Incident: Betting Software Glitch at Ladbrokes Leads to Payment Issues

Published Date: 2020-02-15

Postmortem Analysis
Timeline 1. The software failure incident involving Ladbrokes and the betting discrepancies occurred in June 2018 [95702].
System 1. Ladbrokes online betting software [95702]
Responsible Organization 1. Ladbrokes [95702]
Impacted Organization 1. Ladbrokes customers, including Patricia O’Dowd [Article 95702] 2. Another customer who placed a bet on Dubai Horizon at Sandown [Article 95702]
Software Causes 1. Glitch in Ladbrokes' online betting software led to customers receiving unique receipt numbers for bets that were later described as cancelled [95702] 2. Insufficient funds issue in Ladbrokes' system causing discrepancies in accepting and processing bets [95702]
Non-software Causes 1. Insufficient funds in the customer's account to cover the bet placed [95702] 2. Lack of explanation on how the system allowed the punter to see a bet receipt despite insufficient funds in the account [95702]
Impacts 1. Customers were issued with unique receipt numbers for bets that were later described as cancelled, leading to confusion and disputes over winnings [95702]. 2. Customers experienced discrepancies in their account activity, with bets not appearing on provided spreadsheets initially but later being included with zero returns listed [95702]. 3. Ladbrokes claimed there were insufficient funds to cover certain bets, resulting in customers not receiving their winnings despite receiving bet receipts [95702]. 4. The software failure incident led to customers not being warned about low balances in their accounts when placing bets, causing further confusion and frustration [95702].
Preventions 1. Implement thorough testing procedures to ensure that all aspects of the online betting software, including bet acceptance, receipt generation, and fund availability checks, are functioning correctly before deploying any updates or changes [95702]. 2. Enhance monitoring systems to promptly detect discrepancies or anomalies in customer transactions, such as missing bets or incorrect returns, to address issues proactively [95702]. 3. Conduct regular audits of the software system to verify the accuracy and consistency of customer account activities and transactions, ensuring that all bets are properly recorded and settled [95702].
Fixes 1. Implement a thorough review and validation process for bet transactions to ensure that all accepted bets are accurately recorded and processed in the system [95702]. 2. Enhance the system to provide real-time notifications to customers if there are insufficient funds in their accounts to cover a bet, preventing them from placing bets that cannot be honored [95702]. 3. Conduct a comprehensive audit of the software to identify and rectify any underlying glitches or bugs that may be causing discrepancies in bet processing and payment calculations [95702].
References 1. Ladbrokes 2. Patricia O’Dowd 3. Paul Fairhead 4. Independent Betting Adjudication Service (Ibas)

