The Significance of Cybersecurity in the Online Gambling Industry

The online gambling industry is largely based in cyberspace, providing gamblers with an interactive and connected gaming environment. With the growth of digital gambling platforms, the expansion of mobile markets, and the incorporation of AI into gambling platforms, the risk of cyber fraud has increased exponentially. Although the technological advancements we have witnessed in the modern era have been path-breaking and beneficial in many ways, it has undoubtedly triggered the rise of many unwanted challenges.

In a 2021 study done by a UK online casino, it was found that “The majority of stakeholders indicated they suffered some kind of cyber incident within the last 12 months.” Among these incidents, the common attacks included credential stuffing, DDoS, and phishing attacks. Another article states that 70% of sports organizations faced cyber attacks or breaches. These attacks have put players at significant risk, with cybercriminals targeting such as:

• Data Breaches: Online gambling websites store large amounts of personal and financial information, making them the main target of cybercriminals.
• DDoS attacks: Distributed Denial of Service attacks can destroy gambling websites, resulting in massive losses of revenue and downtime.
• Regulatory Accordance: Maintaining rigorous regulatory data protection systems across governmental boundaries has been challenging.
• Fraud: Sophisticated scams targeting bonus abuse and account takeovers lead to substantial financial loss.

However, the risk of cyberattacks is not limited to the gambling platforms but also extends to the gamblers. Employing strong passwords, facilitating multi-factor authentication, and being vigilant when sharing personal information are some precautionary measures one can take to prevent falling for fraudulent activities such as:

• Unfair gambling experiences: Hackers can potentially alter the outcomes of the games, causing unjust losses.
• Identity theft: A data breach can cause personal and financial data of the gamblers to be compromised.
• Addiction insensitivity: Targeted vulnerable gamblers can be manipulated by cybercriminals with personalized marketing.

Michael Skelton, Vice President of Operations and Hacker Success, had commented on the topic with, “Beyond the traditional security measures, an online gambling professional or enthusiast must always consider their software stack, and be cautious installing any third-party application from sites like TwoPlusTwo and other forums, regardless of their perceived usefulness,”.

Discussing the same topic, an ex-professional poker player had said, “The protection of your online wallet should be considered top of the mind, and the reputation of a site when it comes to security should be a significant factor. Historically, UltimateBet and Absolute Poker had cheating at the platform level, leading to significant losses, a risk that is much more likely in lesser-known cryptocurrency gambling sites.”

Some of the effective precautionary measures to reduce your organization's exposure to the common kinds of cyberattacks out there, as stated by the United Kingdom’s Cyber Essentials, are:

• Endpoint Detection and Response (EDR): Execute and recognise EDR to identify and react to known attack code.
• Management of the patch: Launch a patch management policy and program to make sure that the vulnerabilities are dealt with and patched in a way that is congruent with the risk level the vulnerability presents.
• Boundary Firewalls and Internet gateways: Secure network parameter defences, such as web proxy, web filtering, firewall policies, and content checking to identify and stop executable downloads.

Major features of cybersecurity in the online sports betting industry include the prevention of fraud and the incorporation of anti-money laundering protocols. These strategies must be adopted by online gambling companies to identify and avoid fraudulent activities. They also must prioritize efficient monitoring processes, supervising the transactions, and detecting unauthorized and unusual activities instantly.

The National Cybersecurity Alliance (NCA) provides suggestions and tips, helping the general public and organizations to protect themselves against cyberattacks. Their tip for online gamers is direct:

Cliff Steinhauer, Director, Information Security and Engagement, at the NCA, stated, “Online betting is a potentially exciting activity for interested gamers, but they should always proceed with patience, vigilance, and caution.” He adds, “ Don’t forget to add MFA, use strong, unique passwords, and be suspicious of inbound messages about gaming that could be phishing attempts. Attackers see opportunities to exploit the excitement around online betting as a way to trick users into acting too quickly, without thinking about the source or the red flags in the message. Slow down, have fun, and stay safe!”