Incident: Software Glitch at Ladbrokes: Bet Acceptance Issue and Settlement Controversy

Published Date: 2019-01-10

Postmortem Analysis
Timeline 1. The software failure incident at Ladbrokes occurred in October 2017 [88162, 79874].
System 1. Ladbrokes' software systems [Article 88162, Article 79874]
Responsible Organization 1. Ladbrokes [88162, 79874]
Impacted Organization 1. Ladbrokes customers [Article 88162, Article 79874]
Software Causes 1. The failure incident at Ladbrokes was caused by a long-standing software glitch in the company's systems that led to customers seeing unique "receipt" numbers on bets that had actually been refused by the trading department [88162, 79874]. 2. Ladbrokes' software systems had a technical issue that resulted in bets being listed as "cancelled" instead of being clearly marked as declined or refused, causing confusion among customers [88162, 79874]. 3. The software glitch caused customers to believe that their bets had been accepted when they had not, leading to disputes and potential legal actions [88162, 79874].
Non-software Causes 1. Concerns about the possible effect on profitability led to the problem not being addressed immediately [88162]. 2. Ladbrokes had concerns about upping the limits on bets to avoid the issue, as it would impact profitability [88162]. 3. Poor customer service due to customers believing their bets were accepted when they were actually rejected [88162]. 4. Delay in addressing the issue due to technical challenges with code uploads causing the problem to persist [88162]. 5. Some customers threatened to sue for payment on bets they believed had been accepted, leading to out-of-court settlements [88162]. 6. Ladbrokes faced challenges in handling the large volume of customer inquiries about unpaid bets [88162]. 7. The issue affected a significant number of customers, leading to multiple cases being lodged with IBAS [88162]. 8. A fresh claim for a £21,500 payout was considered by the Independent Betting Adjudication Service, indicating ongoing disputes with customers [79874]. 9. Dozens of customers affected by the glitch had not been paid or contacted by Ladbrokes as claimed, leading to potential legal action [79874].
Impacts 1. Customers saw unique "receipt" numbers on bets that had been refused, leading to confusion and potential financial losses [88162]. 2. Customers believed their bets had been accepted when they had not, causing disputes and the need for settlements [88162, 79874]. 3. Ladbrokes had to make "goodwill" settlements to customers who would have won their bets, impacting the company financially [79874]. 4. The reputation of Ladbrokes was negatively affected due to poor customer service and unresolved cases [88162, 79874].
Preventions 1. Timely and thorough testing of the software updates before deployment could have helped identify and rectify the issue before it affected customers [88162]. 2. Implementing a more robust monitoring system to detect anomalies in customer transactions, such as the appearance of unique receipt numbers on refused bets, could have raised flags earlier for investigation and resolution [88162]. 3. Prioritizing customer service and transparency by promptly addressing reported issues and communicating effectively with affected customers could have mitigated the impact of the software glitch and prevented potential legal disputes [79874].
Fixes 1. Immediate and thorough investigation and resolution of the technical glitch causing the issue with the software systems at Ladbrokes [Article 88162]. 2. Proactive communication and transparency with customers affected by the glitch to address their concerns and make necessary payments promptly [Article 88162, Article 79874]. 3. Implementing robust testing procedures to ensure that code changes do not introduce new issues or break existing functionalities [Article 88162]. 4. Enhancing customer service to prevent such incidents from impacting customer experience and trust in the company [Article 88162]. 5. Ensuring that all affected customers are contacted and compensated for any losses incurred due to the software glitch [Article 79874].
References 1. Former employee of Ladbrokes [Article 88162] 2. The Guardian [Article 88162, Article 79874] 3. IBAS (Independent Betting Adjudication Service) [Article 88162, Article 79874] 4. Paul Fairhead [Article 79874]

