Hackers Attack Caesars' Rewards Customer Information: Company's Warning
Caesars Entertainment, a giant in the gaming industry (NASDAQ: CZR), admitted to experiencing a cyber assault recently. Their target was the renowned Caesars Rewards database, along with other crucial forms of data. The company disclosed this scandal in a Form 8-K submission to the Securities and Exchange Commission (SEC). This revelation was prompted by speculations suggesting Caesars endured a detrimental cyber event prior to MGM Resorts International (NYSE: MGM) experiencing the same fate. One rumor claimed Caesars paid the hacker gang, dubbed "Scattered Spider" or UNC 3944, a massive sum of $30 million. The 8-K filing, while not confirming this amount nor naming the hacker group, hinted that costs related to the heist may have been incurred.
The SEC has recently mandated disclosing significant events, such as plant blazes or storms obstructing operations, to investors. Hence, companies like Caesars must keep investors informed when such instances occur.
Caesars Rewards: The Cybercriminals' Ultimate Prize
Caesars Rewards numbers over 65 million members, making it the most substantial loyalty program in the gaming industry. This makes it a prime target for hackers.
The gaming company's regulatory filing confirmed that the black hat hackers managed to get a hold of sensitive data, including passport and Social Security numbers, for a vast number of members in the database. However, they did not steal a member's PIN, bank account details, or payment card numbers, as per the company's assertions.
To ensure the pirated data is eliminated, Caesars has attempted to work with "the unauthorized actor," although they can't provide a guarantee. The operator also mentioned that they have not discovered any signs of the data being misused online.
As a blatant result of the cyber breach, Caesars is offering complimentary credit monitoring for their customers. For this service, one can dial (888) 652-1580.
Are Ransomware Costs 'Material'?
The term "material" is subjective. Given that Caesars paid, reportedly, $30 million to "Scattered Spider"—the company never confirmed this—such a large sum wouldn't make a significant dent in a corporation with a market capitalization of $11.27 billion.
Caesars' mitigation of the ransomware hack must be made public, as they're not portraying the event as disastrous.
"Although we are unable to anticipate the full impact of this incident on clients' actions in the future, including whether a shift in their behavior would negatively hit our financial position and performance, we currently expect that it will not exert a detrimental material impact on the Company's financial condition and results of operations," Caesars acknowledged in the public statement filed with the SEC.
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