Fraudulent gambling transactions costing US online poker players up to $10K remain a threat, but Global Payments and other operators are working to resolve the problem.
News that a fraudster (or team of fraudsters) was using stolen data to create fake online poker accounts and steal money from players’ bank accounts broke last week. The fraudster was able to use VIP Preferred, a deposit method owned by Global Payments, to carry out the scam.
Any poker players who have used VIP Preferred are potential targets and, according to new information, the scam has been happening since October 12. It’s also emerged that the fraudster is creating fake accounts on DraftKings, as well as on BetMGM and WSOP.com.
Global Payments reassures US online poker players
CardsChat contacted Global Payments to ask whether the company was aware of the problem. Emily Edmonds, Vice President of External Communications, told us that the gaming division at Global Payments is aware of the problem and working to resolve it as quickly as possible.
“Our gaming business has been assisting law enforcement with an investigation into fraudulent accounts set up at unaffiliated third parties using stolen personal information,” Edmonds told CardsChat.
She went on to explain that Global Payments’ database hasn’t been compromised. Instead, the fraudster used unaffiliated third-party sites to steal information that’s now being used to create fake accounts at US online poker sites.
“There has been no security breach or fraudulent accounts opened at our gaming business in connection with this investigation. The protection of our customers and their clients’ information and funds is our top priority and we are working with these third parties to ensure any impacted individuals are refunded,” Edmonds continued.
CardsChat also contacted BetMGM, one of the online poker sites being used by the fraudster to steal money from players. A spokeswoman for the company told us the matter was under review.
“We’re aware of the issue and are working with impacted patrons to make sure refunds are processed,” said the BetMGM spokeswoman.
Based on the statements provided, the issue doesn’t appear to be directly linked to Global Payments or licensed US poker sites. The fraudster appears to have stolen customer data from somewhere else.
They’re now using this information to create fake poker accounts and, in turn, use VIP Preferred to deposit eChecks. You can click here for our previous article to get a breakdown of how we believe the fraudster is stealing money from poker players.
Poker players should remain on high alert
A statement from DraftKings supports the theory that information has been stolen from somewhere other than Global Payments or US online gambling sites. Following a spate of unusual activity, the online gambling company posted the following message on Twitter.
Statement: pic.twitter.com/HsK9Rb0OZ3
— DraftKings News (@DraftKingsNews) November 21, 2022
The threat to US poker players who have previously used VIP Preferred remains. What’s more, the situation continues to evolve. Melissa Burr, a poker player and operations expert, outlined the current state of play in a lengthy Twitter thread.
⚠️Thread re: legal online gambling compromise ⚠️
– attacker is able to open new accounts with legal online sites and deposit using eChecks via Global Payments and withdraw to sites like betmgm w/bad WD processes
– attacker can access draftkings and betmgm accounts bypassing 2fa— Melissa Burr (@burrrrrberry) November 21, 2022
She believes the issue may go beyond data being stolen from third-party sites. Her tweets state that two-factor authentication data has been breached at a variety of online gambling sites. Burr’s advice is to change all passwords associated with your gambling accounts. She also suggests locking your SIM card.
WHAT YOU DO KNOW
– these compromises have been happening since Oct 12, any of us could be next
– existing accounts are being compromised and drained on DraftKings and betmgm which means this is a massive data breach or 2fa compromise
– the sites arent protecting youACT NOW
— Melissa Burr (@burrrrrberry) November 21, 2022
The message for online poker players and anyone else who uses gambling sites is to be vigilant. Changing passwords, locking SIM cards and, if necessary, closing bank accounts used for online gambling transactions are the best ways to stay safe.
