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Russian casino cheats engineered a software program which made American slot machines go haywire in June 2014, according to a report released this week by Wired. The software caused several slot machines in the Lumiere Casino in St. Louis to produce a “negative hold” over two days in early June 2014.
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A negative hold is when a slot machine loses more cash than it holds, despite not awarding any major jackpots. While such an aberration is not impossible, it is highly improbable, so negative holds are a red flag to casino accountants. When Lumiere’s accountants noticed the statistical anomaly, they immediately assumed someone was cheating the casino.
Lumiere Casino in St. Louis
Accountants alerted the security team at the Lumiere Casino, who pulled up surveillance tapes of the slot machines during June 2 and June 3 of 2014. The tapes revealed a black-haired Caucasian man in a Polo zip-up. The suspect carried a square brown purse. What made him particularly interesting to security was the fact he did not tinker with the slot machines.
The slot machines were games like Pelican Pete and Star Drifter, older EGMs manufactured by Aristocrat Leisure out of Sydney, Australia. The suspect did target Aristocrat machines, while holding his iPhone close to the gaming screen.
How the Scam Worked
Even more interesting, the man would stay at the machine for a few minutes, then walk away. When he returned, that man’s lucky winning streak began. In his gaming sessions, the man could parlay a bankroll of $20 to $60 into a hold as large as $1,300. By targeting several such machines, he collected $21,000 in winnings over a 2-day period.
The most suspicious behavior the man exhibited was his propensity to hover his finger over the “Spin” button on the slot machine before tapping it. As a general rule, players click the Spin button repetitively, with little ritual. For a casino cheat, taking that kind of time between spins is particularly suspicious.
Missouri Gaming Commission’s Alert
After their investigation, the Lumiere Casino turned in their findings to the Missouri Gaming Commission on June 9. The gaming commission issued a statewide alert soon after. When the alert came, several other Missouri casinos learned that they had been hit by the same cheaters.
During their probes, the various casinos learned that a man held an iPhone near an Aristocrat Mark VI model slot machine shortly before he had a run of luck.
The Case of Martin Bliev
Law enforcement authorities tracked the man by his rental car transactions, because they could track him to the cars he drove into Missouri casino parking lots. Through that means, authorities learned he was Murat Bliev, a 37-year-old Russian citizen who lived in St. Petersburg, Russia at the time.
Further investigation showed that Martin Bliev had flown out of the United States on June 6, so he was presumed to be beyond the reach of American authorities. Unfortunately for Martin Bliev, the casino cheating agency he worked for soon sent him back to the United States for more scams, as they were unaware he had been identified.
Four Arrested at Hollywood Casino
In December 2014, Martin Bliev returned to Missouri to scam casinos again. This time, he met with three other men: Ivan Gudalov, Igor Larenov, and Yevgeniy Nazarov. After the four men entered the Hollywood Casino in St. Louis, authorities arrested them. Federal authorities charged them with conspiracy to commit fraud, because their casino scams spanned several US states.
Martin Bliev, Ivan Gudalov, and Igor Larenov eventually pleaded guilty and were sentenced to 2 years in federal prison. Yevgeniy Nazarov, a Florida resident and a native of Kazahkstan, sought religious asylum and continues to await sentencing. Aristocrat Leisure told WIRED that Nazarov “continues to assist the FBI with their investigations”, so there is evidence he is working with authorities to help track the St. Petersburg ring.
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More about Russian Casino Cheats
The WIRED story on Russian casino cheats details the wide scope of the scamming operation, including revelations from Darrin Hoke of the international scope of the crimes. Hoke, who was the Surveillance Director at the Lake Charles, Louisiana-based L’Auberge du Lac Casino Resort’s former Director of Surveillance, tracked 25 casino cheats as far afield as Turkey.
As the story goes, Russian casino scams have been on the rise since 2009, when Vladimir Putin banned casino gambling in Moscow and most other parts of the Russian Federation. Putin thought a casino ban keep Georgian crime syndicates from scamming money from Russian casinos, but it also put the St. Petersburg casino cheat syndicate out of business. That syndicate instead began sending agents to foreign countries to cheat casinos.
