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WARNING - ABSOLUTE & ULTIMATE BET POKER SCAM  +3   
Hi all,

Just read this and thought it a good idea to post this here:

Sorry for the length of post: taken from Sydney Morning Herald

______________________________________________

September 30, 2008 - 2:35PM



Detective work by an Australian online poker player has uncovered a $US10 million cheating scandal at two major poker websites and triggered a $US75 million legal claim.

In two separate cases, Michael Josem, from Chatswood, analysed detailed hand history data from Absolute Poker and UltimateBet and uncovered that certain player accounts won money at a rate too fast to be legitimate.

His findings led to an internal investigation by the parent company that owns both sites. It found rogue employees had defrauded players over three years via a security hole that allowed the cheats to see other player's secret (or hole) cards.

Now the owners of the sites have filed a $US75 million claim against the makers of the software that powers them, claiming they were unaware of the security holes when they purchased the sites in 2006, MSNBC reported this month.

Official investigators - brought in following Josem's revelations - have named one of the world's most successful poker players, Russ Hamilton, as the main perpetrator of the fraud.

Suspicions of unfair play at Absolute Poker were first raised late last year. Josem plotted the win rate of several thousand players against the suspicious accounts and found the cheats won money at a rate that was 100 times faster than a good player could reasonably win.

The cheating accounts played every hand as if they knew every card that the other players had and folded hands at just the right time.

The findings led to an investigation by the Kahnawake Gaming Commission, which licenses several hundred online casinos and poker rooms. It found Absolute Poker attempted to cover up the cheating by deleting gaming logs and records and fined it $US500,000.

Absolute Poker repaid those who had lost money but refused to release the cheater's identity because a private settlement was reached.

A few months later, Josem and players from the Two Plus Two online poker forum used the same methods to uncover almost identical cheating occurring at Absolute Poker's sister site, UltimateBet. One player account, NioNio, netted a profit of $300,000 in just 3000 hands and won 13 of the 14 sessions recorded on the MyPokerIntel.com website, which tracks high stakes online tournaments.

"The chances of a player winning at those rates is approximately equal to winning a one-in-a-million lottery on six consecutive occasions," said Josem.

"In poker, a contest of limited information, if you know what cards your opponent has, you'll never lose - and this is precisely what happened."

The cheats passed their fraudulent winnings between multiple user accounts in an attempt to avoid detection.

The Kahnawake Gaming Commission today released the initial findings of an audit it is conducting into UltimateBet.

It named World Series of Poker winner Russ Hamilton, previously associated with Ultimate Bet's affiliate program, as the main perpetrator. Commission spokesman Chuck Barnett said the names of others involved would come out when the final report was released in November.

The commission ordered UltimateBet to begin refunding all players adversely affected by the cheating scheme and remove any staff connected with the scheme by November 3.

The site has also been fined $US1.5 million and will have its licence revoked if it does not comply with any of the sanctions.

An Australian company, Gaming Associates, conducted the official investigations on both UltimateBet and Absolute Poker for the commission. Its principal consultant, Alan Pedley, refused to discuss the specifics of the findings as he was bound by a non-disclosure agreement.

As a result of his detective work Josem has been employed by the leading online poker site, PokerStars, to work on its security team.

He said other sites weren't vulnerable to the same cheats because they used different software and had more credible operators.

"Just as not all insurance companies behave the same way as HIH, and not all politicians are the same as Brian Burke, not all poker companies are the same as UltimateBet and Absolute Poker," Josem said.

"The employees of the leading online poker operators simply don't have the feature or ability to view hole cards of players during a hand and they don't have this ability because of a security decision that was made when their software was first written many years ago."

Josem said people could still be confident about playing on online poker sites because, if something untoward happened, it could easily be caught by statistical analysis, precisely as happened in this situation.

"Every online poker hand is recorded electronically and can be analysed after the fact. Just as the third umpire video replay can be used to enforce the rules in cricket, third-party analysis can be used to enforce the rules of poker."


