Unauthorized NETeller Withdrawals Add to Customer Woes
"It looks like someone went into my NETeller account and is transferring money. Someone transferred $10 to a casino. It worked. Then he tried to transfer $1000 to another casino and it was declined because I had less than $1000 left. Then he tried $500 and it worked because I had $522 left at that point.

"Then he tried $300, $200, $100, and it did not work. I went into my account to see what was going on. Then half an hour later I got another e-mail from Neteller telling me that I had transferred $20. The guy had tried $50, $40 and it got declined, until he tried $20. I know of one other person to which this happened today."

This was a posted message appearing on the MajorWager.com website and unfortunately it appears to be a problem that will continue for many sickened NETeller customers whose funds are supposedly being held in escrow accounts.

The breach in security is just another example of a company that has shown complete and utter disregard to the gambling public in North America but unfortunately this is a problem that could affect those living outside the US who continue to utilize NETeller. For this reason, Gambling911.com, MajorWager.com and other online gambling information news websites have urged its readers to avoid using the third payment processor.

NETeller's two co-founders were indicted and released on $5 mil bond, respectively, last month. Neither men were still involved in the company outside of holding shares at the time of their arrests. The company itself has not been indicted, though they claim to be aiding the US Department of Justice in its investigation, which is likely to lead to more arrests related to a highly involved bookmaking/agent/betting network.

One poster on the MajorWager.com website offered this opinion:

"This is so sad. This is just what the Department of Justice wants. Once they get the collapse going, they will have some shmucks believing that what they( DOJ) are doing is actually a good and righteous act. I'm not defending NETeller's current passe attitude to it's u.s customers but it is definitely a mortally wounded animal. What ticks me off is i absolutely loved this company. Every single transaction i used with them over the last 6 years ( and there were close to a 1000 of them) was done swiftly, and competently and the features of Instacash (essentially good faith short term credit) was incredibly helpful."

A solution to the NETeller breach in security was offered by one MajorWager participant. This is in fact valuable information that has proved to be effective.

1. Change your NT password.

2. Have NT change your secure ID. Keep track of who you use it with, if you can still use NT.

3. If you can't use your account, and have your checking account info on file, have NT remove it from your account.

4. If you have any issues, you can e-mail NT at VIP@neteller.com
The phone number you can call is 1-877-288-4545

5. I would change the password to your e-mail account as well.

"Whatever you do, don't yell at the NETeller representative that answers the phone," this individual advised. "Remember they are only an employee and they can't give you your money."

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Christopher Costigan, Gambling911.com

Originally published February 13, 2007 10:53 am ET