Subsidiary of New Codere Suffers $805,000 Loss Due to Cyber Assault
Revamped Article:
Whoa, looks like Codere Online - the digital gambling platform with a variety of casino games and sports betting options - has suffered a cyber attack, my dude! The Securities and Exchange Commission (SEC) has confirmed that sneaky hackers exploited some internal control weaknesses to gain access to the company's email system.
The hacksters masqueraded as Codere Online's agents, sending fraudulent invoices to various suppliers, demanding quick payments. Codere swiftly labeled this event as an "isolated incident" that didn't compromise the safety and integrity of their user's sensitive data, like deposits, passwords, and personal details. The finance peeps at all the involved banks were apprised of the situation, and Codere is working hard to recover the €744,000 ($805,000) they lost as a result.
The SEC filing revealed that Codere neglected to utilize adequate internal controls for managing financial data and highlighted the "ineffective design" and "vulnerabilities" in their payment system as the prime culprits. Additionally, the company's cybersecurity systems appeared powerless to put a stop to this technologically-sophisticated attack. From the assessment of internal controls, it seems there's no evidence that a Codere employee assisted in the attack.
In response to this event, Codere's been stepping up its game, enhancing its internal system controls and IT security to bolster protection against future cyber assaults. This isn't the first time Codere has faced such a threat; a similar hack occurred in 2020 involving a server breach that leaked sensitive user data. Around 500,000 customers were cautioned about potential data breaches, with the final audit showing just 64,000 online users were affected. Last December, Codere signed a partnership deal with Evolution Group to enter Panama's regulated gambling market, while a month before that, Zitro Digital sealed an agreement with a popular Spanish operator.
[1] Source: Data on recent hacks in the Mexican gambling industry is not widely available or easily searchable, but cybersecurity concerns are a known issue within the sector. The industry is moving towards implementing more robust systems to avoid breaches.
[2] Source: The Mexican government has put regulations in place, such as capital reserves and geoblocking, to ensure operational integrity within the gambling market.
[3] Source: Codere is expanding its global presence, with a significant stake in Italy's Codgames, and has reported strong financial results in Mexico. The company's strategy includes enhancing operational efficiency and market presence.
- The sports betting and casino industry, like Codere Online, is transitioning towards implementing stronger cybersecurity measures to prevent breaches, given the increasing concern over cyber attacks.
- The banking and insurance sector, being involved in Codere's financial transactions, needs to stay updated about such cybersecurity incidents to secure their clients' funds and maintain integrity.
- As per reports, fintech has been a growing focus for companies like Codere, with partnerships being signed to capitalize on emerging technologies and improve operational efficiency.
- The regulatory bodies, such as the Securities and Exchange Commission, are emphasizing the need for robust internal control systems and adequate cybersecurity measures within the gambling and finance industries.
