MGM Resorts Expects $100 Million Cost Due to Data Breach
MGM Resorts, based in Las Vegas, has revealed that the recent data breach it experienced is anticipated to cost the company over $100 million. The cyberattack, detected on September 10, led to the temporary shutdown of some casino and hotel computer systems across the United States in an effort to safeguard data. Customers reported difficulties with credit card transactions, cash machine access, and hotel room entry. MGM has stated that its operations have returned to normal, with the majority of systems restored. While no customer bank account or payment card information was compromised, personal data such as names, contact information, driver's license numbers, Social Security numbers, and passport numbers were stolen. MGM will offer impacted customers free identity protection and credit monitoring services. The data breach is expected to have a negative impact on MGM's third-quarter financial results, particularly in Las Vegas, but minimal impact in the fourth quarter and operational results for the year.
Implications of MGM Resorts' Data Breach for New Businesses
The recent data breach at MGM Resorts, which is expected to cost the company over $100 million, serves as a stark reminder of the potential financial and reputational risks associated with cyberattacks for new businesses.
Financial Impact of Cyberattacks
The anticipated cost of the breach underscores the significant financial implications of such incidents. For new businesses, particularly those in the early stages of growth, a similar event could have devastating consequences. It's not just the immediate costs associated with responding to the breach and restoring systems, but also the potential loss of business and customer trust that can have a long-term impact on revenues.
Importance of Cybersecurity
The MGM breach highlights the importance of robust cybersecurity measures. New businesses must prioritize investment in cybersecurity to protect not only their operations but also their customers' data. This includes regular system updates, employee training, and the implementation of advanced security measures.
Finally, the way MGM has handled the breach, by offering impacted customers free identity protection and credit monitoring services, points to the importance of reputation management following such incidents. New businesses must have a crisis management plan in place to respond quickly and effectively to any data breaches, to minimize damage and reassure customers.