Gambler busted flogging stolen data to gaming firms

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A gambler who was trying to pay off debts related to his addiction by selling customer details belonging to bingo companies has been caught out.

Marc Ben-Ezra, who worked under the pseudonym of Malcolm Edwards, admitted acquiring user data of 65,000 Foxy Bingo customers before offering it to a host of gaming industry contacts in return for cash.

Cashcade, Foxy Bingo's marketing company and data controller for its customer information, was concerned and contacted a private investigations firm to buy the data from Ben-Ezra and look through it.

Cashcade believed the data was stolen in 2008 and then sold to Ben-Ezra, who was living in Israel at that time. The perpetrators of that breach have not been identified, but investigations are ongoing.

After Cashcade handed over its findings to the Information Commissioner's Office (ICO), it emerged customer information relating to 404 Gala Coral customers from 2008 was also included in the sold data.

The ICO continues to push for the government to activate the 2008 legislation that would allow courts to consider other penalties like community service orders or the threat of prison.

The data protection watchdog was able to track Ben-Ezra down, who fully cooperated with the investigation, handing over the laptops on which the data was stored.

The defendant said buying and selling customer data was a widespread practice when he worked in the gaming industry in Israel.

No punishment to fit the crime

Although Ben-Ezra was told to pay Cashcade £1,700 and hand over £830.80 in legal costs, the gambler had already spent £25,000 acquired by selling the stolen data on paying back debts.

An ICO spokesperson told IT Pro the courts were not able to retrieve the thousands of pounds spent by Ben-Ezra.

Information commissioner Christopher Graham said regulatory bodies did not have a punishment fit for crimes such as those committed by Ben-Ezra.

"The ICO continues to push for the government to activate the 2008 legislation that would allow courts to consider other penalties like community service orders or the threat of prison," Graham said.

"This case shows that the unlawful trade in personal information is unfortunately still a thriving and lucrative activity. Mr Ben-Ezra sold people’s personal details on an industrial scale."

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