The latest MGM Resorts ransomware attack demonstrates why cyber insurance is critical as part of a multi-layered security strategy. In our last blog, we discussed the recent Las Vegas cyber incidents and how no organization is completely safe.
The original cyber incident at MGM Resorts occurred on September 10, 2023 — nearly two weeks ago now – and the company and its valued customers are still feeling its effects. Unfortunately for MGM, the ransomware attack went extremely deep, impacting its computer systems, disrupting its operations, and causing problems with gaming machines, online room booking, digital keys, card payments, and customer accounts.
To reduce the financial exposure of a ransomware attack many organizations opt for the safety net of cyber insurance. This powerful tool should be part of a comprehensive security strategy to mitigate the risk associated with cyberattacks and data breaches. While we don’t know whether MGM Resorts had this insurance, if they did, it would be a game-changer when trying to recover from the financial and reputational damage caused by the attack.
With cyber coverage, you’re likely to get reimbursed for ransom payments (if you decide to pay them), data recovery costs, lost income due to business interruption, customer notification expenses, public relations costs, legal fees, and settlements. Cyber insurance can also help companies like MGM rebuild its reputation and regain customer and partner trust.
“Cyber insurance is one option that can help protect your business against losses resulting from a cyber attack.”
– United States Federal Trade Commission
According to CSO Online, cyber insurance policies may vary, but they typically include:
- First-party coverage: This takes care of your business’s own costs related to data recovery, ransom payments, business interruption, crisis management, legal fees, fines, and penalties.
- Third-party coverage: This shields you from liability claims from third parties, such as customers, vendors, or regulators, who might sue your business for damages or losses resulting from the cyberattack or data breach.
While the investigation into the MGM cyber-attack unfolds, remember that managed security companies, like 11:11 Systems, can also play a pivotal role in reducing the risk of such events. They can also assist companies in obtaining and qualifying for cyber insurance with a variety of managed security services.
What’s more, a managed security vendor like 11:11 brings the expertise needed for risk assessments, mitigation, compliance, and bolstering security measures. They’ll also help you craft incident response plans and provide ongoing monitoring and reporting — critical steps in securing or maintaining cyber insurance.
To dive deeper into 11:11’s suite of managed security solutions, ransomware insights, or compliance information, check out the resources below.
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