1. A Secure Online Second Chance Drawing System Presented by: Patrick Maroney, Director of Security & Investigations, Colorado Lottery Ken Sabey, Director of Sales, HostWorks, Inc. Dan Baughman, Developer, HostWorks, Inc. 2009 Fall NASPL Security Subcommittee Meeting Colorado Springs, Colorado

2. Reason for Security Integrity of any drawing Integrity of any drawing No longer just a promotional tool No longer just a promotional tool Now in the prize structure…. Now in the prize structure…. Is additional security needed?? Is additional security needed??

3. Overview Overview Data Center Security Server Security Receiving HASH Data Testing Entry Process Drawing Process

4. Secure Environment Data center security Manned 24/7 Manned 24/7 SAS70 Controlled Security Procedures SAS70 Controlled Security Procedures Locked cabinets Locked cabinets Security cameras Security cameras Colorado Department of Revenue personnel background checks Colorado Department of Revenue personnel background checks Yearly security audits Yearly security audits

5. Secure Environment (cont.) Server security Follow the manufacturer’s security standards for the operating system and development platform Follow the manufacturer’s security standards for the operating system and development platform Dedicated firewall Dedicated firewall Server and database access via VPN tunnels only Server and database access via VPN tunnels only Access controlled at user level Access controlled at user level Secure Socket Layers (SSL) used to encrypt data Secure Socket Layers (SSL) used to encrypt data Robust suite of anti-virus tools Robust suite of anti-virus tools Pro-active monitoring of the servers Pro-active monitoring of the servers

6. Drawing Setup Receiving the HASH data Data is transmitted via an encrypted SFTP protocol (must have key to connect) Data is transmitted via an encrypted SFTP protocol (must have key to connect) Access limited to authorized personnel Access limited to authorized personnel Encrypted files uploaded to web server, then unencrypted with the key Encrypted files uploaded to web server, then unencrypted with the key HASH data uploaded into database for specific game over encrypted connection HASH data uploaded into database for specific game over encrypted connection HASH = plug a string into it, outputs a 32 HASH = plug a string into it, outputs a 32 character string back character string back

7. Drawing Setup (cont.) Testing Developer does initial test with non-active VIRN numbers to verify it works Developer does initial test with non-active VIRN numbers to verify it works Lottery personnel conduct second level of testing prior to sign-off on the game Lottery personnel conduct second level of testing prior to sign-off on the game Test entries are tracked and stored separately from actual entries Test entries are tracked and stored separately from actual entries

8. Entry Process Entering the Ticket Number Player enters 2CD section of Lottery’s web site Player enters 2CD section of Lottery’s web site2CD section 2CD section Enters VIRN number from non-winning scratch ticket Enters VIRN number from non-winning scratch ticket System does one-way encryption to HASH algorithm to determine validity System does one-way encryption to HASH algorithm to determine validity If non-valid, user is presented with immediate feedback on reason If non-valid, user is presented with immediate feedback on reason If valid, entry is stored in entry table If valid, entry is stored in entry table Numerous failed attempts result in entry form access being temporarily disabled for player Numerous failed attempts result in entry form access being temporarily disabled for player

9. Entry Process (cont.) Entry Submission Upon successful submission, player is provided option to enter another ticket number Upon successful submission, player is provided option to enter another ticket number MyLottery player has option to review their 2CD history when logged in or to opt-in to a weekly email summary MyLottery player has option to review their 2CD history when logged in or to opt-in to a weekly email summary All drawing entrants will receive an email notification revealing the winner of the drawing. All drawing entrants will receive an email notification revealing the winner of the drawing.

10. Drawing Process Acquiring Entrants Authorized Lottery personnel login into Admin section of web site Authorized Lottery personnel login into Admin section of web siteAdmin section Admin section Second level of dual logins required to access Drawing system Second level of dual logins required to access Drawing system Drawing team chooses a 2CD game from list of available games, system provides output of total number of entrants Drawing team chooses a 2CD game from list of available games, system provides output of total number of entrants Automated security audit performed on data to scrub for possible duplicate entries Automated security audit performed on data to scrub for possible duplicate entries Lottery security performs data integrity check Lottery security performs data integrity check

11. Drawing Process (cont.) Winner Selection Drawing team runs the drawing on a separate stand alone automatic draw machine Drawing team runs the drawing on a separate stand alone automatic draw machine Drawing team logs back into drawing system and inputs the winning entrant’s number; system outputs that entrant’s contact information Drawing team logs back into drawing system and inputs the winning entrant’s number; system outputs that entrant’s contact information Drawing team now downloads copy of the entrants database Drawing team now downloads copy of the entrants database Winner is contacted by Lottery personnel Winner is contacted by Lottery personnel Winner has to physically present the scratch game ticket Winner has to physically present the scratch game ticket

12. Summary Multiple solutions: secure your current environment, outsource the 2CD system to a secure third party, hybrid. Multiple solutions: secure your current environment, outsource the 2CD system to a secure third party, hybrid. Test, Test, Test Test, Test, Test Continually audit and evaluate options Continually audit and evaluate options Listen to your players Listen to your players