Software Taxonomy of Faults

Category Option Rationale
Recurring one_organization (a) The software failure incident happened again at one_organization: The incident at Ladbrokes involving a software glitch that caused confusion among customers by displaying unique receipt numbers on bets that had actually been refused by the trading department occurred multiple times. The company was aware of the issue for several months but did not address it immediately due to concerns about profitability [88162]. Ladbrokes had previously admitted to a "technical glitch" that led customers to believe their bets had been accepted when they had not, resulting in the need to contact affected customers and make settlements [79874]. (b) The software failure incident happened again at multiple_organization: There is no information in the provided articles about the software failure incident happening at other organizations or with their products and services.
Phase (Design/Operation) design, operation (a) The software failure incident at Ladbrokes was primarily due to issues related to system development and updates. The incident involved a long-standing software glitch that caused customers to see unique receipt numbers on bets that had actually been refused by the trading department. Ladbrokes had been aware of this problem for several months, with a former employee mentioning that the issue was intermittent, indicating that it was related to system changes and updates. The company conducted a thorough technical investigation and identified a "technical glitch" that affected a small number of customers, leading to bets being mistakenly perceived as accepted when they were not. This suggests that the failure was rooted in the software development and maintenance processes [88162, 79874]. (b) The software failure incident at Ladbrokes also had elements related to the operation of the system. Customers were impacted by the glitch during the betting process, where their bets were being declined by traders but were displayed as accepted on their accounts. This operational issue led to confusion and dissatisfaction among customers who believed their bets had been accepted when they had not. The failure to properly handle and communicate the status of the bets to customers highlights an operational aspect of the incident, affecting the user experience and customer service provided by Ladbrokes [88162, 79874].
Boundary (Internal/External) within_system (a) within_system: The software failure incident at Ladbrokes was primarily due to factors originating from within the system. The issue with the software systems causing customers to see unique "receipt" numbers on bets that had been refused was identified as a "technical glitch" by Ladbrokes [88162]. Ladbrokes admitted that this glitch led customers to believe their bets had been accepted when they had not, resulting in bets being listed as "cancelled" instead of declined or refused. The company had been aware of this problem for several months but did not address it immediately due to concerns about profitability [88162]. Despite Ladbrokes claiming to have contacted and paid out affected customers, doubts arose when a fresh claim for a £21,500 payout was considered by the Independent Betting Adjudication Service, indicating that the issue was ongoing [79874]. Customers affected by the glitch were still awaiting payments or contact from Ladbrokes, with tens of thousands of pounds at stake [79874].
Nature (Human/Non-human) non-human_actions, human_actions (a) The software failure incident at Ladbrokes was primarily due to non-human actions, specifically a "technical glitch" in the software system. Ladbrokes identified this glitch after a thorough technical investigation and acknowledged that it caused issues for a small number of customers [88162]. The glitch led to customers seeing unique "receipt" numbers on bets that had actually been refused by the trading department, resulting in confusion and incorrect perceptions of bet acceptance [88162]. The firm had to make goodwill settlements to affected customers who believed their bets had been accepted when they had not [79874]. (b) Human actions also played a role in the software failure incident at Ladbrokes. The former employee mentioned in the articles highlighted that Ladbrokes was aware of the software problem for several months but did not address it immediately due to concerns about profitability [88162]. The company faced challenges in managing customer expectations and dealing with the aftermath of the glitch, indicating a delay in taking necessary actions to rectify the issue [88162]. Additionally, there were claims that some customers affected by the glitch had not been contacted or paid out as promised by Ladbrokes, suggesting potential shortcomings in the company's response to the incident [79874].
Dimension (Hardware/Software) software (a) The software failure incident at Ladbrokes was primarily due to contributing factors that originated in software. The incident involved a technical glitch in Ladbrokes' software systems that caused customers to see unique "receipt" numbers on bets that had actually been refused by the firm's trading department. This glitch led customers to believe that their bets had been accepted when they had not, resulting in confusion and disputes [88162, 79874]. (b) The software failure incident was not attributed to hardware issues but rather to software-related problems, specifically a technical glitch in Ladbrokes' systems that caused the betting discrepancies experienced by customers [88162, 79874].
Objective (Malicious/Non-malicious) non-malicious (a) The software failure incident at Ladbrokes was non-malicious. The issue with the software systems causing customers to see unique "receipt" numbers on bets that had been refused was attributed to a "technical glitch" [88162]. Ladbrokes acknowledged the problem and made goodwill settlements to customers affected by the glitch, indicating that the failure was not due to malicious intent but rather a technical issue [79874].
Intent (Poor/Accidental Decisions) poor_decisions, accidental_decisions (a) The software failure incident at Ladbrokes was related to poor decisions. The company was aware of the issue with its software systems for several months but did not address it immediately due to concerns about the possible effect on profitability. There were meetings discussing what actions could be taken, such as upping the limits to accept more bets without referral, but these decisions would have had an impact on profitability. The former employee mentioned that customers were experiencing issues with their bets being rejected but still seeing them as accepted, leading to confusion and poor customer service [88162]. (b) The software failure incident at Ladbrokes also involved accidental decisions or unintended consequences. Customers were seeing receipt numbers and their account balances being debited as if the bets had been accepted, even though the traders had actually declined the bets. This led to customers believing their bets were accepted when they were not, causing confusion and disputes. Ladbrokes later admitted that a "technical glitch" had caused some punters to believe their bets had been accepted when they had not been placed [88162, 79874].
Capability (Incompetence/Accidental) development_incompetence, accidental (a) The software failure incident at Ladbrokes was primarily attributed to development incompetence. The incident involved a long-standing issue with the software systems that caused customers to see unique "receipt" numbers on bets that had actually been refused by the trading department. Ladbrokes was aware of this problem for several months but did not address it immediately due to concerns about profitability [88162]. The former employee mentioned that there were technical glitches that kept reoccurring despite attempts to fix them, leading to customer confusion and dissatisfaction. The company's failure to effectively address and resolve the issue in a timely manner reflects a lack of professional competence in managing and maintaining their software systems. (b) Additionally, the software failure incident at Ladbrokes could also be considered accidental. The incident was described as a "technical glitch" that caused some punters to believe their bets had been accepted when they had not been placed. Ladbrokes admitted that this glitch led to customers thinking their bets were accepted when they were actually rejected [79874]. This unintentional error in the software system resulted in customers being misled about the status of their bets, leading to disputes and the need for settlements.
Duration permanent, temporary The software failure incident reported in the articles appears to have elements of both a temporary and a permanent nature: 1. Temporary Aspect: The incident seems to have a temporary aspect as Ladbrokes was aware of the issue with its software systems for several months but did not address it immediately due to concerns about profitability [Article 88162]. The problem was described as being on and off, with attempts to fix the code causing the issue to reoccur. There was a period leading up to a major race meeting where they couldn't change anything, indicating a temporary nature of the problem. 2. Permanent Aspect: On the other hand, the incident also has a permanent aspect as the software glitch persisted over a long period, affecting customers who believed their bets had been accepted when they had not [Article 88162]. Despite attempts to fix the issue, it kept resurfacing, indicating a more systemic problem within the software system. Therefore, the software failure incident at Ladbrokes appears to have both temporary and permanent aspects, with the issue recurring despite attempts to address it.
Behaviour omission, value, other (a) crash: The software failure incident reported in the articles does not involve a crash where the system loses state and stops performing its intended functions. (b) omission: The software failure incident involves the system omitting to perform its intended functions at instances. Customers were seeing receipt numbers and their account balances being debited as if the bet had been accepted, even though the traders had declined the bet. The bets were then listed as "cancelled" rather than refused or declined, leading to confusion and disputes [88162, 79874]. (c) timing: The software failure incident does not involve the system performing its intended functions too late or too early. (d) value: The software failure incident involves the system performing its intended functions incorrectly. Customers believed their bets had been accepted when they were actually declined, leading to disputes and the need for settlements [88162, 79874]. (e) byzantine: The software failure incident does not exhibit a byzantine behavior with inconsistent responses and interactions. (f) other: The software failure incident involves a situation where the system's behavior led customers to believe their bets had been accepted when they were actually declined, causing confusion and disputes. The system's incorrect behavior resulted in the need for settlements and potential legal actions [88162, 79874].