     
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this is well known alrdy

     
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Sry - but old news

     
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this is the first time i heard of it but i'm not surprised...when it is about the money the criminals not far away. now i ask myself if its the only two sites where its happen!?!
Confused

     
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.OLD !!!!
hehe .. .but still good to post here for those who dont know.
yes online poker is vulnerable to exploits like these and p[layer collusion
deal with it

     
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wow im glad i was never a full time member at those two sites thanks for the heads up chief

     
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Superusers at Absolute and Ultimate Bet? Who had heard of that Cool

But no problem. They merge to the cereus network and all will be forgotten.

     
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Yes old news but intresting to read again Smile

     
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Not old news, the scom is old but the KGCs actions are what is being reported here,
here are the sanctions

Ultimate Bet is directed that by November 3, 2008 it shall, under the close supervision of the KGC, its employees and agents, commence refunding all players accounts found to have been adversely affected by the cheating of individuals under the control and supervision of the licensee. It is estimated that Ultimate Bet has to date reimbursed $6.1 million USD to players' accounts found to have been adversely impacted by the cheating activity

2. Ultimate Bet is directed that by November 3, 2008 it is to remove any and all persons deemed as "unsuitable" by the KGC from all involvement with the company, which shall include all levels of ownership, management and operation. Ultimate Bet during that time period until November 3, 2008 is required to continue to provide complete details of all day-to-day operations of the company. These shall include financial as well as daily gaming records to Frank Catania and or his assigns. It is anticipated that this action will provide full disclosure and prevent any further improprieties or wrongdoing from occurring while ensuring that the public is being offered fair and honest games and all player monies will be protected.

3. Ultimate Bet's control system as defined in section 9 of the Kahnawa:ke Interactive Gaming Regulations has been modified to prevent any further incidents of cheating or related improprieties.

4. Ultimate Bet will not delete or modify any logs including but not limited to web logs and game logs as required by the Kahnawa:ke Interactive Gaming Regulations and will continue to have those logs immediately available for inspection by the KGC or its agents.

5. Ultimate Bet shall immediately pay a fine of $1.5 Million USD to the KGC for its failure to implement and enforce measures to prohibit and detect fraudulent activities.

6. Ultimate Bet's failure to comply fully with these measures will result in the immediate revocation of its KGC gaming permit.

     
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yes harsh penalties but fair.but will we ever know how much they really took,were the guys busted just the fall guys for someone higher up?the truth is out there.

     
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hm...well at least some of those scammers were caught and the fine should be high enough for UB to take measures enforcing fair play Blink Nice move in my eyes.

     
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i dont will play @ absolute or ultimate.............

i dont understand why so many players play there ....... Thumbs Down

     
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Posted by lockept93:
i dont will play @ absolute or ultimate.............

i dont understand why so many players play there ....... Thumbs Down


They accept american players. And this is something not to many poker rooms do these days. Ultimate bet is also a long running room and has a good advertiser in Hellmuth.

     
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Posted by scl1975:
yes harsh penalties but fair.but will we ever know how much they really took,were the guys busted just the fall guys for someone higher up?the truth is out there.

Its in the report somewere (amount to be paid back to victoms)
I used to like UB probably still would, and soon all those involved will be gone and im sure they will do there best to ensure this doesnt happen agin, its been quite expensive.

     
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Really old but probably nice to know if you havent heard about it

     
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As long as there are money to win involved there always will be people cheating. Ive played live game that also was rigged. So im not suprised.
But I dont think the companies are involved in anyway. Why risk a 100 million dollars business to gain 1 million dollars. But they should have harder controlls over their empoyees


     
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wow never heard of this before i googled it and it came up lol

     
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nice info..

     
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Posted by TeeOhDoubleD:
Hi all,

Just read this and thought it a good idea to post this here:

Sorry for the length of post: taken from Sydney Morning Herald

______________________________________________

September 30, 2008 - 2:35PM



Detective work by an Australian online poker player has uncovered a $US10 million cheating scandal at two major poker websites and triggered a $US75 million legal claim.

