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Lottery rigging scandal prompts security audit in South Dakota

South DakotaSouth Dakota: Lottery rigging scandal prompts security audit in South Dakota
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PIERRE, S.D. — The scandal unfolding in Iowa, where software allowed some results to be rigged in multi-state lotto drawings, has added to concerns among South Dakota Lottery officials, spurring them to proceed Thursday in requesting proposals for a security review of South Dakota Lottery facilities.

The review also would cover the statewide video-lottery system and the statewide lotto jackpot system.

Each separately connects with hundreds of private businesses.

The scratch-ticket system also would be analyzed.

State government gets more than $100 million annually from them.

The commission received a presentation on cyber security Thursday from Jim Edman, a top official in the state Bureau of Information and Telecommunications.

"This is a worldwide issue. We are not immune from it in South Dakota," Edman said.

Commission member Roger Novotny, of Fort Pierre, said BIT has done well staying ahead of hackers. He said the soft spot might be third-party vendors.

Novotny said he's confident that major vendors to the South Dakota Lottery have high-level security in place but, he asked, are there security checks?

"I think that's our greatest risk," Novotny said. "I don't view them as risks necessarily, but I don't know."

Edman said BIT deals with third-party vendors "all the time" and finds a range of attention paid by them to cyber-security.

The challenge is getting the vendors to understand "we are on the same team here" and BIT isn't interested in their proprietary business knowledge, Edman said.

The greatest frustration comes with vendors who don't understand that philosophy, he said. He called it "critical" to have outside experts play the role of hacking to test systems, policies and people.

Novotny wondered whether there should be some sort of regular report and whether third-party contracts should specifically cover the security issue. He suggested hiring an outside tester.

Novotny mentioned the Iowa lottery scam. "It was bigger than earlier anticipated and it was broader," Novotny said.

He doesn't want a broad-scale attack originating from South Dakota. "It would be a multi-million dollar disaster, not just for us but for other states," Novotny said.

Edman replied that BIT "would certainly participate" with the lottery staff on tightening contracts and conducting third-party risk assessments.

Norm Lingle, the lottery's director, told Novotny his points were well-taken. Lingle said BIT is "looped in" when the lottery works with vendors.

Edman said, "You need to lay the expectations on this particular topic; cyber-security is very important."

Commission member Jim Putnam, of Armour, said the threat of cyber crime is "frustrating" to anyone with an electronic device.

"In days gone by, we knew who the Dalton Gang was, and when they came to town, they went to the bank," Putnam said.

Putnam said there is tremendous pressure to conduct business electronically and it relies on trust. Putnam said the Iowa case is providing information.

Edman replied that the skilled cyber criminals seldom leave a trail.

"Finding the bad guy is more difficult than finding a needle in a haystack. It would be finding a needle in South Dakota," Edman said.

Timeline of the biggest crime in US lottery history

The following is a compilation of Lottery Post news coverage chronicling the Hot Lotto mystery and subsequently discovered crime.

We start the timeline with a news story indicating that only 3 months remained for the $16 million Hot Lotto jackpot to be claimed.

Daily Republic, Lottery Post Staff

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8 comments. Last comment 8 months ago by SilverLion.
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music*'s avatar - nw bookeep.jpg
Happy California
United States
Member #157856
August 2, 2014
1522 Posts
Offline
Posted: April 13, 2016, 11:28 pm - IP Logged

 I will take our Chief bottle washer's advice, Only bet on the mechanical draw games. No more computerized RNG draws.

 I've been rich and I've been poor. Believe me, rich is better. 

 Attributed to Joe E. Lewis and others

    mypiemaster's avatar - 2015021003pileofcash
    JACKPOT HUNTER

    United States
    Member #141034
    April 2, 2013
    1409 Posts
    Offline
    Posted: April 14, 2016, 7:50 am - IP Logged

    Every time I read stories like this, involving the vulnerabilities inherent in RNG and the like, I start to shake my head. Some of the smart guys have already rigged the system, made their money, unrigged the system, moved on and are living the good life happily ever after. Only the overly selfish ones like TIPTON, that get caught. The lotteries are still non the wiser. BAN RNG FOR GOOD.

    Seek and ye shall find -Matt. 7:7 ...Ask and ye shall receive -John 16:24 ...Give and it shall be given unto you -Luke 6:38 ...Be careful what you ask for!!! -Mypiemaster 1:1

    Having Money Solves Problems That Not Having Money Creates Yes Nod ****John Carlton****

      cbr$'s avatar - maren
      Cordova,Al.
      United States
      Member #104482
      January 15, 2011
      4927 Posts
      Offline
      Posted: April 14, 2016, 8:36 am - IP Logged

      The scandal unfolding in Iowa, where software allowed some results to be rigged in multi-state lotto drawings, has added to concerns among South Dakota Lottery officials, spurring them to proceed Thursday in requesting proposals for a security review of South Dakota Lottery facilities.

