Gaming Sites Face Cyber Extortion

CYBERSPACE – The ill-fated online gambling industry, while one of the most lucrative industries in the history of the Internet, aside from the porn industry, has been plagued with setbacks, federal regulations, credit card processing snafus, and now a recent wave of cyber extortion that has put a major crimp in the side of many online gaming sites.

And while the online gaming industry is no stranger to extortion, this recent wave of cyber attacks, which started several months ago, is fiercer than previously recorded and has come from all sides of the globe.

In some cases extortionists have managed to shut down numerous gambling sites until hacker demands are met, and according to reports, Eastern Europe is fast making a name for itself as a confirmed hotspot for cyber extortionist gang activity with proven success rates.

USA Today reports that dozens of online gambling sites have recently been bullied into putting up tens of thousands of dollars to avoid denial of service (DDoS) attacks. DDoS attacks are successful because they clog a network's bandwidth with so much incoming traffic that no outgoing traffic is able to escape.

One particular gambling company based in Antigua ponied up a reported $30,000 just so it wouldn't miss out on incoming gambling profits estimated at more than $5 million.

The flood of attacks is being attributed to the fact that gaming sites are often left with little legal recourse and therefore nearly nothing can be done to avoid extortionists other than enforcing internal security measures.

Rather than face a shakedown or the unwanted attention of authorities, some of the smaller gambling sites have reportedly shuttered their doors.

Typical extortionist tactics are delivered via email prior to major sporting events. The threats are sometimes followed by a sample attack on a site so the hacker wields more power and effects a faster response. The currency of cyber extortion is typically in American dollars.

Investigations into the recent trend have confirmed that the extortion cases are so far confined to online gaming sites, although security experts are concerned that hacker extortion could easily spread throughout many online industries that prefer to keep low a low profile and tend to avoid the attention of authorities and the FBI.

According to USA Today, there are an estimated 2,000 gaming sites in existence and since online gambling is close to being illegal in the U.S., there is no public knowledge of where many gambling sites are headquartered.

Recent industry statistics state that online gambling is a $5.7 billion industry that is expected to double over the next two years.

Over the past two years the U.S. has implemented legislative pressures that have forced the majority of online gambling companies offshore, and Congress has been working through a new law that would prohibit the use of credit cards, checks, or electronic fund transfers for Internet gambling.

The U.S isn't the only country to ban online gambling. South African lawmakers recently drafted a National Gambling Bill that calls for a ban on online gambling and advertising for Internet casinos. South Korea and the Philippines have also taken firm stands against Internet gambling.

Although Canada and many other countries continue to embrace the enormous revenue potential of gambling sites.

A recent report out of Washington predicts that the future growth of the online gaming industry will occur mainly outside of the United States, although Americans now account for half of all gaming industry revenues.

Copyright © 2024 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Mile High Unveils New Unscripted Studio 'Sex on Sight'

Mile High Media has launched a new unscripted-content studio, Sex On Sight.

Belgian Producer Dennis Black Magic Sentenced to 7 Years for Rape, CSAM

Noted Belgian adult producer and director Dennis Black Magic has been sentenced to 7 years in prison and a $4,000 fine for the rape of eight models and distribution of CSAM.

Seoul Authorities Force Cancellation of Adult Expo for 'Distorting Perceptions of Sex'

After Seoul authorities repeatedly prevented 2024 KXF The Fashion from finding a suitable venue, event organizers have canceled the popular Korean adult industry expo, which was scheduled for this week.

FSC to Hold Discussion on Adult Industry Rights With Congressional Candidate Joe Cohn

Free Speech Coalition will hold a virtual discussion with Joe Cohn, a strong advocate for the adult industry’s rights who is running for Congress in November.

Sophie Dee, Ricky Johnson to Deliver 'XBIZ Talks' at Miami Conference

XBIZ is pleased to announce that Sophie Dee and Ricky Johnson will each deliver an “XBIZ Talk” at next month’s XBIZ Miami conference

FSC to Host Webinar on Derisking and the Adult Industry

The Free Speech Coalition (FSC) is hosting a webinar on derisking, titled "Derisking: Examining Its Impact on the Adult Industry's Access to Banking," on April 24 at 11 a.m. (PDT).

Democratic Governor Fails to Veto Kansas Age Verification Bill

Kansas’ Democratic governor, Laura Kelly, expressed strong reservations about the state’s version of the age verification bills being sponsored around the country by anti-porn religious conservative activists, but ultimately decided not to veto it, allowing the legislation to become law by default without her signature.

FSC's Alison Boden Testifies Against California Age Verification Bill, Urges Action to Defeat It

Free Speech Coalition Executive Director Alison Boden testified Tuesday against AB 3080, California’s version of the age verification bills being sponsored around the country by anti-porn religious conservative activists.

Phoenix Marie Sues Aylo, Danny D Over Incident on Digital Playground Set

Phoenix Marie has filed a lawsuit against Aylo, performer/producer Danny D and other defendants, alleging she has suffered defamation and damage to her career over a 2023 incident on a Digital Playground set in Spain.

New Premium Creator Platform 'Lemon Social' Launches

Premium creator platform Lemon Social has debuted.

Show More