MGM Resolves FTC Altercation via Significant Monetary Settlement

MGM Resolves FTC Altercation via Significant Monetary Settlement

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MGM Resorts turned heads with a hefty settlement payout of $45 million to the Federal Trade Commission (FTC). This following a major data breach in 2023, which saw the personal details of a whopping 37 million customers exposed. If you were one of the unlucky souls affected, you've likely received an email notification, and you're now eligible to claim compensation.

Compensation varies, depending on the degree of exposed personal information. Were your Social Security numbers compromised? Your payout just skyrocketed to $75. Revealed passport or driver's license numbers? You're looking at $50. Just an address and birthdate leaked? You'll get a cool $20.

To secure your rightful payday, use the unique ID and PIN provided in your email. And worry not, MGM's offering a whole year of free credit monitoring for the luckier ones. Time's ticking, with the filing deadline landing on June 3.

But this data breach isn't MGM's only recent hurdle. In October 2023, the casino giant fell victim to a cyberattack. Scattered Spider, the culprits, infiltrated systems at both Caesars Entertainment and MGM Resorts. Caesars apparently coughed up a cool $30 million to avoid further chaos. In MGM's case, they dug their heels in and declined to pay the ransom. In response, the hackers shut down slot machines, hotel systems, and various other operations tied to MGM's internal networks.

For days, MGM found themselves running blind, dealing with slot machines and 36,000 hotel rooms that weren't functioning. CEO Bill Hornbuckle described the mess, saying, "We found ourselves in an environment... We were completely in the dark. Literally, the telephones, the casino system, the hotel system - and I could go on and on and on - were not functioning. And so... you put the company to the test."

Eventually, MGM recovered and restored its systems following widespread reformatting and server replacements. That didn't come cheap, though. The breach resulted in losses of around $100 million, according to MGM's filing with the Securities and Exchange Commission.

Before this settlement, the FTC had requested extensive documentation from MGM, including details on past security incidents, identity theft protections, and procedures. Unhappy with this request, MGM fired back with a lawsuit, challenging the commission's claim. This legal trip-up is now firmly in the rearview mirror, as the new agreement puts an end to the dispute.

This damaging data breach and settlement cap off a string of disruptions hitting the corporate world, as economies grapple with broader global instability. In the very same week that MGM struck the FTC deal, markets around the globe tussled with trade tensions, witnessing declines as steep as 10%, with Bitcoin sinking below $77,000. The world of crypto saw further declines, with Ethereum and XRP taking hits of over 15%. So, remember to watch your backs - your data and currency are at stake.

1. After a major data breach in 2023 that exposed the personal details of 37 million customers, MGM Resorts agreed to pay a settlement of $45 million to the FTC.
2. In a separate incident in October 2023, MGM Resorts fell victim to a cyberattack by Scattered Spider, causing disruptions to their slot machines, hotel systems, and internal networks.
3. The FTC had previously requested extensive documentation from MGM, including details on past security incidents, identity theft protections, and procedures, but this legal dispute has now been resolved with the new agreement.
4. The Las Vegas casino culture has been impacted by these events, with MGM Resorts experiencing losses of around $100 million due to the cyberattack.
5. In an effort to prevent future data breaches and cyberattacks, MGM Resorts has agreed to invest in cybersecurity, particularly in data-and-cloud-computing and technology, a key aspect of the casino-and-gambling industry.
6. As economies grapple with global instability, the world of crypto has also been affected, with Bitcoin, Ethereum, and XRP experiencing significant declines, emphasizing the importance of safeguarding not just casino-games data, but also individual and financial data in the digital age.

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