IoT System Layer

Layer Option Rationale
Perception None None
Communication None None
Application None None

Other Details

Category Option Rationale
Consequence property, theoretical_consequence (a) death: People lost their lives due to the software failure (b) harm: People were physically harmed due to the software failure (c) basic: People's access to food or shelter was impacted because of the software failure (d) property: People's material goods, money, or data was impacted due to the software failure (e) delay: People had to postpone an activity due to the software failure (f) non-human: Non-human entities were impacted due to the software failure (g) no_consequence: There were no real observed consequences of the software failure (h) theoretical_consequence: There were potential consequences discussed of the software failure that did not occur (i) other: Was there consequence(s) of the software failure not described in the (a to h) options? What is the other consequence(s)? The software failure incident at Ladbrokes did not result in any direct physical harm, loss of life, or impact on basic needs like food or shelter. The consequences were primarily related to financial losses and customer dissatisfaction due to incorrect bet processing. Customers believed their bets had been accepted when they were actually declined, leading to disputes and the need for settlements [88162, 79874]. The potential theoretical consequence discussed was the impact on profitability due to concerns about addressing the software issue promptly [88162].
Domain finance, entertainment (a) The software failure incident reported in the articles is related to the finance industry. Ladbrokes, a betting company, experienced a software glitch that caused issues with their bet-handling procedures, leading to customers seeing unique receipt numbers on bets that had been refused by the trading department [88162, 79874]. Customers were debited as if the bet had been accepted, even though it was declined, and the bets were listed as "cancelled" instead of declined or refused. This incident affected punters who believed their bets had been accepted when they had not, resulting in disputes and settlements [88162, 79874]. The Independent Betting Adjudication Service (IBAS) was involved in resolving cases related to the software glitch [88162, 79874].

Sources

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