back to article Lottery IT security boss guilty of hacking lotto computer to win $14.3m

Iowa state lottery's IT security boss hacked his employer's computer system, and rigged the lottery so he could buy a winning ticket in a subsequent draw. On Tuesday, at the Polk County Courthouse in Des Moines, Iowa, the disgraced director of information security was found guilty of fraud. Eddie Tipton, 52, installed a …

  1. The_Idiot

    'Iowa...

    ... lottery CEO Terry _Rich_'?

    You can't make this stuff up. You really can't... :-)

  2. Eddy Ito

    The real offense was undermining the public's "trust" that the state lottery was playing a fair game. After all, that could lead to decreasing ticket sales and lost revenue for the state.

    1. Anonymous Coward
      Anonymous Coward

      No, the real offense is how a people can so easily rationalize allowing their own government to serve as everyone's personal bet-taker.

      1. phuzz Silver badge

        Surely the real tragedy is that people can't do basic maths and do something better with their money.

        1. 404
          Childcatcher

          The Free No-Guilt card is played there - lottery 'profits' is supposed to go to the schools...

          No, I don't gamble. Learned in the 3rd grade matching coins that both Probability and Math are dicks.

        2. Anonymous Coward
          Anonymous Coward

          >Surely the real tragedy is that people can't do basic maths and do something better with their money.

          I think the same way about people who buy alcohol and cigarettes.

          In this case, however, someone did do the maths. It turns out, that's not allowed.

          1. Roq D. Kasba

            Goes to schools - whose state support is cut almost to the dollar by same amount...

            1. Anonymous Coward
              Anonymous Coward

              And don't forget that lotteries are basically more taxes on the poor, since they buy most of the tickets.

        3. Chris 244

          Basic Maths

          There have been instances where a Lotto ticket was a good investment. Here in Canada we have a Lotto that costs $5 for 3 plays with a 1 in 28.6 million odds of winning a (sometimes) $50 M jackpot with overflow into a series of up to 50 $1 M prizes.

          So, wait for a big pot paid for by others and then buy just over 9.5 M cards at a total cost of $48 M and you can cover ALL possible winning combinations as well as collecting all of the overflow prizes. Even if you have to split the jackpot and several overflow prizes you still come out ahead.

  3. Bronek Kozicki

    watch this space

    They guy seem guilty but the evidence seem to be lacking. I am sure we will hear more about this.

    1. Anonymous Coward
      Anonymous Coward

      I live in the state, there's more to this story

      This story has been in the news around here for several years. The prize went unclaimed for many months, and the year that you have to cash it was almost done, so there were stories in the news wondering if someone had the jackpot winner lost in the bottom of a purse or if it had been accidentally thrown out.

      A few hours before the time expired, an out of state lawyer delivered the winning ticket to the lottery office in the name of a trust in Belize. State law requires that lottery winners be made public, but the lawyer said he couldn't divulge the the person or persons behind the trust and eventually dropped the matter. The state ended up using the prize money to fund some other lottery prizes so it didn't go to "waste".

      Obviously dropping a claim to millions of dollars will raise some suspicions, so the state began investigating, but they couldn't learn much. Eventually they released the security tape footage from the convenience store where the mysterious person bought the ticket, asking for the public's help to identify him. Someone figured out who he was, and the rest of the investigation put the pieces together. AFAIK this guy had not been suspected previously, the investigation had focused around the idea that maybe the ticket had been criminally obtained by the bearer and that's why they wanted to hide their identity, or they were trying to avoid paying taxes on the prize.

      I know it looks like there's not much evidence from what the story says, but I'm sure considering how long this investigation has been going on, they wouldn't be moving on him unless they were sure they had enough for a conviction.

      What this goes to show is that allowing people to claim lottery prizes anonymously is bad policy - he would be living it up in Belize if they did that here. Also that the state lottery's IT oversight was poor - like the NSA they placed too much trust in those with administrative access. But in the end the bad guy never got a cent and will probably go to prison for a long time for his trouble, so the system worked "well enough" even if there is some obvious room for improvement.

      1. Sir Runcible Spoon

        Re: I live in the state, there's more to this story

        If the guy was *really* clever he would have given himself tickets for decent value payouts, but not the jackpot. He might have gotten away with that forever if it weren't for those pesky CCTV camera's.