      The review also would cover the statewide video-lottery system and the statewide lotto jackpot system.

      Each separately connects with hundreds of private businesses.

      The scratch-ticket system also would be analyzed.

      State government gets more than $100 million annually from them.

      The commission received a presentation on cyber security Thursday from Jim Edman, a top official in the state Bureau of Information and Telecommunications.

      "This is a worldwide issue. We are not immune from it in South Dakota," Edman said.

      Commission member Roger Novotny, of Fort Pierre, said BIT has done well staying ahead of hackers. He said the soft spot might be third-party vendors.

      Novotny said he's confident that major vendors to the South Dakota Lottery have high-level security in place but, he asked, are there security checks?

      "I think that's our greatest risk," Novotny said. "I don't view them as risks necessarily, but I don't know."

      Edman said BIT deals with third-party vendors "all the time" and finds a range of attention paid by them to cyber-security.

      The challenge is getting the vendors to understand "we are on the same team here" and BIT isn't interested in their proprietary business knowledge, Edman said.

      The greatest frustration comes with vendors who don't understand that philosophy, he said. He called it "critical" to have outside experts play the role of hacking to test systems, policies and people.

      Novotny wondered whether there should be some sort of regular report and whether third-party contracts should specifically cover the security issue. He suggested hiring an outside tester.

      Novotny mentioned the Iowa lottery scam. "It was bigger than earlier anticipated and it was broader," Novotny said.

      He doesn't want a broad-scale attack originating from South Dakota. "It would be a multi-million dollar disaster, not just for us but for other states," Novotny said.

      Edman replied that BIT "would certainly participate" with the lottery staff on tightening contracts and conducting third-party risk assessments.

      Norm Lingle, the lottery's director, told Novotny his points were well-taken. Lingle said BIT is "looped in" when the lottery works with vendors.

      Edman said, "You need to lay the expectations on this particular topic; cyber-security is very important."

      Commission member Jim Putnam, of Armour, said the threat of cyber crime is "frustrating" to anyone with an electronic device.

      "In days gone by, we knew who the Dalton Gang was, and when they came to town, they went to the bank," Putnam said.

      Putnam said there is tremendous pressure to conduct business electronically and it relies on trust. Putnam said the Iowa case is providing information.

      Edman replied that the skilled cyber criminals seldom leave a trail.

      "Finding the bad guy is more difficult than finding a needle in a haystack. It would be finding a needle in South Dakota," Edman said.

      Timeline of the biggest crime in US lottery history

      The following is a compilation of Lottery Post news coverage chronicling the Hot Lotto mystery and subsequently discovered crime.

      We start the timeline with a news story indicating that only 3 months remained for the $16 million Hot Lotto jackpot to be claimed.

      Finally !  The lottery has woke- up and smell the coffee. The Iowa lottery security
      scam force the other state lottery open their eyes. Yes, all the state lottery need
      a outside testers to come in. Give the state that is about to be tested & audit only
      72 hours notices. It will be to the state best interest to do testing & outside auditing quarterly. If you go to the right company all your results will be back in 72 hours at your Headquarter.
        rcbbuckeye's avatar - Lottery-043.jpg
        Texas
        United States
        Member #55889
        October 23, 2007
        5611 Posts
        Offline
        Posted: April 14, 2016, 8:40 am - IP Logged

        Every time I read stories like this, involving the vulnerabilities inherent in RNG and the like, I start to shake my head. Some of the smart guys have already rigged the system, made their money, unrigged the system, moved on and are living the good life happily ever after. Only the overly selfish ones like TIPTON, that get caught. The lotteries are still non the wiser. BAN RNG FOR GOOD.

        As much as players may want RNG banned, we heard it from the horse's mouth in January that RNG's are here to stay.

        As hard as it may be, players that live in RNG states really need to make their voices heard by not playing any games that are RNG.

        CAN'T WIN IF YOU'RE NOT IN

        A DOLLAR AND A DREAM (OR $2)

          sully16's avatar - sharan
          Ringleader
          Michigan
          United States
          Member #81740
          October 28, 2009
          40566 Posts
          Online
          Posted: April 14, 2016, 11:05 am - IP Logged

          As much as players may want RNG banned, we heard it from the horse's mouth in January that RNG's are here to stay.

