Using AI to Promote Responsible Online Gambling and Self Exclusion

by Florian
Questions about online gambling fraud you were too afraid to ask? You’re in the right place. In this series of articles, we’ll look at the very basics of fraud, how it affects businesses, and how to protect yourself with the latest solutions.
Gambling is inherently risky. It’s part of the thrill. But for online gambling operators, this risk takes a different form than for its players. It’s to do with fraud, and the amount of ways in which nefarious individuals can exploit loopholes in their platform.
As the online gambling market continues its meteoric rise (expected to reach 1$ Trillion by 2021), operators become increasingly high targets. Today, we’ll see what kind of challenges they face, and how to protect their business in the long run.
While fraudsters tirelessly come up with new creative ways to exploit the system, there are a number of common attacks to watch out for.
Then, there are the payment attacks. Online casinos and gambling platforms are essentially digital wallets, so processing payment means a potential for losses there too.
Finally, like with real brick and mortar casinos, owners have to watch out that they do not become a place of choice for money launderers. Any place that processes large amounts of money can be used to make illegally obtained cash legitimate, and gambling institutions are a choice destination for criminals.
One of the most important processes for any kind of online business is to follow a good KYC practice (Know Your Customer). This will involve a number of steps including the very basics during the user registration:
During signup, you can still continue monitoring data using the following methods:
Some of these steps can also be used at login, to ensure that the right user is using the right account. Device fingerprinting and IP analysis can also help flag account takeovers (whether credentials have been stolen or acquired through phishing attacks).
Finally, during account top ups, it’s important to monitor the credit card information to ensure it hasn’t been stolen or doesn’t pose a high risk threat.
Cross Referencing huge amounts of data is humanly impossible, which is why fraud managers will need to turn to third party solutions. These will include:
Gambling operators and online casinos do not face an easy task when it comes to monitoring and preventing fraud. Since they essentially operate as digital wallets, they will run into numerous risk factors, which requires sophisticated tools to analyze and flag data.
However, like numerous other industries, implementing even a basic solution could be a huge boon. For instance, it will help them prevent loss of income from chargebacks, which can help increase their bottom line.
More importantly, their business relies on user trust and building relationships with the players. If they do not believe the platform is safe or fair, they have enough competitors to turn to. Which is why preventing fraud and showing players that you are working for them can only have positive consequences on your business in the long term.