  4. Anonymous Coward
    Anonymous Coward

    I have to admire the technical aspect of rigging the draw, very professional. Amateur execution though in buying the ticket and trying to claim, if it wasn't for those meddling kids he'd have got away with it.

    Watch this space for a Hollywood movie.

    1. Anonymous Coward
      WTF?

      Yeah, wasn't this plot supposed to have an accomplice who "wins" the lottery jackpot, and then later divides the spoils with the inside man? But instead tries to have it all, by murdering him? I say we've been cheated!

    2. jonathanb Silver badge

      He should have gone for a couple of smaller wins rather than the jackpot, then nobody would have noticed.

    3. Roq D. Kasba

      This is why the lottery in the UK is a physical ball draw with checks and randomisations.

      This is also why voting machines are a dreadful idea. $14M is nothing compared with the value of forcing an election result. Pencils on paper with entirely open transport and counting works because there is no hidden element. Nobody trusts reach other, which keeps it fair and hard to corrupt as each side is always watching for fairness.

      1. TRT Silver badge

        Are you saying...

        that the UK lottery is a load of old balls?

        :)

        But if we are to look at cybercrime and the UK lottery, and the draw itself is impossible to cheat due to the physical nature of the draw, then we have to look to the ticket sales and accounting method for the weakness.

        1. Sir Runcible Spoon

          Re: Are you saying...

          "impossible to cheat due to the physical nature of the draw"

          Difficult? Yes. Impossible? No.

          Give one of those machines to a decent stage magician to work on and he will come up with a way to do it.

          1. Joey M0usepad Silver badge

            Re: Are you saying...

            I think part of the security setup would be not allowing stage magicians to tamper with it :)

  5. Irony Deficient

    side effects?

    I take it that people who weren’t involved with these shenanigans and who won non-jackpot prizes in that particular drawing aren’t having their winnings clawed back?

    1. TRT Silver badge

      Re: side effects?

      Their prizes would have been bigger if the jackpot ticket hadn't won?

  6. elDog

    There is no doubt this has been a fascinating case," Rich said in a statement. "We respect the court's work and the jury's verdict. The facts in this case have enabled us to further enhance our layers of security to protect the integrity of lottery games, and that ultimately has been a positive."

    How many layers of Charmin TP does your site use, Mr. Rich? Have you ever had any independent outside audits? Or is this just another example of "the state is never wrong"? Connections with Kenneth Blackwell? Members of the same party? Or just thieves?

  7. Mage Silver badge
    WTF?

    Lotteries

    A tax on the poorer people usually.

    I can't see how you can trust a computer based system at all. I'd presumed this was why some use bouncing numbered balls on live TV.

    1. Turtle

      @Mage Re: Lotteries

      "A tax on the poorer people usually."

      The problem with calling it a "tax" is that no one is obligated to play.

      1. Michael Habel

        Re: @Mage Lotteries

        A shame that TV's can't work that way....

      2. Joey M0usepad Silver badge

        Re: @Mage Lotteries

        "The problem with calling it a "tax" is that no one is obligated to play."

        "ok so some metphors dont bear close examinatio" - Neil Pye

        1. Turtle

          @Joey M0usepad Re: @Mage Lotteries

          My Original Post: "'A tax on the poorer people usually.' The problem with calling it a "tax" is that no one is obligated to play."

          Your Reply: "'The problem with calling it a "tax" is that no one is obligated to play.' ok so some metaphors don't bear close examination" - Neil Pye"

          I've actually rethought my position on this. I've decided that it *is* a tax - but not necessarily on the poor. It is a tax on stupidity and magical thinking - which are not necessarily related and are not necessarily found together.

  8. ZSn

    Physics

    I thought that they normally used physical methods, such as electrical noise (zenner diodes) or more graphically by picking bouncing balls (steady on there in the back of the class). Using software to pick the tickets seems a bit suspect in the first place.

    1. JeffyPoooh
      Pint

      Re: Physics

      Zener diodes or similar electrical noise generators would likely still go through a PC, and so couldn't be trusted in this context.

      It's like Random.org that claims to provide random numbers based on atmospheric static, but it might just be an NSA front. You never know...

      "Hey, I asked the folks at Random.org and they denied any connection to the NSA. So you're wrong." Ah, okay then, that proves it.

      Disclaimer: Random.org is just an example. I'm sure that they're trustworthy.

