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ThreatMetrix Cybercrime Report, a prominent anti-cyberattack corporation, released data this week showing that “identity spoofing” is the most common way gambling companies are attacked by hackers. Spoofing uses stolen data to collect cash, banking information, and passwords from individuals and companies alike.
The term spoofing might seem like something humorous, but the activity is one of the greatest threats to the global online gambling industry. The BBC describes spoofing as “falsifying the original of an Internet communication to mislead the recipient”.
Because the online gambling community includes 2 billion player accounts, gaming operators are particularly vulnerable to spoofing attacks. The sheer number of casino, poker, and sports betting accounts make it difficult — if not impossible — for companies to verify every gambler as real and not fake.
ThreatMetrix Cybercrime said that identity spoofing attacks were up 27% in the online gambling industry over the past year alone.
What Is Identity Spoofing?
Spoofing allows collusive play on player-versus-player (PVP) games like poker. An identity thief can use a spoofing attack to get control of an inactive player’s account, then collude between the two or more accounts to have better information on the card game.
Spoofing also allows hackers to take control of self-excluded accounts. While a player thinks he or she is on a self-exclusion list and therefore does not pay attention to their activity, the identity thief uses their account information to play with no-risk cash. Such players return to find their account drained, thus leading to another trauma for the problem gambler and bad publicity for the industry.
Malicious Account Takeovers (ATOs)
Some spoofers conduct malicious account takeovers (ATOs), where the cyber-attack targets the accounts of company employees. This allows for credential stuffing, so the hacker can communicate with customers under the (seeming) name of the company itself. With such credentials, a wide range of scams can be perpetrated — once again ruining the finances of the gambler and the reputation of the gaming operator.
Infosecurity discussed how ATOs lead to massive business email compromise (BEC) in a wide range of fields. From April 2018 to June 2018 alone, cyber-security researchers located 60 different business email compromise attacks in 50 different industries.
The study found that BEC attacks can come from anyone in an organization. Only 6% came from the CEO of a company, while 27% came from someone in departments which handle sensitive information. A full two-thirds of BECs come from people in the wider company. While those might be less effective, BECs are a threat to Internet users.
How Business Email Compromise (BEC) Works
Kacy Zurkus of Infosecurity wrote, “Some attackers try to use the hacked email account to launch phishing campaigns that will go undetected, some attackers steal credentials of other employees and sell them in the black market, and others use the account to conduct reconnaissance to launch personalized attacks.”
“The most sophisticated attackers steal the credentials of a key employee (e.g., CEO or CFO), and use them to launch a business email compromise (BEC) attack from the real employee’s email address.”
Once again, online gambling companies are not the only targets of ATOs and BECs, but they are among the most vulnerable of online businesses when it comes to such attacks. When such an attack happens, it can damage a gaming site’s reputation for years to come.
How to Avoid Online Gambling Cyber-Attacks
Players should take precautions the way customers of other online merchants and services do. Barracuda Networks suggests players should ignore any request involving money made via email, until you verify the email is real with a person in the customer service department.
Even if an online casino sends an email for a wire transfer request signed by its acknowledged CEO and carrying its official logo, players should not accede to the request until you have an in-person conversation via phone chat or live chat — but not email conversations.
Like the occasional malware which claims to be from Google or Microsoft, big companies do not contact a person directly with requests for money. Punters must learn to distinguish general marketing emails from phishing attempts, which are much more personal and break the normal boundaries of online commerce. Personal appeals are likely to be identity spoofing by a cyber-hacker.
CASINO
BY ON November 26, 2019
Casinos Austria is at the center of a growing corruption scandal that extends to the upper reaches of the country’s political powers.
On Tuesday, Austria’s parliament launched proceedings to establish a committee to investigate allegations of corruption in what’s become known as the Casino Affair. The affair centers on allegations that government officials colluded with gambling operator Novomatic Group to open up Austria’s online gambling market in exchange for political insiders receiving plum executive posts.
Novomatic holds a 17% stake in Casinos Austria, while the government owns 33% and the Czech Republic’s Sazka Group holds the largest slice at 38%. Casinos Austria’s Win2Day brand is currently the only operator authorized to take online bets from Austrian punters.
The scandal began this spring when Casinos Austria named Peter Sidlo, a key ally of Freedom Party of Austria (FPÖ) leader and Austria’s former vice-chancellor Heinz-Christian Strache, as its new chief financial officer. Sidlo was appointed with the approval of both the government’s representatives on Casinos Austria’s board and Novomatic’s directors.
Sidlo’s appointment drew immediate criticism, given that he had no obvious qualifications for such a high position. His appointment to Casinos Austria’s board, along with another politically-connected individual, also forced Casinos Austria to ditch other board members whose terms weren’t over until 2020, forcing the company to shell out €7.5m in severance payments.
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The allegations are that Novomatic’s support for Sidlo’s appointment would be rewarded with the government opening up Austria’s online gambling market to other operators, including Novomatic, which operates online via its Malta-licensed Beatya Online Entertainment subsidiary’s StarVegas brand.
Novomatic was also said to be looking for the restoration of its land-based slots licenses that were revoked in 2015 by Vienna’s municipal authorities. In May, Novomatic teamed up with Vienna’s Chamber of Commerce to push for the right to restart its operations in the capital.
Sazka boss Robert Chvatal told local media that his company “felt a great deal of pressure to vote for a person who clearly and undoubtedly has inadequate work experience for a CFO position in such a big gambling company. Now we know why…”
In May, German media outlet Der Spiegel published sting videos secretly taped in July 2017 in which the FPÖ’s Strache discussed how to arrange illicit campaign contributions from a purported Russian billionaire. Novomatic’s name was mentioned in the video as an FPÖ contributor, but Strache acknowledged that the company contributes to all Austrian parties.
In August, Austrian authorities raided the homes of senior FPÖ and Novomatic officials, seizing phones and files. Sidlo subsequently took a leave of absence from Casinos Austria. All the politicians involved as well as Novomatic’s owner Johann Graff and CEO Harald Neumann have vehemently denied any wrongdoing.
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Other gaming operators aren’t about to let a good crisis pass them by. The Austrian Association for Betting and Gambling (ÖVWG), whose members include online stalwarts such as Kindred Group, Mr Green and Bet-at-home, issued a statement saying the scandal proved that “Austria urgently needs to rethink its gambling monopoly.”