Caesars, MGM Resorts Weren’t the Only Targets of Scattered Spider Hackers

Article by : Erik Gibbs Sep 22, 2023

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According to a security executive familiar with the matter, hackers who recently breached the casino giants MGM Resorts International and Caesars Entertainment also infiltrated the systems of three other companies in the manufacturing, retail and technology sectors.

David Bradbury, the Chief Security Officer of identity management company Okta, revealed that five of Okta’s clients, including MGM and Caesars, fell victim to hacking groups known as ALPHV and Scattered Spider since August.

While Bradbury did not disclose the names of the other affected companies in his interview with Reuters, he mentioned that Okta was collaborating with official investigations into the breaches.

These cyberattacks have drawn renewed attention to ransomware attacks, which impact hundreds of companies yearly, from healthcare providers to telecom firms.

The stock prices of MGM and Caesars plummeted last week, leading to significant market value losses. MGM is still grappling with operational disruptions at its hotels and gaming venues, extending from Las Vegas to Macau.

Okta, headquartered in San Francisco and boasting over 17,000 global customers, specializes in identity services like multi-factor authentication, aiding users securely accessing online applications and websites.

The company had identified multiple breaches at its customers in the past month, prompting Bradbury to issue an alert.

Bradbury stated that they noticed these events unfolding rather quickly and deemed it crucial to step forward and clarify the situation for the wider industry. Bringing it up at an industry level was to warn peers of the risks all companies face due to these attacks.

Experts predict that MGM Resorts International may be experiencing a daily revenue loss ranging from $4.2 million to $8.4 million.

All of this also comes with a cash flow decrease of about $1 million per day while it remains under a cyberattack, as a gaming industry analyst estimated.

After over eight days of being attacked, there are no evident signs that MGM is regaining control of its operation due to the cyberattacks.

While businesses often insure against losses from fires, on-site injuries and even hurricanes, the financial losses stemming from cybersecurity attacks are significant. And now, that is the case with major players in the gaming industry, such as MGM.