Cybersecurity of online casinos in Canada

Cybersecurity

Canada’s online casino sites are among the most visited in the English-speaking part of the Internet. And, as you would expect, millions of people go through the steps of registering, logging into various accounts, and there are many transactions between platforms every minute of every day. Therefore, cybersecurity for Canadian players is important. Operators need to ensure that their services are secure. And customers want to feel safe playing at Canadian online casinos. One of the first steps that should be taken regarding online casinos and cybersecurity concerns licensing.

Those that have been in the market for a long time, such as PartyCasino and other long-established operators, understand the importance of having a valid license to operate. This shows that they want to do things right and honestly, and a license provides credibility, which in turn gives peace of mind to those who go to the site and play. The next thing on the agenda for operators and players alike is ensuring and using the latest security technology.

For example, there should be SSL encryption in place that players can verify when they visit a site by clicking the little padlock icon next to the web address when using a browser like Google Chrome. We’ve also seen the emergence of two-factor authentication, which is the perfect way to keep a user’s account and therefore their personal and payment information secure at all times. Hacked accounts are a thing of the past thanks to 2FA.

As we all know, the main problem for online casino operators and players is money. Naturally, there is a desire to keep them as safe as possible for all concerned, but at the same time common sense must be applied. Gaming operators are determined to welcome the use of reliable and trusted payment solutions, such as those internationally recognized.

And players are encouraged to use them instead of those that may have a questionable reputation in gaming circles; this is where the common sense angle comes into the equation, and for good reason. Another security threat that can creep into the Internet and casinos is identity theft and fraud. This offense can be committed outside of the gaming site, but then cybercriminals can try to profit from their criminal activity at the online casino. Again, however, operators have a trump card up their sleeve, and players have a role to play here as well.

In order for players to withdraw money, they will need to prove their identity by uploading documents such as scans of their passport or driver’s license, as well as confirming their address with a utility bill. They say cybercriminals and those who pose a threat to the web security of online casinos remain a step or two ahead of the operators. But that doesn’t seem to be the case lately, as operators are stepping up their efforts to make online casinos safer for Canadian gamblers and provide players with everything they need to have peace of mind and enjoy their gaming experience.

Our experts have presented a list of the Best Casinos Online for Canadians and most importantly, they are all completely safe. We have thoroughly analyzed each platform, studied encryption technologies, certificates and basic methods of information protection.

What do hackers need?

Today, no business connected in one way or another to the Internet is immune from cyberattacks. For hackers, it is a matter of potential profit.

A small family business can be hacked, as well as a large international gambling company, but the latter not only has funds that attackers can steal or demand – the firm will lose millions if the business is interrupted.

That said, money is not the only thing that can be lost in a hack. The personal information of your players, for which you are responsible, can fall into the hands of cybercriminals. When criminals gain access to players’ accounts, they can use that information to hack their email or social media accounts, and then either blackmail them with whatever they find there, withhold the data, or simply resell it to someone online.

Either way, you risk significant reputational damage and loss of trust from your players.

Where do hacker threats come from?

Unfortunately, there is no shortage of potential detractors on the web.

An attack is not necessarily personal in nature, and sometimes it is not aimed at a specific system at all – there are many hackers who simply scan the network for vulnerabilities and opportunities they can exploit.

In a competitive industry like iGaming, trying to gain an unfair advantage over another online casino or bookmaker is also not unusual. In the fight for players, unscrupulous companies – who don’t prioritize quality gaming content, can’t offer great player support, or simply use a bad platform – may decide instead to spend their money on hackers and damage their competitors.

Not all hacks are inherently malicious. There is a trend toward ethical or “white hat” hacking. These freelance professionals (sometimes called bounty hunters) find bugs and vulnerabilities in software and report them to companies for a fee. Unlike their criminal counterparts, these hackers do not seek to misuse data and help companies fix vulnerabilities before they are exploited by attackers.

However, it should be noted that the line between these two categories can sometimes be very thin. Some bounty hunters, without receiving the expected reward, may take advantage of their knowledge of your security flaws to launch a cyberattack.

Common types of cyber attacks

Port Scan Attacks

As mentioned earlier, hackers are always looking for weaknesses. This process can be fully automated: they simply probe random IP addresses, trying to find an open port or guess a password.

On every server (and on every computer in general) there will be many different services running. To connect to the network, they use ports, which serve as a means of communicating with the Internet.

While some ports are absolutely necessary (they allow web functions and remote administration), others are best kept closed to all users of the World Wide Web.

Port scanning is usually the beginning of a cyberattack, a way for a hacker to find a vulnerability that can be used to gain access to your system.

