Cyberattack cost MGM Resorts about $100 million, Las Vegas company says
In today's digitally connected
world, one must remain vigilant to safeguard devices, info and
finances.
A hacker group called "Scattered Spider" is
behind 2 attacks against large corporations. They hacked and seized the
data of 2 large Las Vegas casinos reportedly asking for a $30 million ransom
from one to release their data.
Clorox Security Breach Linked to
Group Behind Casino Hacks.
The targeted victims employ a lot of
security safeguards, systems and personnel to prevent such attacks.
Imagine what the impact would be to
your small business or personal finances if you were hacked.
The Clorox cyberattack crisis
warrants every board’s attention. The consumer-products giant spent over $500 million on IT upgrades and earned a spot on
the 2023 Forbes Most Cybersecure Companies list. Nonetheless, an August breach
halted its operations with devastating supply chain and business consequences.
With all their sophisticated
defenses the weakest link remains to be the human factor.
The security attacks that triggered
an FBI probe shatter a public perception that casino security requires an
“Oceans 11”-level effort to defeat it.
“Hackers are always fighting for
that 0.0001% weakness,” Kim said. “Usually, that weakness is human-related,
like phishing.”
The casino attacks caused a myriad
of problems from slot machine outages and hotel operation disruptions. It
is estimated to have cost the MGM Resorts $100 million.
MGM, whose prominent casinos along
the Las Vegas Strip include the Bellagio and Mandalay Bay, were hacked last
month. The company said it deliberately shut down a number of services “to
mitigate risk to customer information.”
The shutdown had severe impacts for
MGM. Some hotel customers couldn’t use key cards to enter their rooms.
Employees were locked out of corporate emails for days. The tech news website
404 Media found entire sections of slot machines at MGM casinos roped off.
MGM said that despite system
shutdowns some customer info was accessed by the hacker group.
Rival Casino operator Caesar's
reportedly paid the hackers a ransom to go away according to a SEC filing by
the company.
For more about the casino attacks
click on the following links;
https://apnews.com/article/vegas-casinos-mgm-caesars-cyberattack-59644d2cb0f2a765770d30f268b81a11
Clorox Crisis Shows Cyber Risk’s
Harsh Business Downside
The attack on Clorox presented quite
a different set of problems. Automated systems in their manufacturing and
distribution systems were shut down forcing the company to resort to manual
processes. The attack left the supply chain compromised and both
retailers and customers were without product.
I was watching CNBC last week when
Clorox reported the incident and it's impact on quarterly sales which cause the
stock price to tumble. The financial impact for FY2024 Q1 is as follows;
·
“Order processing delays and significant
product outages” dented quarterly sales by 23-28%. That’s likely well over $500
million in lost revenue.
·
Lower gross margins are anticipated, as “the
impact of the cybersecurity attack more than offset the benefits of pricing,
cost savings and supply chain optimization [and] lower cost absorption driven
by lower volume.”
·
Quarterly earnings per share will show a loss
rather than positive result.
·
Remediation efforts and expenditures will
extend well into FY 2024.
Always double check and be wary of
both cell phone text messages and emails.
The following is an example;
I received a text today on my phone,
supposedly from USPS that my package was delayed. I needed to copy a link
and paste it into the Safari app on my iPhone. I copied the link down,
opened MS Edge on my desktop and typed the link. It brought up the USPS
website. I then entered the Tracking number and this is appeared.
However when I followed the instruction in the message and opened the same link using Apple's Safari browser, a different result.
Be careful and check everything.
