Preventing Evolving Fraud Attacks in the iGaming Industry

Preventing Evolving Fraud Attacks in the iGaming Industry


Preventing Evolving Fraud Attacks in the iGaming Industry

What actionable steps should you take to prevent fraud attacks in the iGaming vertical? All the answers are in our downloadable guide.

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Every edition of the Online Gambling Quarterly begins with answers to the same question: how would you assess the current industry climate?

Those operating in the vertical know they work on shifting sands. New regulations, an ever-evolving marketplace, changing player habits… It all creates a challenging environment. And that’s before we even factor in fraud attacks.

This is why, at SEON, we wanted to give iGaming businesses peace of mind on that front. Don’t wonder how to prevent fraud attacks at your company any longer. All the answers are in our downloadable guide.

What Our Guide Covers: The iGaming Fraud Challenges

In the first part of our guide, we quickly go over some of the key changes and challenges you’ll face in the oncoming years.

Examples include:

  • Excessive regulation by the UK gambling commission,
  • Move to countries with fewer regulations,
  • Congested and tougher markets,
  • A long-term shift in public opinion,
  • Gambling ad restrictions in Spain…

But more pertinently, when it comes to fraud, we look at the rising rates of bonus abuse and payment fraud.

Breaking Down Bonus Abuse 

A key chapter of our guide focuses on breaking down and understanding bonus abuse in all its forms.

We look at how to prevent fraud attacks such as matched betting, arbitrage and advantage playing is leveraged by organised teams and how they automate processes to extract maximum gains from casinos.

Our section on marketing offers also shows how bonuses can backfire, and turn into lengthy manual reviews for the risk team. We offer some findings from our proprietary data that shows exactly the link between bonus abuse and lost resources.

How Self Exclusion Fraud Works

A fraudster opens an account, sometimes uses it to play, and self-excludes it.

They open a second account with the same operator, or those that fall under the same license as the parent company.

They deposit large amounts and play volatile games at max bet.

If they lose, they blackmail the operator into getting a refund, by claiming their self-exclusion was not respected.

This type of fraud is on the rise and can be extremely tough to flag using legacy systems. It is extremely difficult for companies to protect all players, even with the best intentions in mind.

Self-exclusion programmes are usually taken seriously iGaming operators, which is why it can be so disheartening to be punished by a fine. And this is doubly more unfair when unscrupulous players try to leverage these fines against the operators via self-exclusion fraud.

Don’t Lose Your Profits to Self-Exclusion Fines

A Swedish gambling operator learned that lesson the hard way when it was issues a fine of SEK4M ($431,900) in 2019 for failing to block self-excluded players from accessing their websites with alternative accounts. A bookmaker based in London was fined $31k for the same reason by the New Jersey Division of Gaming Enforcement (DGE) in December 2019.

Payment Fraud in iGaming: the Key Numbers

Last but not least, we cover payment fraud, chargeback fraud, and friendly fraud, the trio of classic fraud techniques that still cost operators too much, especially as a report found it rose by 37% from 2018 to 2019. But luckily, the second half of our guide offers solutions with concrete advice and tools you can implement today.

Examples of Solutions in the Guide: Digital Footprint

As you may already know, in fraud prevention, the more data you have, the better. The challenge is to acquire that data and validate it using data enrichment. A large section of our guide focuses on the process of enriching data through a variety of tools, such as:

  • Device fingerprinting and anti-spoofing: the phone, computer or tablet that players use to connect to the gambling platform contains tons of info. Are they using private mode or an emulator? This could increase suspicion that they are not who they claim to be. Multi-accounters favour desktop and laptop devices to access their records and fraud guides. They also allow them to install auto spin features and to work more efficiently. If the device is a laptop or desktop using mobile data (dongle) and no phone or email history, we can be pretty confident we are dealing with a multi-accounting operation.
  • Email profiling: does the email address exist? Is it from a suspicious, disposable domain? Or one that doesn’t require any verification during sign up? Fraudsters will create an email address fast, and without linking to Twitter, Facebook or other social media accounts. This is not the typical behaviour of a genuine customer, who would use an aged email address, probably used to sign into multiple social media platforms. You can read more in our email lookup tool comparison here.
  • Phone analysis: are they signing up with a real phone number? From a fixed line or mobile? And did they use that number for messaging services? Fraudsters are unlikely to register the phone number with messenger apps and other platforms. We can also flag phone numbers that come from “burner” apps, which allow people to enable numerous phone numbers on one device only.

Want to Fight iGaming Fraud on All Fronts? 

Make sure you download our guide today. We cover all of the above and much more, including:

    • How to use AI for self-exclusion fraud prevention
    • Why a multi-layered fraud prevention system could benefit iGaming operators
    • What velocity rules and machine-learning insights can do to reduce false positives, friendly fraud, and multi-accounting
    • And much more…

To learn more about fraud attacks in the iGaming industry and our solution for preventing them, please download our guide today.

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