To better illustrate the process, imagine your server is a cabin in the woods. And the hacker is a thief who circles around it and constantly pulls every door handle. Looking for unlocked doors, and peeking under every doormat to see if a spare key is hidden somewhere.

And while you may be happy to have guests announce themselves and enter through the front door, you won’t like it if someone sneaks in through the bathroom window.

When you run your web server for the first time, many services start automatically with open ports and passwords set by default, making you immediately vulnerable. A lucky hacker who stumbles across your IP address during the scanning process can quickly get your data or even gain root access.

Port scanning is very common, but countermeasures are also well known. The best way to protect yourself is to be vigilant and keep all doors locked.

Denial of Service Attacks: DoS and DDoS

A distributed denial-of-service (or DDoS) attack is an extremely sophisticated type of attack because it requires a huge number of zombie machines and is a widespread cyber threat. 

Zombie machines are, hacked computers or networks and computers that have been infected with a special trojan or worm. The purpose of such a virus is only one, to give the intruder control over your computer remotely. Hundreds or thousands of these zombie machines are grouped into a zombie network, also called “Botnets” in the hacker community. Attack on web resource occurs on command from central command center and in a moment the site falling down hundreds of thousands of requests per second, almost no server is able to cope with the size of the requests to the database and server software. 

The best known worm and botnet to date was Mirai, which consisted of nearly one million devices. IoT devices from the smart home field were also among the devices.

It represents a flow of traffic that overloads the target system and, as a result, dramatically slows down data exchange or causes the server to crash.

Attackers use huge networks of malware-infected computers, called botnets, to carry out such attacks. Since the traffic does not come from a single source, but from many seemingly random machines, it is not easy to separate it from real users.

There are many different types of DDoS attacks, varying in technical implementation. In the broadest sense, they can be classified as attacks on infrastructure and attacks on applications.

SQL injection attack on a database query

Structured Query Language (or SQL) is a computer language used in database management.

Every time your player interacts with any input field (data entry or search string), on the server side, the data they enter often goes into some database or query to retrieve information.

All of this involves SQL, and by entering a carefully crafted command, a hacker can retrieve data he should not have access to.

Most modern databases are protected against SQL injections, which have been extremely common over the past 10 years. But such vulnerabilities do occur.

Ransomware

One of the most dangerous and destructive attack variants, and every cybersecurity manager’s worst nightmare. Ransomware or ransomware is a type of malware that uses encryption to make files on a computer completely inaccessible. The methods used in these attacks ensure that the data cannot be decrypted in a time frame acceptable to the victim. The hackers then ask for a ransom in exchange for a decryption key that can be used to return the files.

Ransomware is by far the worst kind of cybersecurity breach, because until the data is decrypted, your platform will be completely disabled. One example of how catastrophic the consequences can be is the March 2020 attack on SBTech.

The incident occurred at the worst possible time for the company, as it was in the process of merging with DraftKings. SBTech’s own iGaming platform for casino games and sports betting was down for a full week.

In addition to the loss of revenue and reputational damage, SBTech had to put an additional C$30 million into a fund to deal with the aftermath of the attack, such as lawsuits from hundreds of partners who lost revenue as a result of the failure.

The land-based sector is not immune to ransomware either. A recent hack in Tasmania completely disabled two casinos owned by the Federal Group, the company that has a monopoly on slot machines in the country. The hackers not only seized valuable customer personal data, but also forced the establishments to suspend their operations completely for 10 days. What entails huge financial losses and the loss of the online casino’s reputation as a reliable and safe gambling establishment.

Fraud and extortion

While many of the hacks on this list look like special operations straight out of a Hollywood movie, there are also attackers who are simply trying to steal some money by hacking into the platform functionality available to players. These hacks include everything from finding ways to get free bonus money to reverse-engineering game mechanics to get desired results in the game.

Social Engineering

If you ask a cybersecurity expert, “What is the weakest link in any system?”

The answer might surprise you – it’s people.

A common misconception is that everything hackers do, they do only on the Internet. In fact, hackers use what is known as social engineering to mislead and deceive their victims into revealing information that they would then use to gain access to the target system.

The simplest form of social engineering is a phone call or message: the hacker disguises himself as an authority figure in the company and tries to get the employee to reveal his password or other personal information.

Another tactic that is a major product of social engineering is the so-called traffic apple. Attackers leave a USB drive or other physical media infected with malware within reach of employees. If someone gets curious and takes it away, chances are it will be used on a work computer, infecting which hackers easily gain access to the network.

To break into a well-protected target, hackers may even try to break into company headquarters. The simplest tactic criminals use does not involve disguising or faking credentials: the attacker simply walks behind someone when they open the door. In foreign companies, this practice is called “tailgating.”

