The online gambling industry is a magnet for cybercriminals. Currently worth $55.65 million, the sector attracts nearly as many fraudsters and bad-faith actors as players. Let’s review how cybercrime risk impacts the industry and how providers and players can address it.
A Growing Threat
The expansion of gambling providers like betway into new markets continues to attract fraudsters. Between Q4 2021 and Q1 2022, gaming companies recorded a 260 percent increase in online attacks. In May 2023, a stuffing attack on DraftKings affected 60,000 player accounts.
Cyberattacks are not confined to the US. In April last year, a cyberattack on one of Canada’s top gambling companies shut down 14 casinos. French online casinos Houlgate, Holland Casino Online, and several Russian casinos have fallen victim.
Cyberattack Vulnerabilities
Ironically, some experts believe that the very fact that online casinos exist in the digital space predisposes them to attacks. This makes sense in some respects. It is much easier to hack into an online system than break into the vaults at the Bellagio.
However, an online presence does not determine whether an online casino gets hacked. Many providers like Betway exist and operate successfully online. In more in-depth analyses, experts have pointed the finger at the vulnerabilities that arise from IoT and third-party partners.
IoT Technology
The Internet of Things (IoT) connects everyday items to the Internet, including cameras, thermostats, watches, and cars. While many people install firewalls on their laptops and phones, very few do that with their thermostats. This means that if your protected phone is connected to your unprotected thermostat, a hacker could access your phone through your thermostat.
Thus, IoT opens up many avenues for data breaches. In 2017, cybercriminals infiltrated a North American casino’s network through an unprotected IoT-connected smart fish tank thermometer.
Third-Party Partners
Casinos often partner with third-party providers to facilitate fund transfers. Companies like Skrill and PayPal are very popular in the online gambling space.
As with IoT, the downside is that any vulnerabilities in a third-party partner’s systems automatically expose a casino’s networks. A 2022 report shows that 54 percent of businesses that suffered a data breach that year could trace it to a third-party partner.
The Impact of Security Breaches
When security breaches happen, they can cause high financial losses. Data shows that casino providers lose an average of $4 million per cyberattack.
But the losses transcend money. Players entrust their personal and financial data to online casinos with the understanding that it will be safe. If a casino fails to protect this data, it can lose credibility with its audience and face compliance issues.
Optimizing Online Casino Cybersecurity
Therefore, it is pertinent that online casino providers protect their systems from online attacks. One of the most effective ways is by encrypting data in transit so bad-faith actors cannot access or tamper with it during transactions.
Online casinos can also implement secure payment gateways to ensure safe fund transfers. Strategies like tokenization and hashing convert sensitive financial data like credit card numbers into unreadable codes or characters. Two-factor authentication, regular system audits, and firewalls are also effective interventions.
Staying Safe Online
Vulnerability to fraud is not new or specific to online gambling. Top casinos worldwide have dealt with bad-faith actors since the dawn of the industry.
However, as casino providers like Betway have moved to the digital space, so have fraudsters. It can even be argued that online casinos are at a higher risk for fraud because they exist online.
As a player, the most effective way to protect your data and money is to pick a provider with robust security systems. The more reputable the casino, the safer your gambling experience.