Feeds

Gambling software firm takes $1.3m charge for security breach

Crackers reprogrammed online slot machines

  • alert
  • submit to reddit

New hybrid storage solutions

Cryptologic, the gambling software firm, is taking a a $1.3m charge for a fraud on its system perpetrated by hackers.

Upon breaking into CryptoLogic's servers, hackers reprogrammed slot machines and a craps table at two Web-based casinos which use the firm's software so that illicit players won every time they played, Canada's National Post reports. It reports 140 gamblers amassed $1.9 million in the scam before CryptoLogic detected the scam and pulled the plug.

The net impact of the breach, which took place in August, on CryptoLogic was originally expected to be $600,000, after an expected insurance claim of $1.3 million.

However after a year end review, CryptoLogic decided to write-off the $1.3 million associated with the insurance claim arising from the system intrusion.

In its results statement, CryptoLogic said: "While the claim is subject to ongoing investigation, the company felt a prudent and conservative approach was appropriate."

Because of the charge, CryptoLogic's net income for Q4 was $3.7 million, compared to $4.1 million last year. Without this one-time expense, CryptoLogic would have posted net income of $4.2 million. ®

Related Stories

Police urge business to report hi-tech crimes
DDoS protection racket targets online bookies
Net betting boosts William Hill profits
UK becomes haven for Internet gambling
Online betting nobbles Coral results

The next step in data security

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Protecting users from Firesheep and other Sidejacking attacks with SSL
Discussing the vulnerabilities inherent in Wi-Fi networks, and how using TLS/SSL for your entire site will assure security.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.