Once inside the building, hackers use manipulation and cunning tricks: 

  • using social engineering skills;
  • bypassing intrusion prevention systems;
  • gaining access to computer networks;
  • siphon off digital copies of documents and databases.

Phishing attacks

Phishing is fraudulent Internet communication disguised as real. It is used to gain access to information or steal data. Phishing usually refers to social engineering because human error plays a key role in this scam.

Such an attack can target both your players and your employees, with different goals and strategies. Your player may receive a fake email that looks like it was sent from you, asking you to “confirm” personal information or credit card information. Or the email will offer a bonus that can be obtained by clicking on a link to the platform. Except that the website it leads to is just a copy designed to deceive your players.

Your employees, in turn, may receive an email disguised as an email from a trusted partner, vendor, or even someone inside your company. The email may contain a malicious link or attachment that will serve as an aid to further hacking.

Classic tactic: An attacker pretends to be a representative of an IT manager or a system administrator and may ask an unsuspecting employee to share their login or password.

Criminals try to make the fake look very similar: the website will have the same design as yours and will also have a similar URL, and the email will have a real email address in the From: header.

Some phishing attacks specifically target business owners and senior executives. These emails are often personalized and usually try to convince the victim to transfer funds to an account belonging to the attacker or to disclose sensitive inside information.

This list is by no means exhaustive. Within these broad categories there are certain variations, and there are many unusual types of hacks targeting vulnerabilities in certain systems.

But most importantly, the most dangerous cyberattack is the one that hasn’t happened yet. So cybersecurity experts remain vigilant and do their best to anticipate where the next threat will come from.

  • Countermeasures against hacker attacks;
  • Keep your software up to date.

Hackers are constantly examining software for weaknesses. Developers are fixing bugs and closing holes that can be used to infiltrate systems, but it’s important to implement these changes to protect themselves.

The infamous WannaCry hack that occurred in May 2017, when companies in 150 countries lost $4 billion, could have been prevented simply by installing an update, but unfortunately they didn’t. 

The same thing happens with gambling platforms that don’t take cybersecurity seriously. If hackers find that some components of your system are outdated, they can find what vulnerabilities the developer has fixed in the next versions and use them against you.

Also, well-protected companies are less likely to be targeted. It’s cheaper and easier to hack an easier target.

Make sure your staff is trained

Even the most sophisticated hacks often require a person to click a link, download a file, or click a button. For this reason, trained personnel who are aware of cybersecurity threats can be an insurmountable bastion of protection.

A victim who is aware of social engineering techniques and strategies is much more resilient and less likely to be deceived.

For other types of attacks, having a comprehensive DDoS or hacking plan in place will help your team mitigate the damage and deal with the situation quickly and effectively.

Penetration testing

It’s not said for nothing that God cares about security. The best way to make sure your Canadian iGaming online platform is to put it to the test.

Pentest, or penetration testing, is when you ask a competent cybersecurity professional to hack your site. And if they succeed, you can fix the vulnerabilities and protect yourself from a real malware attack.

Make sure the law is on your side

Dealing with the consequences of a cyberattack is difficult enough, but if you can’t count on the authorities to help, the situation becomes even more disastrous.

Unlicensed black market gambling operators are the main target of hackers. Hackers can steal data, extort money, and still get away with it even if they are exposed.

In some cases, these hackers are even sanctioned by the government itself.

Two Israeli cybersecurity companies, Security Joes and Profero, published reports claiming that five companies illegally promoting their services to Chinese citizens were the targets of coordinated cyber attacks. According to the report, this is related to the Chinese government’s efforts to combat illegal operators.

Use safe technology

Especially when it comes to IT, better overkill than underkill.

Technologies such as Cloudflare can protect against DDoS attacks by directing and filtering traffic through the cloud network, and even a simple VPN can make you a harder target. CAPTCHA is another popular solution that helps reduce the damage from DDoS attacks because it offers every user a simple solution.

DDoS attacks use bots, and while no single solution provides 100% protection, each one forces hackers to use more bots, make them smarter, or keep the attack longer in order to succeed. All of this makes the attack attempt harder and more expensive.

The best defense against SQL injection is to encrypt databases. These attacks mostly target companies with outdated or poor infrastructure, so if you’ve invested in security, the risk of damage is greatly reduced.

Finally, make sure you partner with solution providers who understand the need for cybersecurity. The platform solutions that Slotegrator offers are equipped with a full suite of comprehensive tools to protect the online casinos and betting shops that use them. All of the gaming content available for integration comes from trusted game developers, and the technologies used by the solution providers are thoroughly tested to meet today’s security standards.

If you would like to learn more about how we protect our customers, please contact our managers.

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