The ability to do so required finding gaming machines and reverse engineering their software programs. By doing so, programmers for the syndicate could find ways to exploit the code in older electronic gaming machines like the Aristocrat Mark IV.
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Share this using the hashtag #SWE.
Reverse-engineering a 45-year old ALU.This post from Ken Shirriff explains how the ALU worked in Intel’s first 8-bit microprocessor, the 8008. If you don’t know why that matters, “the 8008 is historically important because it essentially started the microprocessor revolution and is the ancestor of the x86 processor family that you are probably using right now.”
Understanding htop. htop is a powerful process monitor that reveals much more data about a machine’s performance than regular top. Here’s a great overview that explains what all the fields, graphs, and related stuff means.
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“Smart Contracts” are neither?This post from Ed Felten’s Freedom to Tinker explains how smart contracts, as used in some blockchain-based systems, aren’t really smart and aren’t really contracts.
Have $55? This tool will destroy many devices just by plugging it in. The “USB Killer” device does what it says on the tin, permanently damaging the USB port or entire device in many pieces of hardware. It does this by sucking power from the device, storing it in a series of onboard capacitors, then barfing a giant voltage spike across the USB/Lightning port of the target device, causing it to have a bad day. Maybe Apple’s courage in removing ports was just a brilliant bit of foresight.
A hole in the cloud. Another great 33C3 talk was this series of talks discussing how memory deduplication in virtual machines can be exploited. The three methods (CAIN, CAIN+Rowhammer, and Flip Feng Shui) combine to enable things like SSH login, browser exploits, and a compromise of the software update process.
Cheating a slot machine through the power of random numbers. Using a cell phone app to exploit the PRNG in a slot machine lead to huge casino losses. Read more in this piece from Wired. How much can you exploit the machines for? Try “upwards of $250,000 in a single week.”
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The people responsible for sending the missile warning have been sacked. An alerting system test at Spangadhlem Air Base in Germany probably lead to much freaking-out, as a message was sent telling airmen that a missile was inbound to the base and to seek shelter immediately. Eight minutes later, the all clear was sent.
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“Web Bluetooth” - two words I never wanted to see together. Chrome version 56 has added support for the Web Bluetooth API, opening up your Bluetooth devices to fun and exciting exploits from the Internet… I mean, opening up your Bluetooth devices to interact with websites for things like data exchange or software updates. Ostensibly, you must affirmatively opt-in before any data about your Bluetooth devices is shared with the website, but we’ll see how well that actually is implemented.
In the security corner: websites continue to find ways to fingerprint users, that doll might be a spy, and new Mac malware comes from Russia, with love:
- In news I’m certain surprised absolutely nobody, researchers have developed a technique to track users even if they use multiple browsers. As you might guess if you’re familiar with fingerprinting techniques, it relies primarily on WebGL tasks, most of which execute in very similar ways across browsers. According to the researchers, they are able to successfully fingerprint over 99% of users.
- The “My Friend Cayla” doll was classified by the German government as an illegal espionage apparatus, because it contains a microphone and is disguised as another object. The Germans, for some reason, are very wary of anything that could conceivably be used for surveillance. Access to the doll is, of course, not very secure, contributing to the problem.
- Xagent malware for the Mac has been blamed on APT28, the same Russian hacking group allegedly responsible for the DNC leaks in the 2016 election. Xagent has many capabilities and uses domains that look like Apple domains to hide their C&C services. Of course, attributing malware to any group is more art than science, but this is still noteworthy because of how strong this malware is.
As a programming note, we won’t produce a rundown next week. Look for the next one on Monday, March 6. Further, we’re continuing to experiment with the best way to deliver this content. Look for video features to join this rundown soon. If you have feedback, or think there’s something I should cover next time, leave a comment!
Cover photo: A slot machine interface. Note: the machine pictured is not made by the manufacturer of the machines that were exploited in the slot machine story. It's just a flashy pic of a slot machine. Credit: Bloomberg / Getty