MGM Resorts Faces Ongoing Cyberattack and Outage
MGM Resorts, the renowned hotel and casino company, is grappling with an extensive cyberattack and subsequent outage that has now entered its third day. The company filed a report with the Securities and Exchange Commission (SEC) on Wednesday, acknowledging the "cybersecurity issue" that forced them to take critical systems offline. As of now, MGM has not restored its corporate email, restaurant reservation, and hotel booking systems, while digital room keys remain inaccessible. The company's website initially provided phone numbers for its properties but now directs patrons to LiveNation's Ticketmaster or AXS for event tickets.
Concerns over Credit Rating and Stock Price
Credit agency Moody's issued a warning, emphasizing the "key risks" exposed by the cyber incident, which could potentially impact MGM's credit rating. MGM's share price has already experienced a decline of over 6% since Monday, in contrast to the modest gains seen in the S&P 500 during the same period. The FBI has confirmed its monitoring of the situation, while the SEC's new cyber disclosure rules, which will require enhanced reporting, will not come into effect until the end of the year.
Customer Frustration and Data Security Concerns
On social media, patrons have expressed frustration with the prolonged outage, particularly regarding issues with hotel key cards. Furthermore, concerns have been raised about the security of personal data, especially in light of MGM's previous data breach in 2020, where the personal information of over 10 million customers was compromised. MGM Resorts has been communicating with the press using non-corporate email addresses, and apart from a brief update on the restoration of gaming floors, the company has provided limited additional information.
Awaiting Further Updates
As of now, the SEC has not responded to requests for comment on the ongoing situation. MGM Resorts continues to work towards resolving the cyberattack and restoring its systems fully. The incident serves as a reminder of the persistent threats faced by businesses in the digital age and highlights the importance of robust cybersecurity measures to safeguard sensitive information and maintain operational continuity.
Conclusion: Lessons for New Businesses
The cyberattack and subsequent outage faced by MGM Resorts underscores the critical importance of robust cybersecurity measures for businesses, particularly those in the early stages of their development.
Importance of Cybersecurity
New businesses must prioritize investing in comprehensive cybersecurity infrastructure to protect their operations and customer data. The MGM incident serves as a stark reminder of the potential operational disruptions and financial implications that can result from a cyberattack.
Customer Trust and Communication
The frustration expressed by MGM’s patrons on social media highlights the need for clear and timely communication during such incidents. New businesses must have a crisis communication strategy in place to maintain customer trust during unforeseen circumstances.
The upcoming SEC cyber disclosure rules emphasize the growing regulatory focus on cybersecurity. New businesses must stay abreast of such developments and ensure compliance to avoid potential penalties and reputational damage.
In conclusion, the MGM Resorts cyberattack offers valuable lessons for new businesses. It underscores the need for strong cybersecurity measures, effective crisis communication, and regulatory compliance. By learning from such incidents, new businesses can better prepare themselves to navigate the challenges of the digital age.