Why Your State Lottery Has Probably Been Rigged by Hackers (explainer)

Dec 19, 2015

Feds are examining jackpot payouts in over three dozen American states where cronies of a notorious lottery-hacking employee have won some very big prizes. 

Fired security director of the Multistate Lottery Association, Eddie Tipton, has already been busted for a get-rich-quick scheme that involved rigging computers to generate winning numbers in Iowa.

But now investigators have discovered that, for at least six years, he had been doing the same for his family and friends in Colorado, Oklahoma and Wisconsin.

Tipton, 52, was convicted last summer for claiming a $16.5-million fraudulent win he obtained by installing hacking software into his Iowa-based lottery commission’s computer system.

Another $8-million of pilfered payoffs has so far been tracked down in three of the other states mentioned; but the sophistication and duration of Tipton’s insider hack has 37 more worried their lotteries have been compromised too.

That’s a valid concern, because information-technology specialist Eddie Tipton worked at the Multistate Lottery Association’s main hub in Des Moines since the early 2000s and was promoted to security director there in 2013.

One Iowan law enforcement official who spent more than two years bringing the lottery fraudster to justice said it would be “pretty naïve” to think Tipton only rigged four state jackpots when he had access to all fifty.


Criminal Fraud, Hacking, Explainer




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