Hack of Codere Online Gaming Platform Leads to Losses of Over $800K

Posted: Jan 20, 2023 11:43h.

Last updated: Jan 20, 2023 11:43.

Spain-based Nueva Codere spent more than 12 months rebuilding its gaming company after its shareholders bought it. It was hit hard last year after hackers broke into and took over the system, eventually stealing his €744,000 (US$805,000) from his Codere partner.

A sign when Codere launches on NASDAQ in November 2021. The gaming company’s online operations were hacked last year, resulting in losses of more than $800,000. (Image: Twitter)

Nueva Codere has admitted to the US Securities and Exchange Commission (SEC) that it has various deficiencies or “weaknesses” in its internal controls. Unfortunately, they weren’t found before the Codere Online subsidiary was attacked last year. Nueva Codere needed to update regulators as its subsidiary trades on his NASDAQ (ticker symbol CDRO).

Attackers were able to manipulate invoices and steal funds after hacking Codere Online senior management emails. This was his second attack in just two years, as the company suffered a security breach in Spain at the end of his 2020.

come in through the back door

In the most recent breach, which occurred in early 2022, the attackers posed as agents of the Codere Online sales team. They sent fraudulent payment requests to various suppliers, who did not understand the ruse.

As a result, Codere had to cover the payment. The company told his SEC that it contacted the bank that controlled the transfer as soon as it became aware of the hack.

To date, Codere Online has recovered only a small portion of the funds. However, the amount was not specified.

Codere argued that the breach was an isolated incident and had no impact on user deposits. Additionally, no user login information or other sensitive data was lost.

Codere’s internal investigation also found no evidence that sensitive company data was compromised, according to SEC filings. We also found no indication that executives or other employees may have participated in the hack.

Codere is still trying to recover the funds, but according to the filing, it is unable to provide details regarding the ongoing investigation. However, it hints at possible legal action, which could be a clue to the perpetrators. The company says in its annual report it will provide more information about the measures it employs to prevent another hack.

But he also acknowledged that there were internal issues that facilitated the intrusion. It described the “ineffective design” of financial data management and “weak” cybersecurity systems that hackers could access.

As a result, measures were taken to address both deficiencies. This has already improved security, details of which will be shared with the SEC.

Coder Online Search Support

Despite the breach, and the 2020 breach that led to the theft of user data, Codere Online continues to find support. Its stock price, though volatile at times, is rising.

As of the end of July last year, the price was around $2.10. In less than a month he jumped to $3.12, but it didn’t hold up. The price fell to $2.40 on August 30th, beginning a series of ups and downs that continued through December.

The CDRO was at $2.44 on December 19th and has been steadily rising since then. In morning trading on Jan. 20, it climbed to $3.50. It was valued at around $9.90 as it was preparing to list on the NASDAQ in November 2021.

The recent improvement comes from improved financial performance in 2022. Codere Online’s overall revenue for the third quarter was €28.9 million (US$31.33 million), a 51% increase over the previous year. Gaming revenue was €30.6 million (US$33.17 million), an increase of 54%.

This article was optimized by the SEO Team at Clickworks SEO

Leave a Reply

Your email address will not be published. Required fields are marked *