In two separate cases, Michael Josem, from Chatswood, analysed detailed hand history data from Absolute Poker and UltimateBet and uncovered that certain player accounts won money at a rate too fast to be legitimate.

His findings led to an internal investigation by the parent company that owns both sites. It found rogue employees had defrauded players over three years via a security hole that allowed the cheats to see other player's secret (or hole) cards.

Now the owners of the sites have filed a $US75 million claim against the makers of the software that powers them, claiming they were unaware of the security holes when they purchased the sites in 2006, MSNBC reported this month.

Official investigators - brought in following Josem's revelations - have named one of the world's most successful poker players, Russ Hamilton, as the main perpetrator of the fraud.

Suspicions of unfair play at Absolute Poker were first raised late last year. Josem plotted the win rate of several thousand players against the suspicious accounts and found the cheats won money at a rate that was 100 times faster than a good player could reasonably win.

The cheating accounts played every hand as if they knew every card that the other players had and folded hands at just the right time.

The findings led to an investigation by the Kahnawake Gaming Commission, which licenses several hundred online casinos and poker rooms. It found Absolute Poker attempted to cover up the cheating by deleting gaming logs and records and fined it $US500,000.

Absolute Poker repaid those who had lost money but refused to release the cheater's identity because a private settlement was reached.

A few months later, Josem and players from the Two Plus Two online poker forum used the same methods to uncover almost identical cheating occurring at Absolute Poker's sister site, UltimateBet. One player account, NioNio, netted a profit of $300,000 in just 3000 hands and won 13 of the 14 sessions recorded on the MyPokerIntel.com website, which tracks high stakes online tournaments.

"The chances of a player winning at those rates is approximately equal to winning a one-in-a-million lottery on six consecutive occasions," said Josem.

"In poker, a contest of limited information, if you know what cards your opponent has, you'll never lose - and this is precisely what happened."

The cheats passed their fraudulent winnings between multiple user accounts in an attempt to avoid detection.

The Kahnawake Gaming Commission today released the initial findings of an audit it is conducting into UltimateBet.

It named World Series of Poker winner Russ Hamilton, previously associated with Ultimate Bet's affiliate program, as the main perpetrator. Commission spokesman Chuck Barnett said the names of others involved would come out when the final report was released in November.

The commission ordered UltimateBet to begin refunding all players adversely affected by the cheating scheme and remove any staff connected with the scheme by November 3.

The site has also been fined $US1.5 million and will have its licence revoked if it does not comply with any of the sanctions.

An Australian company, Gaming Associates, conducted the official investigations on both UltimateBet and Absolute Poker for the commission. Its principal consultant, Alan Pedley, refused to discuss the specifics of the findings as he was bound by a non-disclosure agreement.

As a result of his detective work Josem has been employed by the leading online poker site, PokerStars, to work on its security team.

He said other sites weren't vulnerable to the same cheats because they used different software and had more credible operators.

"Just as not all insurance companies behave the same way as HIH, and not all politicians are the same as Brian Burke, not all poker companies are the same as UltimateBet and Absolute Poker," Josem said.

"The employees of the leading online poker operators simply don't have the feature or ability to view hole cards of players during a hand and they don't have this ability because of a security decision that was made when their software was first written many years ago."

Josem said people could still be confident about playing on online poker sites because, if something untoward happened, it could easily be caught by statistical analysis, precisely as happened in this situation.

"Every online poker hand is recorded electronically and can be analysed after the fact. Just as the third umpire video replay can be used to enforce the rules in cricket, third-party analysis can be used to enforce the rules of poker."


maybe old to some, for me its a news...

     
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ofcours not there is all poker rooms scamming for example nooble poker i asked to support haw many points i get from 1$ in rake they told me 10 points i was lose like 10-15$ in rake i soulded hawe 100-150 points but i hawe only 24 points from 10-15$ rake is that normal they taking much to bih rakes en giving much to low points Sad

     
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