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California scratch cards ‘catastrophically fail’ safety tests, audit finds

A new audit by the State Controller's Office shows that the California Lottery failed to recall compromised scratch-off tickets and failed to comply with required security testing.

The audit found that six scratch cards “catastrophically failed” routine internal security tests in 2017. These errors suggested that the tickets may display numbers or images before being scratched off.

The results of the audit were first reported in The Sacramento Bee newspaper.

How the scratch cards were compromised remains unclear, as the lottery did not disclose details so as not to encourage potential fraudsters.

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In response to the audit, the lottery disputed the claim that the compromised tickets should have been recalled and denied deficiencies in ticket security controls.

However, the lottery acknowledged that its documentation processes could be improved.

“All of the recommendations in this report have been fully implemented since the audit,” Carolyn Becker, the lottery's deputy director of public affairs and communications, told The Sacramento Bee. “Players trust our games to be fair, and we work hard to keep it that way. The integrity of our games is of the utmost importance to us.”

Becker also noted that the California Lottery's new leadership has made great strides in improving documentation and security procedures since the audit period that ended six years ago.

The Control Bureau plans to conduct a follow-up investigation into the lottery's corrective actions, but has not yet set a timetable.

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