After a cybersecurity issue at MGM Resorts (NYSE:MGM) earlier this week, today, casino and entertainment major Caesars Entertainment (NASDAQ:CZR) has confirmed suspicious activity in its IT network stemming from a social engineering attack on Caesars’ outsourced IT support vendor.
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The incident did not impact Caesars’ customer-facing operations, and the company undertook containment and remediation measures to reinforce the security of its IT network. Furthermore, the company noticed a data breach of its loyalty program database and is investigating the extent of the information that was accessed.
Additionally, Caesars has taken steps to ensure that the stolen data is deleted. The company conceded that it has incurred certain expenses associated with the attack but does not expect the incident to materially impact its financials.
According to the Wall Street Journal, Caesars has paid nearly $30 million in ransom to the hackers, although the company did not specify any amount in its latest filing.
Shares of both companies are up by double digits for the year so far. Additionally, the Street sees a strong upside of over 30% in both names.
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