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Report: FBI Struggles With Casino Hacking Investigation

Some Suspects Are Reportedly Operating In U.S.

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After recent hacking incidents at MGM Resorts and Caesars Entertainment casinos, some in the cybersecurity industry are wondering why the FBI still hasn’t made any arrests. Several tech companies have continued investigating the issues and have revealed that some involved with the “Scattered Spider” hacking group actually live in the United States.

The firms have even shared the names of some of those involved with the FBI, according to recent reports. The hacks cost the companies millions of dollars and some experts are questioning the pace of the federal investigation.

“I would love for somebody to explain it to me,” CrowdStrike President Michael Sentonas told Reuters. The firm is one of several studying the security breaches. “For such a small group, they are absolutely causing havoc.”

No Arrests Yet

According to some in the industry, the FBI has known the names of more than a dozen of the hackers for more than six months. Sentonas described the investigation as a “failure” considering that no arrests have yet to be made.

FBI officials have said agents are still investigating the cases. Neither the agency nor the Department of Justice have offered an update on where things stand.

Scattered Spider has been active since 2021. The MGM Resorts breach left the company crippled for several days and cost more than $100 million in lost revenue and various charges related to the attacks. Caesars chose to pay a $15 ransom to regain control of the company’s computer systems.

Growing Concerns

Along with CrowdStrike, some of the other companies looking into the hacks include Alphabet’s Mandiant, Palo Alto Networks, Microsoft, and others. Insiders believe more than 200 companies have been hit by the group since Scattered Spider’s inception.

Some of those involved with the firms’ investigations note that the FBI has lost technology experts in recent years to the private sector, which could hamper these types of operations. Many victims are also hesitant to come forward and detail their companies’ own breaches.

“Law enforcement, certainly at the federal level, has all the tools and resources they need to be successful in going after cyber criminals," ZeroFox CEO James Foster told Reuters. “They just don’t have enough people.”