    2. Yet Another Anonymous coward Silver badge

      Re: Physics

      For ERNIE (premium bonds) they do - but that's because only little old ladies buy premium bonds and little old ladies trust the government. Idiots buy lottery tickets and idiots like to see balls on TV.

      1. Roq D. Kasba

        Re: Physics

        Pick a number between 1 and 10. Wrong! I was thinking of (different number), you lose.

        That's why we see balls in a machine on TV.

      2. Kracula
        Trollface

        Re: Physics

        "...idiots like to see balls on TV"

        I totally support your view that balls on TV are degrading. Maybe Bulgarian airbags will appeal to a more educated audience?

        1. Richard Taylor 2

          Re: Physics

          Well hopefully with the electorate throwing one out in the UK we will see a little less Balls on UK TV.

  9. Sureo

    I don't buy lottery tickets myself but I know people who do. Tell them the odds of winning and they still buy tickets. It's a kind of dream or fantasy trip. Mostly they couldn't care less where the numbers come from. Almost everything in life is rigged in some way, isn't it?

    1. Roq D. Kasba

      +1 for 'couldn't care less'

      Yes, the odds are somewhat against the punter, but on the basis that someone wins, it's a moon shot with built-in low churn rate, so actually less expensive than, say, scratchies.

      Fruit machines are a mugs bet, small prizes and very fast churn, even if they return 70-98% of stake money, the rate of play cumulatively takes it all over an hour. The lottery at least is on a glacial timeframe by comparison.

    2. Michael Habel

      As Zaphod once remarked:

      That's impossible!

      Trillian responds back:

      No... Just very, very improbable.

      Lottery Tickets are kinda like this... If the chances of ever winning were 0:∞-¹ then nobody would bother playing it at all...

      1. Sir Runcible Spoon

        "If the chances of ever winning were 0:∞-¹ then nobody would bother playing it at all..."

        Unless the prize was becoming a god or something.

    3. Anonymous Coward
      Facepalm

      it's a desperation tax, and you can identify those who are so desperate that they will play a lottery

  10. NanoMeter

    Never learn

    And still they will continue to use a computer RNG?

  11. Anonymous Coward
    Anonymous Coward

    Lottery for idiots

    In the UK psychical balls are used to stop computer fraud as bouncing balls cannot be calculated. My brother doesn't know what a random number is and believes he can use a calculator to work out the lottery numbers. I pray he never wins or I'll never hear the last of it.

    1. Ulaavi
      Devil

      Re: Lottery for idiots

      "psychical balls are used to stop computer fraud..."

      Blimey, heard of psychics talking to the dead, these are some serious balls if they can do this

      1. JeffyPoooh
        Pint

        Re: Lottery for idiots

        My balls are psychical.

      2. Anonymous Coward
        Anonymous Coward

        Re: Lottery for idiots

        But you can use statistical analysis. My missus does from time to time and she almost always wins a tenner at least.

    2. Charles Manning

      Re: Lottery for idiots

      "I pray he never wins"

      Praying doesn't help either.

      1. TRT Silver badge

        Re: Lottery for idiots

        And just what does God do with these two conflicting prayers, eh? "Lemme win, lemme win, lemme win!" "Don't let him win, don't let him win, don't let him win."

        1. Richard Taylor 2
          Happy

          Re: Lottery for idiots

          Depends on which one is more sincere

          1. TRT Silver badge

            Re: Lottery for idiots

            Or go all old school and just smite them both. One for avarice and one for meanness.

            1. Pascal Monett Silver badge

              Not avarice, greed. Avarice is not spending what money you have, greed is wanting more and more and more.

              Interestingly, greed is a cardinal sin, but avarice is not, nor is meanness.

              1. Sir Runcible Spoon

                That's been done - see Bruce Almighty for results

        2. Anonymous Coward
          Anonymous Coward

          Re: Lottery for idiots

          He / She / It works in mysterious ways.

    3. Chris Holford
      Facepalm

      Re: Lottery for idiots

      Ah! -that's why 'Mystic Meg' used to be at the draw.

  12. Lars Silver badge
    Coat

    And then

    There are people who think voting by the internet and using computers is a good idea.

    This sentence ""because in a case where a jury is allowed to speculate on what occurred without actual evidence of what occurred, a jury can engage in all sorts of leaps of logic." represents my opinion about jury system.