          As hard as it may be, players that live in RNG states really need to make their voices heard by not playing any games that are RNG.

          I agree, speak up players.

          Did you exchange a walk on part in the war ?

          For a lead role in a cage?

           

                                                      From Pink Floyd's " Wish you were here"

            LiveInGreenBay's avatar - driver
            Green Bay
            United States
            Member #169391
            October 15, 2015
            1248 Posts
            Offline
            Posted: April 14, 2016, 12:39 pm - IP Logged

            I like RNG because they aren't random.

            Never give up.  Banana

              Avatar
              Kentucky
              United States
              Member #32652
              February 14, 2006
              7318 Posts
              Offline
              Posted: April 14, 2016, 1:26 pm - IP Logged

              The scandal unfolding in Iowa, where software allowed some results to be rigged in multi-state lotto drawings, has added to concerns among South Dakota Lottery officials, spurring them to proceed Thursday in requesting proposals for a security review of South Dakota Lottery facilities.

              The review also would cover the statewide video-lottery system and the statewide lotto jackpot system.

              Each separately connects with hundreds of private businesses.

              The scratch-ticket system also would be analyzed.

              State government gets more than $100 million annually from them.

              The commission received a presentation on cyber security Thursday from Jim Edman, a top official in the state Bureau of Information and Telecommunications.

              "This is a worldwide issue. We are not immune from it in South Dakota," Edman said.

              Commission member Roger Novotny, of Fort Pierre, said BIT has done well staying ahead of hackers. He said the soft spot might be third-party vendors.

              Novotny said he's confident that major vendors to the South Dakota Lottery have high-level security in place but, he asked, are there security checks?

              "I think that's our greatest risk," Novotny said. "I don't view them as risks necessarily, but I don't know."

              Edman said BIT deals with third-party vendors "all the time" and finds a range of attention paid by them to cyber-security.

              The challenge is getting the vendors to understand "we are on the same team here" and BIT isn't interested in their proprietary business knowledge, Edman said.

              The greatest frustration comes with vendors who don't understand that philosophy, he said. He called it "critical" to have outside experts play the role of hacking to test systems, policies and people.

              Novotny wondered whether there should be some sort of regular report and whether third-party contracts should specifically cover the security issue. He suggested hiring an outside tester.

              Novotny mentioned the Iowa lottery scam. "It was bigger than earlier anticipated and it was broader," Novotny said.

              He doesn't want a broad-scale attack originating from South Dakota. "It would be a multi-million dollar disaster, not just for us but for other states," Novotny said.

              Edman replied that BIT "would certainly participate" with the lottery staff on tightening contracts and conducting third-party risk assessments.

              Norm Lingle, the lottery's director, told Novotny his points were well-taken. Lingle said BIT is "looped in" when the lottery works with vendors.

              Edman said, "You need to lay the expectations on this particular topic; cyber-security is very important."

              Commission member Jim Putnam, of Armour, said the threat of cyber crime is "frustrating" to anyone with an electronic device.

              "In days gone by, we knew who the Dalton Gang was, and when they came to town, they went to the bank," Putnam said.

              Putnam said there is tremendous pressure to conduct business electronically and it relies on trust. Putnam said the Iowa case is providing information.

              Edman replied that the skilled cyber criminals seldom leave a trail.

              "Finding the bad guy is more difficult than finding a needle in a haystack. It would be finding a needle in South Dakota," Edman said.

              Timeline of the biggest crime in US lottery history

              The following is a compilation of Lottery Post news coverage chronicling the Hot Lotto mystery and subsequently discovered crime.

              We start the timeline with a news story indicating that only 3 months remained for the $16 million Hot Lotto jackpot to be claimed.

              Hot Lotto, PB, and MM are drawn in other states and Dakota Cash is the only drawn (online) game the South Dakota Lottery has. 

              "The commission received a presentation on cyber security Thursday from Jim Edman, a top official in the state Bureau of Information and Telecommunications."

              Iowa had a fox guarding their hen house, but their RNG was not connected to any other computer, which makes SD Lottery concern about cyber security puzzling.

                SilverLion's avatar - 8ball

                United States
                Member #165541
                April 12, 2015
                545 Posts
                Offline
                Posted: April 14, 2016, 6:57 pm - IP Logged

                 I will take our Chief bottle washer's advice, Only bet on the mechanical draw games. No more computerized RNG draws.

                But mechanical draws have magnets and neon gas, that is lighter than air.  I learned that on the internet.