Caesars Entertainment Inc. Pays Hackers Millions to Prevent Data Leak

Caesars Entertainment Inc., a major casino and entertainment company, reportedly paid a large amount, estimated to be in the tens of millions of dollars, to hackers who recently breached their systems. The hackers demanded payment and threatened to release sensitive company data if their demands were not met. This information comes from two individuals who are knowledgeable about the situation.

It is expected that Caesars will officially disclose details of the cyberattack in an upcoming regulatory filing. This announcement closely follows the news that MGM Resorts International, another prominent Las Vegas entertainment player, also fell victim to a cyberattack earlier this week.

Despite requests for comment, Caesars Entertainment has not responded regarding the matter. The news of the cyber incident led to a 2.7% drop in the company’s shares, trading at $52.35 on Wednesday.

The group responsible for the cyberattack on Caesars, known as “Scattered Spider” or UNC 3944, has been identified by sources. These hackers are skilled in social engineering techniques, which allowed them to gain unauthorized access to large corporate networks. In the case of Caesars, the breach began with an attack on an external IT vendor before successfully infiltrating the company’s internal network.

The cybercriminals began targeting Caesars as early as August 27, as revealed by one individual familiar with the situation. This suggests that the attackers had been operating within the company’s systems covertly for a significant period before making their payment demands and threats of data exposure.

Credits: Bloomberg