    1. JeffyPoooh
      Pint

      Re: And then

      "...voting by the internet..." can certainly increase voter turnout. By trillions...

      1. Michael Habel

        Re: And then

        I say enable voting via. a 1-900 (or your equivalent.. high priced premium Tel Number), the proceeds of which will then go to the Political Party, for whom you voted for....

        I mean this works soooo well for those TV Phone-in Talentless hack shows... + they've got 10+ years under their wheels to prevent that kind of miss-use... I mean what could possibly go wrong!?

    2. Turtle

      @Lars Re: And then

      Well it's kind of rare to come across someone who doesn't believe that a person should be tried by a jury of his peers.

      What kind of system would you prefer?

      1. Lyndon Hills 1

        Re: @Lars And then

        Well it's kind of rare to come across someone who doesn't believe that a person should be tried by a jury of his peers.

        What kind of system would you prefer?

        A jury of his pears.

    3. Jonathan Richards 1

      Re: And then : my opinion about jury system

      Whereas a commenter above writing

      > I'm sure considering how long this investigation has been going on, they wouldn't be moving on him unless they were sure they had enough for a conviction.

      is an equally disturbing remark.

      A jury should never be looking at the person in the dock and thinking "... yeah, must be guilty, the prosecutors wouldn't have brought the case if he was innocent...". The jury is there to test the evidence, and reject the "is guilty" hypothesis when they still have a reasonable doubt. Weakening this protection for the accused (and any of us could be accused) is damn dangerous.

  13. Tubs

    Proof of purchase

    " but could not prove they bought the winning ticket"

    If the guy had the winning ticket, what else do they need for proof?

    Or am I missing something?

    1. Michael Thibault

      Re: Proof of purchase

      "lawyers" == "they"

      And: "they" were running in packs! Suspicious, ya think?

      Unfortunately, once it looked like someone was going down, those lawyers had only to walk away, not run.

    2. jonathanb Silver badge

      Re: Proof of purchase

      It is pretty easy to forge a ticket, especially if you can get black ticket stock.

      1. Tomato42

        Re: Proof of purchase

        what? don't the tickets have to be registered and you get a printout with a unique ID?

      2. JeffyPoooh
        Pint

        Re: Proof of purchase

        Ticket details are recorded in the big computer in the sky.

        And they have serial numbers printed upon them.

        You'll not get far with a DIY printed ticket.

        1. Anonymous Coward
          Anonymous Coward

          Re: Proof of purchase

          Yes, plus if you have a forged ticket there's a good chance the genuine ticket holder will also claim. It won't be difficult to work out which is genuine. Certainly in the UK they know which machine printed the ticket in which town and which shop. Even if they managed to forge all those identifying details they can then resort to cctv footage.

          1. TRT Silver badge

            Re: Proof of purchase

            But if you're the shop owner and you get a big winning ticket handed to you for checking, you might be able to, say, tell the person it's only a £10 win (hence the different noise the machine makes when it matches a win).

            1. Mark Chapman

              Re: Proof of purchase

              No that can't happen. Shops only payout up to a certain small amount. For a bigger win they'll be directed to a lottery office without indication of amount

  14. adnim

    Optional

    And so is your trust in ...

    Humans are fallible, they may have families to support and protect, they may have drug or gambling habits. They might do things that lead them open to blackmail.

    Even if the hardware and software is secure, the human that has access might not be, never has been and never will be.

  15. Anonymous Coward
    Anonymous Coward

    Give me balls any day!

    You know what I mean.

  16. Evil Auditor Silver badge

    ...enhance our layers of security to protect the integrity of lottery games...

    I'm sure they did. Issuing a directive that root kits must not be installed. And installing an additional CCTV camera.

  17. Michael Wojcik Silver badge

    The lottery can be rigged?!!

    This really casts some doubts on Whitey Bulger's 1991 jackpot, I have to say. My faith in state-run games of chance with laughably terrible odds has been challenged.

  18. Tcat

    I think 'for schools' is popular?

    I'm currently in the US, Washington.

    99% sure lotto goes to education.

    I keep meaning to give the kids a dollar or two a month

    And never actually remember.

  19. John Brown (no body) Silver badge

    Don't these lottery organisations...

    ...have rules about employees and their immediate families not being allowed to take part? ISTR that was in the T&Cs of many competitions for much, much smaller prizes back when I was a kid. Or is/was this a local UK thing only?

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