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Iowa Lottery investigation highlights difficult balance between security and profitsNews Story
For more than a year while he worked at the Brick Street Market in Bondurant, Iowa, Matthew Hinrichs quietly stole lottery tickets, cashing in at least $28,000 in illegitimate prize money, prosecutors say. When he was finally caught in 2016, Hinrichs pleaded guilty to two felony counts of fraud and was ordered to pay back those winnings, plus nearly $5,000 more. Lottery officials say their layers of security allowed them to track Hinrichs' activity, providing data that was invaluable to pr
Jun 6, 2017, 2:48 pm - Lottery News

CT Lottery ignored warnings that game was vulnerable to fraud, investigation findsNews Story
Connecticut Lottery officials knew in January of 2015 that there was a way for retailers to illegally access the numbers of the 5 Card Cash game on their computer screens and manipulate tickets but waited 10 months to notify the Department of Consumer Protection that fraud was occurring. At a legislative hearing Tuesday morning Connecticut Lottery Corp.'s chairman and acting president, Frank Farricker, acknowledged that lottery officials put revenues over security issues concerning the game,
May 2, 2017, 4:38 pm - Lottery News

Alleged lottery scandal conspirator to enter new pleaNews Story
A Texas businessman charged in Iowa's lottery rigging investigation is scheduled to enter a new plea often a signal that a plea agreement has been reached with prosecutors. Robert Clark Rhodes pleaded not guilty in May to a felony charge of ongoing criminal conduct stemming from his alleged participation in a 2011 scheme to cash in on a Hot Lotto ticket worth more than $14 million. Rhodes, 48, reportedly is a close friend to Eddie Tipton, a former security official at the Urbandale-based Mult
Nov 14, 2016, 8:35 pm - Lottery News

Lottery scam investigation comes to TennesseeNews Story
Includes video report The Tennessee Education Lottery is cooperating with investigators as they look into one of the most elaborate lottery scams in U.S. history. The scam was the work of Eddie Tipton, a former security director with the Multi-State Lottery Association. Tipton has been convicted of fraud and sentenced to ten years in prison. But his brother and his old college roommate were recently arrested as the jackpot fixing investigation expanded. Prosecutors in Iowa say sur
May 11, 2016, 7:56 am - Lottery News

Third suspect surrenders in national lottery rigging scandalNews Story
A third man charged in a still-unfolding, multi-million dollar lottery rigging scandal investigation surrendered to authorities in Iowa on Thursday, his attorney said. Robert Clark Rhodes II was arrested last spring in his home state of Texas by authorities there, after Iowa prosecutors charged him with two counts of fraud for helping a then-top lottery security official allegedly rig multiple jackpot drawings. Rhodes challenged the arrest in court, claiming investigators did not have suff
Apr 28, 2016, 3:43 pm - Lottery News

Lottery rigging scandal prompts security audit in South DakotaNews Story
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
Apr 13, 2016, 7:22 pm - Lottery News

Lottery Post moves to total encryptionNews Story
All 2 million+ pages of website now secured by SSL encryption By Todd Northrop As of June 26, 2015, Lottery Post is serving all of its pages over SSL encryption. Previously, security-critical portions of the website, such as the Log In page and the password change page, were protected by SSL encryption, but the remainder of the site was transmitted over normal, non-encrypted HTTP communications. To make the transition to all-SSL connections, the website is currently redirecting all n
Jun 26, 2015, 9:42 am - Lottery News

Oklahoma Lottery wants ban on employee purchases liftedNews Story
The Oklahoma Lottery Commission wants to get a law changed to assist it with investigations. The agency wants to change a law that bans all of its employees from purchasing tickets, said Rollo Redburn, Oklahoma Lottery Commission executive director. It would be somebody in our security department who could purchase a ticket in the confines of an investigation, said Jay Finks, Oklahoma Lottery Commission director of marketing and administration. Currently, the agency sends out investiga
Sep 23, 2013, 7:51 am - Lottery News

Honest: Idaho Lottery retailers pass 4-month security auditNews Story
Using undercover operatives and decoy high-tier winning tickets, the Idaho Lottery has concluded a four month investigation to protect the security and integrity of all its games. During the investigation, the Lottery evaluated cashing procedures of the decoy winning tickets at 128 of its 1150 retailers in 61 cities and towns across Idaho. The net result of the investigation showed that 100% of all Idaho Lottery retailers checked had met all of the security and integrity criteria. We believe
Sep 17, 2012, 11:27 am - Lottery News

Iowa Lottery security chief to grill NY lawyer over Hot Lotto ticketNews Story
Includes audio report Meetings to take 'several days' The Iowa Lottery's security chief says it will likely take several...days of face-to-face meetings with a New York attorney and others to get all the questions answered about a winning Hot Lotto ticket. The ticket was sent via FedEx to a Des Moines law firm and turned in at Iowa Lottery headquarters just hours before the deadline. Steve Bogle, the vice president of security at the Iowa Lottery, says he needs to determine the chain
Jan 17, 2012, 1:37 pm - Lottery News