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Virgin Media staff caught in The X Factor betting scam |
07/04/2011 |
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Mark Sweney |
Gambling
Commission inquiry finds employees used inside information on phone votes to
place bets on eliminations
Three Virgin Media employees have been caught using inside
information on telephone voting patterns during last year's series of The X
Factor to place more than £16,000 in bets on the hit ITV1 show.
An investigation by the Gambling
Commission found that three Virgin Media employees accessed company data on the
number of telephone votes being registered by customers for each contestant on
the show.
The investigation found
"no evidence that the integrity of the public voting or the TV shows involved
were compromised".
Using the information gleaned on voting patterns the
employees waged more than £16,000 in bets through online gambling
platform Betfair on which contestants would be eliminated from The X Factor.
Betfair alerted the Gambling Commission to suspicious activity and
following an investigation the bets have been voided.
"Following a
multiagency investigation led by the Gambling Commission, we are satisfied that
the bets placed were substantially unfair as the individuals involved had
inside information," said the Gambling Commission's director of regulation,
Nick Tofiluk.
The Gambling Commission has been in consultation with
Virgin Media and media regulator Ofcom to make sure such scams cannot take
place in the future.
"While we take this matter extremely seriously
Ofcom and the broadcaster are confident that TV viewers did not suffer any
financial harm, nor were the outcome of any shows or votes affected," said an
Ofcom spokesman. "We also note that Virgin Media has since terminated the
employment of the individuals involved and introduced additional internal
procedures to improve data monitoring."
Virgin Media said that the scam
was an "isolated incident" and offered reassurance that the outcome of phone
votes through the company's system had not been affected.
"We can
confirm this was an isolated incident where three individuals were found to
have misused their legitimate access to internal data to identify the volume of
calls being made," said a spokeswoman for Virgin Media. "At no point was any
individual customer data shared and the outcome of the phone votes was not
affected. However we have since introduced additional monitoring to our systems
to ensure this cannot happen again."
Betfair said that scams and
suspicious betting is "rare" on its service. "It is essential for us that our
customers have confidence in the honesty of the markets on which they place
bets as otherwise they will not continue to use the product," the company
added.
The company has been providing a market on The X Factor since
2004 with a £10m to £15m sum traded across the most recent series.
Betfair said the amount waged is about the same as is spent on the FA
Cup final and "just shy" of what is fluttered on the Grand National.
According to statistics gleaned by Betfair the average age of an X
Factor bettor is 39 and Simon Cowell's show is the most popular reality show
with gamblers, ahead of rivals such as Strictly Come Dancing, Big Brother, I'm
A Celebrity and Dancing On Ice. |
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