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A closer look at the theft of 649,000 player details from Paddy Power

Monday August 11,2014 :  ANATOMY OF A SECURITY BREACH
 
A closer look at the theft of 649,000 player details from Paddy Power.
 
One of the biggest data breaches in online gambling history - the theft of 649,000 player details from online gambling group Paddy Power ) - has been examined in detail by the Bloomberg business news service, which reveals:
 
* In 2010 (when the theft is believed to have occurred) Paddy Power technicians detected what they thought was "malicious activity."
 
* Three years later, in December 2013, a Canadian affiliate marketer and entrepreneur called Jason Ferguson (45) came across an offer of a player database for sale (something he claims is commonplace on the internet) from an unknown seller apparently based in Malta. The parties negotiated the sale of the database for Euro 6,700 and Ferguson took delivery and presumably used the content in his endeavours to market to players or sell the database on.  He claims he was not aware that the database was stolen, and that he did nothing wrong.
 
* Earlier this year data breach consultant Joe Saumarez Smith became aware of Ferguson's database whilst investigating another and unrelated issue. He contacted Ferguson, who convinced him of the value of the database and sent him a sample to clinch a sale.
 
* After examining the sample, Saumarez Smith suspected that it may be the property of Paddy Power, and he handed it over to the betting company, which immediately tasked a special team to analyse it. They confirmed that it was Paddy Power material.
 
* In collaboration with the Ontario courts and police, Paddy Power's legal representatives then obtained court orders for the search of Ferguson's bank account and his computer equipment.
 
* Ferguson's shock on July 7, when a posse descended on his home office with the court orders can only be imagined. He cooperated, and a hard drive was seized, wiped clean of the Paddy Power information, and returned to him (he has since destroyed it, saying he wants nothing more to do with the issue).
 
The police found no evidence that might indicate criminal or malicious activity on Ferguson's part, and he has not been prosecuted.
 
Paddy Power had the embarrassment of belatedly having to tell players about the breach, which received wide media coverage.
 
In a statement posted on its website on July 31st, the company revealed the breach for the first time publicly, and started alerting the 649,000 customers affected. While the data didn’t include account passwords or financial information, and would not have allowed access to customer accounts, the company apologised.
 
The betting company was also severely criticised by Ireland’s Data Protection Commissioner for not reporting the breach timeously.
 
“I am very disappointed that it has taken until now for Paddy Power to inform its customers,” Minister for Data Protection Dara Murphy said in a statement. “While it’s not mandatory to report such breaches, it is recommended best practice.”

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Gambling News :

Tain Fast Bet - Our readers will recall Tain recently increased the number of live events it covers each month to 23,000, covering both traditional markets such as football, tennis and US sports and the more obscure curling, biathlon and Water Polo.

Olympic Entertainment Group Mobile Gaming - In its full-year 2016 report, Olympic Entertainment Group (OEG) has informed the establishment of a Malta-based company registered to facilitate its intended expansion into remote gambling.

Circus Evolution HD Slot - Malta-based content provider World Match has released its first title of 2017, “Circus Evolution HD”, a 5-reel, 3-row, circus-themed adventure offering Free Spins, Wilds and a Bonus Game.

Kindred Group Gets EU Recommendation on Consumer Protection - Kindred Group (formerly Unibet) has become the first operator to successfully meet the requirements of the EU Recommendation on Consumer Protection and Responsible Gambling following an external audit.

17 Crown people still detained - Reports from China over the weekend suggest that the 17 Crown people still detained could be looking at another twelve months of imprisonment as investigations into their alleged and still unspecified crimes drag on

SB1400 Virginia Poker Skill Game Bill - Her bill SB1400 is currently with the Senate General Laws and Technology Committee, whose 15 members will decide whether to progress it or condemn the Senator to another year of failure.

Pennsylvania Video Gaming Association - With the focus on Pennsylvania as the most likely next US state to legalize online gambling as part of a general gambling expansion measure, reporters noted this week the emergence of a new lobbying group in the state - the Pennsylvania Video Gaming Association.

Stiffer Problem Gambling Penalties in UK - The Guardian newspaper reports that the UK Gambling Commission plans to unveil new enforcement strategies on problem gambling and money laundering prevention this month, laying down tougher penalties for operators who fail to tackle these issues.

Malaysian police Destroy over 5000 Gambling Computers - Malaysian police in Kajang have destroyed 5,042 computer sets seized in online gambling raids over the past two years, explaining that the action is designed to take the machines out of circulation.

Spartan Poker vs SpartanPoker name War - Pokerguru, which owns the brand SpartanPoker.com, has threatened to sue the Indian Poker Championship over its use of the title Spartan Poker, and recently published a notification that it is not associated with the IPC version of the brand.

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