Abstract

In this paper, we present a case of a technology based fraud perpetrated in slot machines via social engineering and software control overrides, yielding a $420,000 plus potential loss to a regionally based casino. Casinos are an alluring industry for technology-based fraudulent activity in that systems are heavily cash based, yielding the potential for innovative fraudsters to circumvent controls to commit scams, cons, fraud and outright theft. This case is illustrative of the need for effective IT auditing and control implementations in the multifaceted casino business environment. Here, we discuss the background to the case, casino operations in general, fraud at casinos, general as well as IT-specific controls for casinos, and cover how a slot machine works. Finally, we present the specific case of the Birdland Casino slot machine scam, and examine the implications of this fraud in terms of an analysis of general IT controls.

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Importance of IT Controls for Casino Slot Machines: A Case of Social Engineering and Software Based Fraud

In this paper, we present a case of a technology based fraud perpetrated in slot machines via social engineering and software control overrides, yielding a $420,000 plus potential loss to a regionally based casino. Casinos are an alluring industry for technology-based fraudulent activity in that systems are heavily cash based, yielding the potential for innovative fraudsters to circumvent controls to commit scams, cons, fraud and outright theft. This case is illustrative of the need for effective IT auditing and control implementations in the multifaceted casino business environment. Here, we discuss the background to the case, casino operations in general, fraud at casinos, general as well as IT-specific controls for casinos, and cover how a slot machine works. Finally, we present the specific case of the Birdland Casino slot machine scam, and examine the implications of this fraud in terms of an analysis of general IT controls.