Online Gambling Fraud

Online gambling has gained immense popularity, but along with its growth, the risk of fraud has also increased. This comprehensive guide delves into the world of online gambling fraud, exploring its various forms, mechanisms, and effective strategies to prevent and combat it. Aimed at Ugrado's prospective readers, this guide sheds light on the complexities of the issue.

What is Online Gambling Fraud

Online gambling fraud is a cybercrime that attempts to exploit or defraud gambling operators. This can take many forms, from multiple accounts to bonus abuse, affiliate fraud, money laundering, and grey areas such as arbitrage.

When Fraud Analysts talk about gambling fraud, we mean that professional or amateur scammers do so to extort funds, bonuses or other benefits from online gambling establishments and/or facilitate the fraud of others. Refers to illegal or harmful actions or plans.

Of course, online gambling is a big draw for scammers because of its accessibility and links with traditional money launderers in the offline industry. It has also attracted the attention of regulators and legislators, including poker rooms, online casinos, slot sites, bingo rooms and bookmakers.

Navigating the Shadows: Exploring the Most Common Types of Online Gambling Scams

Scammers are constantly finding new and creative ways to exploit the system, but there are also many common attacks to watch out for.

• Multiple Accounts: This is the basis of many gambling attacks. Scammers use fake credentials to create dozens, or even hundreds, of accounts to gain their advantage online. These are used to enable schemes such as:
• Bonus Abuse: A large number of fake accounts benefit from sign-up her bonuses, coupons and other attractive offers. While these promotions are a great way to attract new players, over-distribution can quickly bog down the platform.
• Gnoming: Use multiple accounts to help one player win. Other accounts are used to deliberately lose in head-to-head games, allowing you to pocket the winnings and bonuses that go along with it. This is common in poker, for example.
• Chip Dumping: Another Poker Table Cheating. Similar to norming, the idea is to trick the system and bring multiple accounts into the same table in order to sway the outcome in favor or against a particular player.

Then there are payment attacks. Since online casinos and gambling platforms require deposits and withdrawals before you can play and are essentially digital wallets, payment processing can also result in losses.

• Credit Card: Scammers can use stolen card information to fund their accounts. This means that illegal funds can be used to make real profits.
• Chargebacks: After someone has already used a stolen credit card on your platform, the legitimate cardholder may realize what happened and file a chargeback with their bank or credit card provider. there is. Unfortunately, this means that refunds are at the gambling operator's expense, as well as processing fees, making things even worse...
• Phone Charge Abuse: Online Casinos Offer Phone Charges In that case, the scammer may trick the victim into defrauding them. Fund their accounts. It uses standard social engineering and phishing techniques to target unsuspecting users and demand payment over the phone. Payments are sent directly to the cheater's game account.

Finally, as with land-based casinos, owners must be careful not to become a preferred port of call for money launderers. Anywhere that processes large amounts of money can be used to legalize illegally obtained cash, making gambling establishments a prime target for criminals.

How to Stop Online Gambling Fraud

In the dynamic world of online gambling, where excitement meets the digital realm, the threat of fraud looms large. Online gambling fraud not only tarnishes the experience for players but also poses a significant challenge to platforms' integrity.

Safeguarding Strategies to Stop Online Gambling Fraud

In order to be compliant and fight fraud, implement these steps, from the point of onboarding onward:

ID verification with government-issued documents(depending on local legislation) age verification PEP (Politically Exposed Persons) checks and other AML-mandated checks, including all relevant sanctions lists, watch lists, and crime lists

During signup, you can assess users` intentions and fraud scores using the following methods:

Device fingerprinting was found to be one of the strongest methods to stop collusive behavior such as bonus abuse and chip dumping, as multi-account abusers often operate all their fraudulent accounts from the same device

Password hash analysis was discovered to be more likely to catch all but the most sophisticated fraudsters, as scaled multi-accounting abusers will rarely be creating unique passwords for all of the fraudulent accounts

Digital footprint analysis – legitimate emails and phone numbers are often linked to at least a few social media accounts and other online platforms, which says a lot about their owner. More on this below.

IP fraud score analysis – similar to device fingerprinting, an IP address can reveal a lot about an individual`s internet usage, location, and potential for fraudulent activity.

Behavior and velocity checks – modules that examine someone's actions at various touchpoints, as well as compare them across time to see e.g. whether a lot of users have been logging on with the exact same IP in just a few hours.

Most of these steps can also be used at deposit, withdrawal and other touchpoints, to ensure that the right user is using the right account. For example, device fingerprinting and IP analysis can help detect account takeover (whether credentials were stolen or obtained through a phishing attack).

Finally, when topping up your account, it's important to monitor your card information to make sure it hasn't been stolen or poses a significant threat.

More importantly, business is built on user trust and player relationships. If players feel the platform is unsafe or unfair, players can count on enough competitors. Because of this, preventing fraud and showing that you're working for your players can only have a positive impact on your business in the long run.