesn’t support such payments. FBI reportedly stated that such an action would not guarantee data recovery but would rather ”reward hackers” and encourage cyber criminal. The source reports that some companies anyway opt to pay ransom to restore online operations and recover data, such as Caesars Entertainment that agreed to pay half of the $30 million ransom demanded by hackers in the late summer cyberattack, according to The Wall Street Journal.
Hotel Occupancy To Recover in November:
Caesars reportedly said that its operations were not impacted as a consequence. On the other hand, hacker action against MGM incurred $100 million damages to this company nationwide and, according to The Wall Street Journal, additional $10 million cost of remedial technology consulting. Also, the company faced a 5% decline in hotel occupancy in September when compared to September 2022, and the October occupancy drop by 1% to 93% in comparison to the prior year. The company reportedly expects bookings to return to normal in November.
As reported by The Wall Street Journal, MGM will use its insurance policy to cover the financial losses and remain intact as far as its annual performance is concerned. Chief Executive Bill Hornbuckle reportedly referred to customers in a statement saying that the company reacted quickly and ensured that no customer’s bank or payment card data were compromised in the attack.
However, hackers did steal information about customers who did business with MGM Resorts before March 2019, such as names, addresses, driver license and some other data, as the source reports. Hornbuckle reportedly said: “We regret this outcome and sincerely apologize to those impacted. Your trust is paramount to us.” The company reportedly also said it would reach out to the customers affected by the attack.