The iGaming industry faces a new era of fraud that is evolving faster than many operators can counter. As AI-powered attacks grow in speed and sophistication, traditional defenses fail to keep pace. Insights from SEON’s poll of 75 senior fraud leaders at iGB L!VE London 2025 highlight an urgent need for a more adaptive, intelligent approach to fraud prevention.
AI-Driven Fraud is Outpacing Defenses
AI is introducing threats that are more dynamic, personalized and difficult to predict. SEON’s research reveals that 77.4% of senior fraud leaders agree AI-driven fraud is evolving faster than their current systems can detect and prevent. This growing gap between threat and defense is corroding industry confidence — only 22.7% express strong confidence in their existing fraud setups, while 57.3% have little to no confidence.
The repercussions are already visible: 57.3% of operators reported a rise in fraudulent activity over the past year, with bonus abuse (46.7%), payment fraud (34.7%) and identity fraud (32%) cited as the most common threats. Chargeback fraud (24%) and account takeovers (22.7%) are also rising. These aren’t isolated incidents but represent a strategic threat that outdated, fragmented tools can no longer effectively counter.
The Friction Between Security and Experience
The need to stop fraud is indisputable, but so is the need to retain players. According to our research, onboarding remains a major friction point. Over 37% of platforms report abandonment rates of 21–30%, and 20% say 41–50% of potential players never complete registration.
Why are players dropping off? The top reasons are telling:
- 56% cite too many steps
- 50.7% blame ID verification issues
- 33.3% express a lack of trust in the platform
- 24% note technical difficulties
This balancing act pushes some operators to consider dangerous compromises: 36% have considered relaxing or deprioritizing fraud checks to improve conversion. However, reducing controls invites greater exposure to fraud, a short-term fix with long-term consequences.
More Innovative Solutions for a New Era of Threats
The real challenge lies in stopping increasingly sophisticated fraud without disrupting the player experience, and SEON’s approach is built precisely to solve this issue. By leveraging real-time signals before KYC ( like email, phone, IP and device data), iGaming platforms can stop fraud earlier, faster and more accurately.SEON’s technology combines advanced device fingerprinting, IP analysis and custom risk scoring to detect real-time fraud, adapting instantly to new tactics and attacker behaviors. This approach is ideal for combating bonus abuse, chargebacks and account takeovers, without slowing down legitimate users.
A Better Future for Platforms & Players
The iGaming sector is under mounting pressure, and AI-driven fraud is no longer just a technological concern. It’s a business-critical threat that undermines revenue, erodes player trust and weakens competitive positioning. Fragmented tools are ill-equipped to meet the moment.
By fighting AI with AI, SEON helps operators stay ahead of emerging threats, boost conversion rates, and build trust with legitimate players. Intelligent, real-time fraud prevention isn’t just an upgrade; it’s a necessity.