Software Taxonomy of Faults

Category Option Rationale
Recurring one_organization (a) The software failure incident has happened again at one_organization: - Ladbrokes experienced a software failure incident where customers were issued with unique receipt numbers for bets that were later described as cancelled [95702]. - Despite Ladbrokes claiming to have addressed the glitch in its online betting software and made goodwill payments to affected customers, evidence emerged that similar issues persisted, such as customers not receiving their winnings despite receiving bet receipts [95702]. (b) The software failure incident has happened again at multiple_organization: - The article does not provide specific information about similar incidents happening at other organizations or with their products and services.
Phase (Design/Operation) design, operation (a) The software failure incident in the Ladbrokes case seems to be related to the design phase. The article mentions issues with receipt numbers being issued for bets that were later described as canceled, discrepancies in the spreadsheet of account activity, and inconsistencies in how the system handled bets and winnings. These issues point towards problems introduced during system development or updates that led to incorrect processing of bets and payments [95702]. (b) Additionally, there are indications of failures related to the operation of the system. Customers reported cases where they placed bets, received receipts indicating successful placement, but did not receive the corresponding winnings in their accounts. Ladbrokes responded to complaints by citing insufficient funds in the accounts to cover the bets, raising questions about how the system operated in terms of displaying bet receipts and handling account balances. This suggests that operational factors, such as how the system interacted with user accounts and displayed information, may have contributed to the failures experienced by customers [95702].
Boundary (Internal/External) within_system (a) within_system: The software failure incident reported in the articles seems to be primarily within the system. The incidents described involve issues such as discrepancies in bet receipts, missing winnings, and insufficient funds to cover bets, all of which point to internal system failures within Ladbrokes' online betting software [95702]. Customers received bet receipts for their wagers, but the system did not accurately reflect the bets placed or the outcomes, leading to disputes and unresolved winnings. Additionally, Ladbrokes' system allowed customers to place bets without sufficient funds in their accounts, indicating a flaw within the system's fund verification process. (b) outside_system: There is no clear indication in the articles of contributing factors originating from outside the system that led to the software failure incident. The focus of the reported incidents is on discrepancies, errors, and failures within Ladbrokes' online betting software itself, rather than external factors impacting the system [95702].
Nature (Human/Non-human) non-human_actions, human_actions (a) The software failure incident in the Ladbrokes case seems to be related to non-human actions. The incident involved discrepancies in the system where bets were placed, receipts were issued, but winnings were not paid out or were later described as canceled. For example, in one case, a customer placed a bet, received a receipt, but did not receive the winnings in their account, with Ladbrokes claiming insufficient funds without explaining how the system allowed the bet to be placed without warning about the low balance [95702]. (b) On the other hand, human actions also played a role in this software failure incident. Ladbrokes was involved in addressing the issue, providing goodwill payments to affected customers, and responding to complaints raised by customers regarding missing winnings or canceled bets. Additionally, Ladbrokes' interactions with customers, such as providing spreadsheets of account activity and responding to complaints, indicate human involvement in the resolution process [95702].
Dimension (Hardware/Software) software (a) The software failure incident related to hardware: - There is no specific mention of the software failure incident being directly attributed to hardware issues in the provided article [95702]. (b) The software failure incident related to software: - The software failure incident described in the article [95702] is primarily related to issues within Ladbrokes' online betting software. The incident involved discrepancies in bet receipts, bets being canceled without proper explanation, and failures in accurately processing bets and winnings. These issues point towards software-related failures within Ladbrokes' betting system.
Objective (Malicious/Non-malicious) non-malicious (a) The software failure incident described in the article does not seem to be malicious. It appears to be a non-malicious failure related to a glitch in Ladbrokes' online betting software that led to issues with accepting and processing bets, resulting in discrepancies in bet receipts and winnings for customers [95702]. The incident is characterized by errors and inconsistencies in the system rather than intentional harm caused by individuals.
Intent (Poor/Accidental Decisions) accidental_decisions (a) The software failure incident described in the article does not directly point to poor decisions as the intent behind the failure. Instead, it highlights issues related to discrepancies in bet receipts, missing winnings, and insufficient funds to cover bets, which could be attributed to system glitches or errors rather than deliberate poor decisions [95702]. (b) The incident seems to align more with accidental decisions or mistakes rather than intentional poor decisions. The article mentions cases where customers received bet receipts for successful bets but did not receive their winnings, indicating a potential accidental error in the system rather than a deliberate poor decision [95702].
Capability (Incompetence/Accidental) development_incompetence, accidental (a) The software failure incident related to development incompetence is evident in the case involving Ladbrokes where customers were issued with unique receipt numbers for bets that were later described as cancelled. Despite Ladbrokes claiming to have addressed the glitch in their online betting software and made goodwill payments to affected customers, evidence emerged that discrepancies still existed in the system. For example, in one case, a customer placed a bet on a horse race, received a receipt number for the bet, but did not receive the winnings as expected. Ladbrokes provided conflicting information and spreadsheet data, indicating inconsistencies in their system and processes [95702]. (b) The software failure incident related to accidental factors is highlighted in the case where a customer placed a bet on Dubai Horizon, received a receipt for the bet, but did not receive the winnings in their account. Ladbrokes responded to the customer's complaint by stating there were insufficient funds in the account to cover the bet. However, the customer questioned how the system allowed the bet to be placed and a receipt issued without warning about the low account balance. This situation suggests a potential accidental oversight or flaw in Ladbrokes' system that led to the customer's confusion and dissatisfaction [95702].
Duration unknown The articles do not provide specific information about whether the software failure incident was permanent or temporary.
Behaviour omission, value, other (a) crash: The incident described in the article does not directly indicate a crash of the software system where it loses state and stops performing its intended functions. (b) omission: The software system in the incident omitted to perform its intended functions at instances where bets were placed successfully, but winnings were not credited to the customers' accounts [95702]. (c) timing: There is no direct indication in the article that the software system performed its intended functions too late or too early. (d) value: The failure of the software system in this incident is related to performing its intended functions incorrectly, such as not crediting winnings to customers' accounts despite successful bet placements [95702]. (e) byzantine: The software system in this incident did not exhibit behavior of being byzantine, which involves inconsistent responses and interactions. (f) other: The behavior of the software failure incident in this case involves issuing bet receipts for successful bets but not crediting the winnings to customers' accounts, leading to disputes and claims against the bookie [95702].

IoT System Layer

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

Other Details

Category Option Rationale
Consequence property, theoretical_consequence, other (a) death: There is no mention of any deaths resulting from the software failure incident in the provided article [95702]. (b) harm: The article does not mention any physical harm caused to individuals due to the software failure incident [95702]. (c) basic: The incident did not impact people's access to food or shelter [95702]. (d) property: People's material goods, money, or data were impacted by the software failure incident. Customers were affected by bets being cancelled or not resulting in expected winnings [95702]. (e) delay: There is no mention of any activities being postponed due to the software failure incident in the article [95702]. (f) non-human: The software failure incident impacted customers and their bets, but there is no mention of non-human entities being directly affected [95702]. (g) no_consequence: The article reports real consequences of customers being affected by the software failure incident, so the option of 'no_consequence' does not apply [95702]. (h) theoretical_consequence: The article discusses potential consequences of customers being affected by the software failure incident, such as Ladbrokes claiming to have addressed the glitch and made goodwill settlements, but evidence emerging that some customers may still have claims against the bookie [95702]. (i) other: The software failure incident led to customers experiencing issues with their bets, discrepancies in receipts, and missing winnings, which impacted their trust and financial transactions with the betting company [95702].
Domain finance, entertainment (a) The software failure incident reported in the news article is related to the finance industry. Ladbrokes, a bookmaker, experienced issues with its online betting software, leading to discrepancies in bet receipts and payments to customers [Article 95702].

Sources

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