Caesars Entertainment and MGM Resorts International have recently been on the receiving end of devastating cyberattacks. The latter was compelled to temporarily suspend operations of many of its systems, while Caesars reportedly negotiated a deal with the cybercriminals. The issues for the gambling industry bigwigs are far from over, with fresh lawsuits suggesting they fell short in protecting crucial guest data.
A series of five class-action suits were submitted in the District Court of Nevada. The plaintiffs assert that the customer information connected to the loyalty campaigns was jeopardized during the breaches, condemning the casinos’ negligence.
As stated by the litigants, both Caesars and MGM were fully conscious of the significance of customer data, yet, the protective measures were insufficient which led to violation of Federal Trade Commission protocols. Due to these breaches, some customers of these casino enterprises, who have had their data compromised, may potentially be susceptible to identity theft.
Customers Facing Potential Threat of Identity Theft
Two cases were filed against Caesars by Stranch, Jennings, and Garvey. The plaintiffs in the Stranch litigation are Alexis Giuffre from Illinois, and Paul Garcia from Colorado, both dedicated patrons of Caesars. In addition, Thomas and Laura McNicholas, another pair of loyal customers from Illinois, have filed a lawsuit through the O’Mara Law Firm.
Kopelowitz Ostrow Ferguson Weiselberg Gilbert initiated two distinct lawsuits against MGM Resorts, representing Emily Kirwan and Tonya Owens, two from Louisiana and Mississippi respectively.
These plaintiffs will now pursue compensation due to the potential risk the inattentiveness of Caesars and MGM Resorts has subjected them to.
Statements regarding the issue are yet to be given by both the plaintiffs and the two casino enterprises.
MGM Resorts Embarks on its Path to Recovery
Initially coined as a “cybersecurity problem,” the assault compelled MGM Resorts to temporarily disable many of its systems. As a consequence of the breach, credit rating agency Moody’s cautioned MGM about a potential downgrade in its credit standing. The casino firm refrained from making any comments at the time.
In the wake of the attack, MGM Resorts is persistently working to restore its operations. The company’s computing systems are currently functioning effectively, with most of their other operations back up and running as well.
However, MGM and Caesars weren’t the sole victims of the cyber breach. ALPHV and Scattered Spider groups have reportedly targeted three more unidentified companies, using social engineering tactics to extract valuable data and demanding payment of a ransom from the victims, according to Okta.
