Betfair criticised over data theft

ONLINE GAMBLING EXCHANGE Betfair has revealed that it was the victim of theft shortly before it was floated.

The revelation has raised questions about whether the UK needs a security disclosure law, and if so, whether the firm would have gained £1.39bn from its float.

According to the Telegraph newspaper, criminals stole payment card details belonging to over 2 million customers. Although it informed the UK Serious Organised Crime Agency, the Australian Federal Police and German law enforcement authorities, international regulators and Royal Bank of Scotland, Betfair did not inform its customers.

Nor, says the newspaper, did it provide details of the crime in the prospectus it provided ahead of its £13-a share float listing. That raised questions at the Telegraph, and amongst common sense thinkers, about how good the disclosure rules actually are.

Betfair, says the paper, mentioned only "a limited number of security breaches in the past", adding that these had "not had a significant effect on Betfair's reputation, operations, financial performance and prospects".

This is no small leak though, and the breach that occurred in Spring of last year took with it payment details as well as account usernames and encrypted security questions. Betfair acknowledged the breach in a document titled "Project Brazil Progress Report", and according to the Telegraph this report was created six days after the firm announced its intention to float.

In a statement Betfair said that it has resolved the issue, adding that the breach posed no risk to its customers. µ