The line between financial crime and espionage has become thinner, as investigations reveal an illicit gambling network that might hide a deeper and more dangerous function. For female founders and entrepreneurs, particularly in Europe, there are lessons to be learned from how these networks operate and why we need to stay vigilant. Here’s the story broken down and what we, as business owners, can take away from it.
A Fraud Network or a Cyber Espionage Playground?
For over 14 years, a large global gambling network appeared to be about one thing: scamming users. But recent findings, led by security firm Malanta, show it could also be a cover for nation-state-sponsored espionage. Think phishing attacks to steal credentials, hijacked websites belonging to legitimate businesses, and even malware spreading through Android apps targeted at unsuspecting users. Over 328,000 domains and over 51,000 stolen credentials are just the tip of the iceberg.
Some of the attacked sectors? Manufacturing, transport, healthcare, and education, all industries ripe with sensitive data and big enough to create a cascading impact if disrupted. For instance, stealing login credentials from one supply-chain link could cause a domino effect, making it easier to infiltrate others.
Insights Female Entrepreneurs Can Take From This
Building a startup is no small feat, especially if you’re bootstrapping and wearing multiple hats, like I am with my projects. But making your digital footprint secure might just save your business. If a hijacked subdomain can be used to redirect malware, imagine what a compromised API, client database, or HR tool could mean.
Below are the lessons any entrepreneur, founder, or small business owner can implement:
1. Take Ownership of Your Digital Infrastructure
- Hijacked legitimate subdomains were used as proxies for this gambling front. Often, businesses forget to maintain expired domains or update DNS settings, leaving them vulnerable.
- Regular audits of your website and its dependencies are non-negotiable.
- Tools like Sucuri's Website Security can help you monitor and respond quickly to breaches.
2. Avoid Ignoring Compliance Risks
- This fraudulent gambling network thrived in regions where gambling laws are strict. Similar blind spots in your business, like GDPR compliance, can attract opportunists.
- Seek advice from legal and digital experts who specialize in startups to patch areas where you could unintentionally bend rules.
3. Invest in Simple Security Measures Early
- Use multi-factor authentication for accounts, especially linked to finances or sensitive data.
- Regularly update every plugin, app, or system you use. Outdated tech only makes you an easier target.
- For example, a WordPress site left unpatched opens the door to malware, a common exploit used by this espionage network.
4. Stay Wary of Third-Party Integrations
- Third-party integrations are excellent for scalability when you’re small. But they’re also often exploited. Anytime you choose a tool, ask critical questions about how it stores data. Is it encrypting? Is it securely transferring information between endpoints?
- Services like Astra’s Security Audit can help check these specifications.
How Does This Relate to Day-To-Day Operations?
This may all sound daunting, but any founder who’s been through accelerators, incubators, or grant programs like I have knows that the devil is in small details. Whether it’s understanding blockchain security for CADChain or considering how AI impacts intellectual property, I’ve learned adaptability comes from questioning every potential weak link.
Let’s say you’re just starting a marketplace platform for creators. As you grow, investors and customers alike will expect proof that they can trust your site to handle transactions securely. If an oversight leads to leaked data, recovery isn’t just expensive, it damages your reputation irreparably.
Here’s a brief guide for safeguarding growing businesses:
- Map Your Assets: Know what data or infrastructure is most crucial.
- Get Professional Scans: Use penetration testing services to simulate attacks.
- Handle Credentials Wisely: Avoid saving passwords in spreadsheets; instead, opt for tools like 1Password or LastPass.
- Train Your Team: Even small teams need to understand phishing risks. Many free webinars can help.
Most Common Mistakes to Avoid
When securing your digital space, here are common entrepreneur missteps:
- Underestimating Smaller Risks: Thinking, “Why would someone attack my little brand?” Cybercriminals often target less-secure startups because they provide easy wins.
