Hacker Steals $200K from EOS Online Gambling App
Startup gaming company EOS lost $200,000 in a hacker attack. The company offers real-money online gambling through decentralized applications (dApps) that use blockchain technology. While the use of blockchain makes user transactions much more secure, it does nothing to fortify the platform against hacker attacks.
EOS offers a variety of games including pai gow poker, blackjack, craps, baccarat, and roulette. Like many other blockchain companies, it allows players to purchase its stock in the hope of earning dividends.
According to investigators, the hacker that attacked the program was using bots that impersonated players. Called cryptocurrency scam bots, they invaded the system's blockchain with fake user accounts to disguise their actions. The hackers themselves sent messages to the platform, threatening it with criminal liability.
The hackers were reportedly able to access the money on the platform with the use of the same hashtag used by the company. The platform suffered a previous loss of $600,000 to a gambler on the same server, but investigators say it is still unclear if the two incidents were related.
As EOS approaches $1 million in losses, users are rightly questioning the security of the platform. It originally launched with dice and slots games on the Ethereum website but drew too much traffic. EOS has since relaunched on its own site, but that move alone cannot explain why hackers were able to breach its security.
In fact, EOS was completely unaware it had suffered an attack and would have remained so if it were not for one of their users. Since the attack was made public by the user, EOS has been forced to admit they have been hit by several smaller attacks.