Cyber Threats That Are Targeting Online Casinos

The online casino industry attracts millions of players globally. It brings in billions of dollars and is expected to grow by over $11 billion between 2024 and 2026. Players are only a click away from some of the most thrilling games with high-ticket prizes. As the casino industry enhances on a digital scale, it opens up the threat of cyber attacks. Cybercriminals use malware to hack into these platforms and gain access to sensitive data.

Between 2021 and 2022, there was a massive 260% increase in cyber attacks on online casino platforms. These incidents caused online casinos to increase their security measures, utilising options like encryption, two-factor authentication, and other technology. But can they ever be safe enough? Throughout this page, we’ll take a closer look at why casinos are prime targets for cyber attacks and how they can take action to prevent threats.

What Is an Online Casino Cyber Attack?

An online cyber attack occurs when a criminal breaks into a computer system to harm the network. There are various types of cyber threats, which include stealing or destroying data, exposing information, altering or disabling applications, or anything else that compromises the system. When an online casino is hacked, it’s usually to steal money or information.

This can be extremely risky. In 2023, gamblers were shocked when BetMGM and Caesars—two leading names in the industry—were hacked. These attacks avoided online casino security and put customer information at risk. It just goes to show that even the best real money casinos always have room for improvement.

Examples of Online Casino Cyber Attacks

Even safe online casinos can be put at risk. In fact, some of the most famous cyber attacks on online casinos have happened to well-known brands. Let’s take the BetMGM Casino attacks, for example. Now, MGM is a major brand that also has resorts. This particular attack was carried out in 2023 by MGM Resorts when hackers impersonated an employee on a call to the front desk. They ended up launching a multi-factor authentication attack that encrypted 100+ ESXi hypervisors. This attack cost the company over $100 million.

Caesars paid a $15 million ransom after its system was compromised in a social engineering attack. The hackers obtained the casino’s loyalty program database, which puts customers’ sensitive information, like driver’s licenses and social security numbers, at risk.

SBTech was the victim of a ransomware infection that caused a 72-hour outage. During this time period, all of the casinos that operated under SBTech were shut down. However, it’s important to know that this shutdown wasn’t due to the infection. The company voluntarily shut down all servers for protection. While no information was compromised, the disruption interrupted finances.

Another cyber attack that shocked gamblers worldwide was the 2022 DraftKing attack. Hackers used a system to guess passwords and log into online gaming members’ accounts. Once they were in, they could access personal information and withdraw money. Roughly 60,000 customers were affected, and the hackers took around $300,000.

Types of Cyber Threats

Unfortunately, cyber-attacks come in many shapes and sizes. There are many different types of threats, which means that online casinos need to use various measures of security to remain protected. Let’s take a look at some of the threats that put the online gambling industry at risk.

Ransomware

Phishing Scams

Malware

DDoS

Common Vulnerabilities in Online Casinos

Any online industry is vulnerable to cyber-attacks. The cyber casino industry is a prime target because it’s worth over $44 billion. From ransomware to account takeover fraud, there are plenty of ways that criminals can take advantage of these online gambling platforms and the people who use them. Now, it’s important to realize that the industry has made several adjustments and improvements to increase security measures. But, there are still some areas that leave these platforms vulnerable.

Employee awareness is one area that needs the most improvement when it comes to preventing cyber attacks. Improving employee training regiments can prevent this. Better training can help staff understand the threats, what information cyber criminals are looking for, and how to keep the servers protected.

Network segmentation also gives experienced hackers an outlet to attack multiple online casinos in one shot. This is because it’s common for a large number of brands to be operating under one company. For example, when SBTech was compromised, all of the brands under its umbrella were temporarily shut down.

Casinos can also provide more resources to customers on how to stay protected. When customers have passwords that are easy to guess, their accounts are at a higher risk, like those who were part of the Draftkings attack.

Although some areas of casinos are still vulnerable, this should not deter people from enjoying these services. The top-rated online platforms all use updated security measures. They are monitored 24/7 to detect any suspicious activity and avoid any risk an online casino can have. AI technology has also helped to enhance casino cyber security methods, allowing platforms to spot threats sooner.

Impact of Cyber Attacks on Casinos

A cyber attack is never the fault of a gambling platform. But when it happens, it’s the online casino brand that gets impacted the most. These attacks can cause a lot of damage. Many casinos have lost huge sums of funds that exceed hundreds of thousands of dollars. This could be from paying ransom, money stolen from cyber criminals, or revenue loss from shutting down servers.

Unfortunately, these attacks also hurt the online casino’s reputation. Members of the casino feel alarmed because their personal details and sensitive information could be at risk. This turns them off from using the site again. Potential customers are likely to use competitor sites that feature their favourite software developer for a casino because they don’t want to use a site with poor security methods.

On top of all of this, online casinos could also face legal implications if they’re victims of a cyber attack. Why is this? Well, casinos have a duty to keep all confidential information protected as a main condition of online gambling security. If the platform fails to do this, they could be at risk of charges for negligence, privacy violations, breach of contract, and customer protection violations.

How to Avoid Cyber Attacks

If you’ve made it this far, you might be asking the question, “Is joining an online casino really worth it?” For the most part, online casinos are safe for customers. But there are a few things you should be aware of to ensure you have a safe experience online gambling. First, only choose casinos that are licensed by reputable authorities, like Malta Gaming, Curacao Gaming, UKGC, etc. This license ensures that the platform is monitored 24/7.

You can also keep your account safe by using a distinct password, enabling two-factor authentication, and only using one email address. If the casino or your account is ever compromised, always change your password immediately. If any suspicious activity is noticed on your account, contact customer service by chat or email to report it.

Unfortunately, customers will not be able to 100% prevent a cyber attack. However, with the right steps, they can keep their personal information safe.

Future Trends in Casino Cybersecurity

As cybersecurity threats for online casinos emerge, the casino industry’s security measures continue to evolve. One of the biggest trends in the future of casino cybersecurity is AI technology. This technology is being used to analyze patterns and detect fraudulent behaviour. It also uses predictive analytics, which could help operators spot threats of an attack before it occurs.

Some online casinos are also adopting a zero-trust security model. This is when the system is developed with a “never trust, always verify” concept. By implementing this model, the casino minimizes the attack surface, making it difficult for hackers to strike.

Blockchain offers a promising solution for enhancing security and transparency in online transactions. Casinos can implement blockchain to secure financial transactions and ensure the integrity of gaming outcomes. The decentralized nature of blockchain makes it difficult for hackers to alter data, providing an additional layer of protection against fraud and tampering.

Cybercriminals’ strategies change along with cybersecurity measures. Future developments may witness increasingly complex ransomware assaults directed at casino databases, phishing scams, and advanced persistent threats (APTs) designed to obtain private client data. By keeping up with emerging trends and technologies, casinos may enhance their operational security and client trust.

Conclusion

The online gaming industry is growing rapidly. While this is excellent news for operators and gamblers, it does mean they will have to be cautious. Cybercriminals know that there is a lot of money in the online gaming industry. They have many tricks up their sleeve to use malware and other scams to make a casino cyber attack. Luckily, sites are aware of these threats and continue evolving security strategies and reducing online gambling risks. As more online casinos adapt to AI algorithms, they use 24/7 security monitoring.