Casino Rancho Mesquite Sued in Class Action Due to Alleged Large-Scale Data Leak
Local casino company Rancho Mesquite Casinos is under fire for inadequate data security, resulting in a cyberattack that stole the personal information of over 200K customers and employees. This accusation comes from a recent class action lawsuit filed in the US District Court for the District of Nevada.
A significant cyber intrusion hit the company's systems around November 9, 2022, allowing hackers to access sensitive data like full names, Social Security numbers, and driving license numbers. Financial account numbers and credit card numbers may also have been compromised, according to the lawsuit.
Rancho Mesquite manages the Rising Star Sports Ranch Resort in Mesquite and The Brook in Seabrook, NH, as well as the Eureka casinos in Las Vegas and Mesquite. However, it's important to note that the Eureka casinos have separate owners, and their data system wasn't affected by the breach.
Interestingly, the Eureka casino was sold to employees in 2015, and an employee share option scheme (ESOP) was set up in 2016.
Late Response
Not only was Rancho Mesquite's data protection and cybersecurity lacking, but the lawsuit also alleges that the company took an excessively long time to notify customers of the breach.
Impacted individuals were informed about the breach and the potential compromise of their data around December 9, 2022 - a full month after the incident occurred. This delay can be costly, as research by US consumer group Consumer Reports suggests.
As Consumer Reports put it, swift notification is crucial in helping consumers keep a close eye on their credit card statements, suspicious emails, and even freeze their credit reports. Delays in notification can prevent consumers from taking necessary steps to protect themselves.
Potential Threats
The plaintiffs argue that the breach exposed customers to potential fraud both now and in the future, along with excessive spam calls, texts, and phishing emails.
The lawsuit asserts, "Plaintiff and class members now face a substantial risk of out-of-pocket fraud losses such as loans opened in their names, medical services billed in their names, tax return fraud, utility bills opened in their names, credit card fraud, and similar identity theft."
The complaint accuses the company of negligence and breach of contract and requests a jury to award class members monetary damages and order Rancho Mesquite to strengthen its security measures. As of now, the company has not responded to requests for comment.
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