- Pushing Off Security for Later: Cyber incidents aren’t just enterprise-level problems. Working on the bare minimum early could prevent most attacks.
- Not Documenting Protocols: A breach could occur when team members, using personal devices, log into unsecured networks. Without guidance, they might not even realize the risk.
Why Lessons From Fraudulent Networks Matter for Startups
It’s tempting to think that a multinational-level fraud ring has nothing in common with our startups. But with cloud platforms becoming central to bootstrapped businesses, entrepreneurs often rely on structures just as accessible globally as they are locally. The flawed mobile apps, hijacked services, or poorly monitored domains you might shrug off as small issues? Those are exactly the tools that malicious networks exploit.
Additionally, entrepreneurs building for impact, such as women in STEM or those tackling sustainability, must protect their work doubly. If hacked systems are manipulated to spread misinformation or leak sensitive operational details, it undermines not just a business, but its greater goals.
Wrapping It All Into Perspective
Entrepreneurship involves balancing creativity with calculated preparation. While this story outlines a giant international gamble-gone-wrong operation, we only have so much control over global systems. What we can control, keeping our tech secure, auditing access, and not leaving backdoors for bad actors, can make the ultimate difference.
Firm foundations create trust, whether it’s with teammates joining your mission or customers entrusting their funds to your platform. I’ve been in situations where, regardless of what business vertical I was handling, technique and clarity came from anticipating risks. Let’s learn from the flaws of giant fraud rings so smaller, positive-impact ventures can avoid their traps.
For those curious about deeper analysis on cybersecurity from reputable sources, Ars Technica provides excellent breakdowns in clear language. Stay vigilant, stay secure.
FAQ
1. What was discovered about the gambling network that operated for over 14 years?
Recent investigations revealed that a global gambling network, initially thought to generate revenue via scams, may serve a larger purpose, namely, aiding nation-state-sponsored espionage. The network targets sectors such as manufacturing, healthcare, and education. Learn more about the gambling network on Ars Technica
2. How did this illicit network operate on such a large scale?
The network hijacked over 90,000 legitimate domains and compromised 328,000 subdomains globally. It uses sophisticated techniques such as SEO manipulation and malware hosted on cloud platforms like AWS and Azure. Read about Malanta's findings
3. Could this network be tied to nation-state activities?
Yes, evidence suggests that the network facilitates not just fraud but also covert cyber operations that resemble nation-state espionage. High-value targets and the scale of resources point toward potential state-backed involvement.
4. How are legitimate businesses and individuals impacted by this?
Legitimate businesses, such as those with abandoned domains or unmonitored subdomains, are exploited as proxies for malicious activities, including malware distribution and phishing attacks. Find more details on threat mitigation from Sucuri
5. What industries were most targeted by this espionage network?
The primary targets include manufacturing, healthcare, transport, education, and governmental sectors, all of which harbor high-value and sensitive data.
6. What measures can female founders and entrepreneurs take to protect their businesses?
Startup owners can secure their businesses by:
- Conducting regular website audits
- Using multi-factor authentication
- Investing in penetration testing and security assessments
Learn more about tools like Astra’s Security Audit
7. How does this fraud network use digital infrastructure?
Hackers exploit poorly secured infrastructures, like unpatched WordPress sites and outdated mobile apps, to install malware and steal credentials.
8. Why are government and corporate domains frequently hijacked?
These domains are ideal for their credibility, making them effective for spreading misinformation and enabling covert command-and-control operations disguised as legitimate traffic.
9. What lessons can startups extract from this case to manage cybersecurity better?
Startups should focus on monitoring endpoints, encrypting all sensitive data, and ensuring compliance with security regulations like GDPR. Early investments in cybersecurity can prevent major reputational and financial damages.
10. How can businesses tackle vulnerabilities in third-party integrations?
Business owners should confirm all third-party platforms provide secure encryption, data transfer, and endpoint protection, an essential step to avoid exploitation via partnerships.
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.
