Prior to joining IA, I was running security at a small poker room. When we heard about the scandal at absolut poker, we were all taken aback that a poker software could make the hole card info of players available in real-time to administrators.
Although i agree that cheating is rampant in online poker, my experience has been that it is usually player vs. player cheating (collusion), this is the only recent case i know of where the site administrators were involved in perpetuating the crime.
I think we need to promote more heavily the auditing that legitimate casinos have performed on their software.
Here is the blog we looked at when analyzing the situation.
http://www.absolutepokercheats.com-a.googlepages.com/graphs&charts
I find it’s so great that the players themselves banded together to expose the scam.