US Casino Giant MGM Resorts Battles Cyber Attack Outage

US leisure and hospitality giant MGM Resorts is grappling with a significant IT outage following a cyber attack that forced the shutdown of multiple systems across its properties. The attack commenced on September 10th, leading to disruptions in front desk and concierge services, rendering gaming floor slot machines unusable, and allegedly locking guests out of their rooms.

This incident has affected resorts nationwide, impacting some of Las Vegas's most renowned casinos on the famous Las Vegas Strip, including the Bellagio, Excalibur, Luxor, Mandalay Bay, the MGM Grand, and New York New York.

In a statement shared on X (formerly known as Twitter), MGM Resorts acknowledged the cybersecurity issue, stating, "Promptly after detecting the issue, we quickly began an investigation with assistance from leading external cybersecurity experts. We also notified law enforcement and took prompt action to protect our systems and data, including shutting down certain systems. Our investigation is ongoing, and we are working diligently to determine the nature and scope of the matter."

As of now, MGM's main website remains inaccessible, and guests are encouraged to contact the company via telephone. The firm has affirmed that its resorts, encompassing dining, entertainment, and gaming services, are operational and denied claims of guests being locked out of their accommodations.

The precise nature of the breach has not been disclosed, but the shutdown of multiple systems strongly suggests efforts to contain a potential ransomware attack. MGM Resorts' actions in taking systems offline are seen as a measure to prevent active attackers from spreading malware and pivoting within the network.

Ryan McConechy, CTO of Barrier Networks, noted that this was a costly move, causing significant financial losses for MGM as downtime persisted. Effective network segmentation can help mitigate such extensive downtime.

Erfan Shadabi, a cybersecurity expert at Comforte AG, emphasized that the incident reflects broader cybersecurity challenges within the hospitality sector. As the industry increasingly relies on interconnected systems and data-driven processes, it becomes an attractive target for cybercriminals. Shadabi urged the tourism industry to allocate resources to enhance its cybersecurity posture.

A recent report by Trustwave's research unit SpiderLabs revealed that 31% of hospitality organizations have reported data breaches, with 89% experiencing multiple breaches in a year. The report identified unique cybersecurity challenges in the sector, including a seasonal workforce, high turnover of users, public-access networks, and physical security issues.

Despite these challenges, the hospitality sector continues to adopt new technologies like generative AI and contactless payments, increasing its cybersecurity risk. Maintaining security while offering cutting-edge technology remains a critical balance for the industry.