Understanding the Deception: A User-Interactive Handbook on iGaming and Gaming Swindles (2024)
In the rapidly growing iGaming industry, fraud poses a significant threat to both players and platforms. To safeguard the integrity of iGaming and protect players, platforms must employ a multi-layered approach to security.
Common types of iGaming fraud include the creation of fake or multiple accounts, identity fraud, payment fraud, bot attacks, collusion, geo-location spoofing, and account takeovers. Scammers exploit bonuses, referral programs, and even use stolen or fake IDs to gain unauthorized access.
To prevent these fraudulent activities, iGaming platforms can implement several strategies. First, strong user verification at registration is crucial. This includes KYC and AML checks, biometric facial recognition, and document verification to ensure authenticity and uniqueness. Age and self-exclusion verification are also essential to block underage or restricted players.
Second, device intelligence and behavioral analysis can help spot multiple accounts from the same device, suspicious rapid account creations, collusion, or abnormal activity.
Third, payment security is paramount. Secure payment methods should be enforced, and tokenization used to avoid storing card data. Monitoring for strange deposit patterns can also help reduce the risk of stolen card fraud.
Fourth, authentication and account security measures should be implemented to reduce account takeovers. Multi-factor authentication and selective strong authentication can help secure transactions, while device binding can restrict account access to trusted devices.
Fifth, geo-location controls are essential to maintain compliance and prevent fraud via spoofing. VPN use should be blocked or flagged, ensuring user location matches allowed jurisdictions.
Sixth, bot detection and automated abuse prevention are necessary to block scripts and AI agents abusing the platform.
Lastly, continuous monitoring and fraud analytics are crucial. Establishing velocity limits, purchase frequency rules, and real-time alerts for unusual behavior can help detect suspicious activities.
Advanced solutions, such as those developed by third-party professionals, can detect activities like new device logins, unusual geographical locations, and abnormal transaction amounts. Companies should be able to spot affiliate fraud, account takeover, chargebacks, and promo abuse.
Regulators in various countries, including the United States, Australia, United Kingdom, Sweden, and the Netherlands, have issued record financial penalties to online and land-based gambling operators for failing to prevent or adequately address fraud. The iGaming industry is expected to surpass $172.2 billion by 2030, making regulators take a closer look at compliance, imposing heavy fines for violations of AML and responsible gaming requirements.
Reputational damage in the iGaming industry can lead to a loss of trust among players and potential partners. To combat this, platforms must prioritize fraud prevention and maintain a strong commitment to player protection.
Sumsub is a platform that can simplify the onboarding procedure, monitor player behavior throughout the entire player lifecycle, and ensure compliance in the iGaming industry. Their 2024 iGaming Fraud Report can be downloaded by entering an email.
In summary, iGaming platforms can best prevent fraud by applying layered defenses from user onboarding to payment withdrawal, combining advanced identity verification, device and behavior analysis, secure payments, authentication, geo-fencing, and bot detection technologies. Regular monitoring and prompt action on suspicious behavior are also crucial to safeguard players and ensure integrity.
Sports enthusiasts play various games under the iGaming industry, where fraudulent activities can negatively impact players and platforms. To ensure sports bettors' security, platforms should verify user identities at registration, employ device intelligence and behavioral analysis, enforce secure payment methods, implement authentication and account security measures, use geo-location controls, detect bots, and continuously monitor player behavior for suspicious activities.
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