Arrest made in MGM Resorts $100 Million Hacking Attack
Teen from England Out on Bail After Being Taken into Custody
Police arrested a suspect in the hacking attack that cost MGM Resorts around $100 million in 2023. The alleged perpetrator, a 17-year-old from Walsall, England, has drawn significant attention due to his involvement in the BetMGM 2024 cyber attack.
The unidentified individual is out on bail but faces suspicion of blackmail and computer misuse act offenses. The investigation is ongoing.
#ARREST | We have arrested a 17-year-old boy from Walsall in connection with a global cyber online crime group which has been targeting large organisations with ransomware and gaining access to computer networks.
Full story: https://t.co/letcjIqiTD pic.twitter.com/7jRGoTawAW
— West Midlands Police (@WMPolice) July 19, 2024
Some background: MGM owns more than two dozen hotel and casino locations around the world, as well as an online sports betting arm (MGM Bets). A “cybersecurity issue” affected some of its systems in September, forcing the company to shut down that area to “protect our systems and data.” Caesars also suffered from the BetMGM 2024 cyber attack.
One guest at an MGM hotel said room keys did not work and staff had to hand out actual keys so people could enter their rooms.
The hacking group Scattered Spider is believed to have done the damage. MGM announced on September 20 that its hotels and casinos were “operating normally” again. MGM filed a report with the SEC, stating the BetMGM 2024 cyber attack cost it around $100 million. The investigation was painstaking and criticized but resulted in one arrest.
POLICE ISSUE STATEMENT
Per West Midlands Police:
We have arrested a 17-year-old boy from Walsall in connection with a global cyber online crime group targeting large organisations with ransomware and gaining access to computer networks. The BetMGM 2024 cyber attack is one of the significant cases under investigation.
Officers from our Regional Organised Crime Unit for the West Midlands (ROCUWM) joined officers from the National Crime Agency, in coordination with the United States Federal Bureau of Investigation (FBI), to make the arrest at an address in the town on Thursday (July 18).
Police took the suspect into custody on suspicion of Blackmail and Computer Misuse Act offenses and released him on bail while we continue our inquiries.
We also recovered evidence at the address, including a number of digital devices which will undergo forensic examination.
The arrest is part of a global investigation into a large-scale cyber hacking community targeting several major companies, including MGM Resorts in America.
A member of the authorities in the UK commented, “This arrest follows a complex investigation which stretches overseas to America,” said Detective Inspector Hinesh Mehta, Cyber Crime Unit Manager at ROCUWM. “We have been working closely with the National Crime Agency and FBI.
“These cyber groups have targeted well-known organisations with ransomware and have successfully targeted multiple victims around the world, taking significant amounts of money.”
“We want to send out a clear message that we will find you. It’s simply not worth it.”
The FBI took to social media:
Today, the #FBI joins the UK’s @NCA_UK, @WMPolice, and @ROCUWM to announce the arrest of an individual connected to a global cybercrime group which has victimized major companies, including MGM Resorts. Read more about the arrest here: https://t.co/8Vq8BIDf3V pic.twitter.com/AshG1Om0ts
— FBI (@FBI) July 19, 2024
MGM COMMENTS
BetMGM Resorts issued a statement:
“We’re proud to have assisted law enforcement in locating and arresting one of the alleged criminals responsible for the cyber attack against MGM Resorts and many others. We know first-hand the damage these criminals can do and the importance of working with law enforcement to fight back. The BetMGM 2024 cyber attack highlights the necessity of our collaboration. By voluntarily shutting down our systems, refusing to pay a ransom and working with law enforcement on their investigation and response, the message to criminals was clear: it’s not worth it.”
In 2019, one of the company’s cloud services was breached, and hackers stole more than 10 million customer records. People’s names, addresses and passport numbers were taken.
PC Mag reported in June that police in Spain arrested a 22-year-old British national suspected of being the organization’s leader, marking the first arrest directly tied to the attack on MGMand Caesars. In January, the US also charged a 19-year-old Florida man who is possibly connected to Scattered Spider.
