The Justice Department has confirmed a successful thwarting by a joint US-Europe law enforcement coalition of the aims of a cybercrime syndicate. This hacker group has been inflicting significant damage upon the US’s hospitality and gaming industries, with victims including high-profile companies such as MGM.
Gaming and Hospitality Sector Faces Intense Cyberattacks
In September, MGM was hit by a debilitating cyberattack from a malware called Alphv. This led to the temporary cessation of all its digital functions, from email to hotel keycards. Indeed, nearly every digitally controlled aspect of MGM’s highly centralized multi-million-dollar business was affected.
The devastating attack led to MGM losing up to $100 million. However, despite the sizable hit, the company’s Q3 results were resilient. While the losses were recognized, they did not significantly affect the company’s financial standing.
Similar attacks on MGM and others took advantage of a specific encryption virus to harm victims. It held their data hostage and demanded ransom for its release. There were some victims who capitulated and paid ransom but others opted for law enforcement intervention instead.
This is quite an understandable response, especially since hackers used the threat of going public with confidential information to pressure victims into acquiescing to their demands. However, the FBI has developed a decryption tool that can unlock the encrypted data. It gives victims the ability to free their data from the grip of Alphv without having to give in to ransom demands.
Still, one lingering problem is the mishandling of private data online. While most companies warn their customers about the breach and advise them to remain vigilant and monitor their credit histories, the risk of private data misuse persists.
Threat of Alphv Neutralized, But Danger Still Looms
On a brighter note, the authorities have taken control of Alphv’s former official website, which was once used to publicly intimidate victims.
The FBI has divulged that it liaises with contacts in the cybersecurity world. This is done to ensure the best investigative tactics are employed, and to remain prepared for the ever-present threat of these kinds of attacks. Nevertheless, the risks for the gaming and hospitality industry are on the uptick as cybercriminal alliances are forming with the joint objective of accessing sensitive data.
Suspicions point to a Russian-speaking group, situated in Russia, as the brains behind Alphv. In Russia, foreign law enforcement has no local jurisdiction. However, the group in question is unusual in that they are believed to have joined forces with hackers who understand and speak English. This sort of cross-border cooperation is typically avoided by cybercriminals as it can potentially expose them to more hazards and information leakages.
Despite the damage sustained, MGM managed to absorb most of the impact from the cyberattack. Analysts are optimistic that such incidents will not destabilize markets since they believe the gaming and hospitality sector can effectively daily with specific industry-targeting threats.
