[ad_1]
Post date: April 11, 20,24 at 12:56h
Last Updated: April 11, 20,24 at 12:56h
Federal Trade Commission’s (FTC’s) investigation into the casino giants’ response to 2023’s cyber breach continues. The hack caused havoc in MGM Resorts International’s domestic operations.
In January of this year, the FTC sent the Las Vegas-based gambling company a civil investigative demand (CID), which requested a number of documents and data pertaining to the incident. MGM then filed a motion in the following month to quash this CID.
Staff attempted an unprecedented move to invoke Safe Guards Rule and Red Flags Rule that do not pertain to MGM. MGM, in spite of its efforts to reach an informal resolution with Staff and for these reasons, was forced to file a Petition to Limit or Quash.
The cost of a cyber attack in September 2023, perpetrated by “Scattered spider”, a group consisting of both domestic and international hackers. Bellagio Operator $100 Million Third-quarter Earnings Before Interest, Taxes, Depreciation, Amortization, Rent Costs (EBITDAR), and $10 Million in One-Off Legal and Other Expenses.
Rival Caesars Entertainment has paid Scattered Spider Pay $15 Million To end an independent cybersecurity incident. MGM adhered to FBI guidelines and did not compensate the bad actors.
MGM’s Bad luck
The FTC’s Chairwoman Lina khan and several employees attempted to check in at the MGM Grand, on the Las Vegas Strip, last September. At the time the company was dealing with a cyber-attack.
According to news reports, Khan and over 40 other guests had to write down their credit card number on paper in order to give it to the front desk employees of the casino hotel. Khan reportedly asked an MGM Grand employee what steps the company took to safeguard customer information.
Although it’s unlikely the FTC used the safe-guard and red-flag regulations to investigate MGM, there could be other things the gaming firm has to worry about.
The FTC can leverage MGM’s reputation to its advantage. slack cyber defenses Before the attack, it was hacked. BitSight, an analytics and ratings company specializing in cybersecurity, gave MGM a “F” grade for its patching frequency.
Cosmopolitan Operator also Cyber attacks in 2019 In 2022, eight gigabytes worth of stolen customer data will be posted to a messaging service.
MGM says it’s a victim, CID places it in a bad spot
MGM claimed that, as a victim of crime with a legitimate and intense interest in the prosecution of the accused perpetrators, it filed judicial review to have the CID quashed.
The company stated that it has been working with law enforcement, and the FTC CID request also includes a demand for criminal data that may jeopardize investigations. MGM is convinced that this was an intentional request by the FTC.
Staff demanded that MGM provide any and all information MGM had provided previously to the Federal Bureau of Investigation (“FBI”) as soon as possible. MGM’s legal document says that the Staff should not be allowed to access this material until after the prosecutions have concluded.
[ad_2]
