MGMGrand.Com Not Hacked, But...

OK. For what it's worth, I got the scoop on the $69-a-night rates at the MGM Grand that "several hundred" people tried to enjoy. See here for the background. I'm not sure how satisfied y'all will be about it, but here's the deal, per Alan Feldman, senior VP for MGM Mirage.

First off and perhaps most importantly, the site was not hacked or breached. "That's either a very, very poor choice of words on a reservationist's part or someone just did not understand what happened. This had nothing to do with hacking," Feldman said. So rest assured if you were worried about identity theft or some other compromising Internet situation related to your personal data.

Then what actually did happen? According to Feldman, the MGM Mirage created the $69-a-night MGM Grand rate code for a mailer that was either about to or just went out to selected members of the company's slot club. It was "a closed-loop kind of thing," intended for a relatively specific, small group of people.

"Just prior to the mailer's arrival, someone figured out the code -- there are code phishers out there -- and we don't really know how, but someone got ahold of the code," Feldman said.

It was then circulated online. Feldman said it's difficult to figure out where it was posted first or by whom, but he said some postings indicated that whoever was passing around the information at first knew that it was intended for slot club players because those postings instructed people to go to the casino cage and sign up for a slot club card before checking in. That is, it offered a work-around.

The MGMGrand.Com folks realized the problem because the mailer hadn't actually landed yet and many who were booking under the special rate were not on the list of those who were supposed to get the mailer. The reservations have been canceled, emails are going out and some phone calls are being made. You may need to call to address it if you've been canceled.

"We discovered very quickly that people who had no connection to this code were using it," Feldman said. "The names and reservations were not matching up with who we sent it to."

Feldman said reservationists have been in contact with dozens of the hundreds who tried to use the code and that almost all have rebooked under a different rate, usually a promotional one that is just higher than $69. He said one cheap rate available to the general public is $89 a night when available and many took that.

"We'll work with every guest on a one-on-one basis," Feldman said. "Of those we've gotten to in the first 24 hours, only a few went elsewhere, I'd say in the single digits. One person was upset enough to say 'I'm going to call a lawyer.' Everyone else understood that the code they used was one that they did not have the authority to use."

I did ask Feldman why the company did not feel obliged to honor the rate for those who booked and he said that it was a special offer for a select group of people and not an error in a general mailer or something for all comers.

Any thoughts?