What types of fraud can there be in the iGaming industry and how is it solved?
Fraud categories relevant to the iGaming industry
The capitalization of the global gambling market reached $651 billion in 2021. Given these substantial sums, payment service providers invest significant resources in developing more sophisticated iGaming software solutions provider to minimize the risk of fraudulent transactions. Unfortunately, the virtual gambling industry is highly susceptible to fraud due to the myriad ways in which transactions can be manipulated.
Player-Initiated fraud categories
Player fraud refers to actions taken by players that violate the platform's policies.
Manipulation of personal information
Registering at online casinos is restricted to individuals who have reached the minimum legal gambling age in their country of residence. Some individuals below the legal age attempt to open accounts but face verification issues during their first withdrawal. More experienced individuals may create accounts using their parents' or other adults' names, but these attempts are typically exposed during unplanned casino audits.
Unauthorized sharing of account credentials
According to casino rules, registered players are entirely responsible for the security of their accounts and are prohibited from sharing access credentials with relatives, friends, or third parties. Selling account login information is considered fraudulent, and it poses risks as the unauthorized party gains access not only to the player's gaming account but also to personal and banking details.
Bonus hunting
Bonus hunting involves engaging in deceptive gameplay solely for the purpose of acquiring bonuses to make quick and easy money. Bonus hunters can be categorized into:
- Violators. Experienced gamblers who choose casinos with the best bonus terms, often opting for bonuses with no expiration or extended playthrough periods.
- Standard Bonus Hunters. Players who invest time studying bonus systems, promotional offers, and deals to select the most favorable conditions for themselves. They use their own funds for wagering and may either leave the casino afterward or regularly monitor ongoing promotions.
- Novices. Players who create shadow profiles, obtain bonuses, lose them due to inexperience, and then restart the process without changing their IP addresses or deleting Cookies. When they win and request a withdrawal, their accounts are typically blocked for violating rules.
In order not to arouse suspicion, bonus hunters wait for some time after registration, as the casino security service pays a lot of attention to new accounts
Multiple accounts for one player
Casinos typically allow one account per player, as each bonus offer can only be used once. Fraudsters open multiple profiles to repeatedly benefit from these offers. Moreover, having multiple accounts enables them to place bets in the same multiplayer games simultaneously and withdraw funds from different accounts.
The substantial turnover in the gambling industry attracts the attention of many malevolent actors and easy prey hunters. Consequently, casino operators and payment providers invest significant resources in developing and implementing technologies to minimize the risks of fraudulent activities and transactions. Major operators hire top-notch programmers to implement and maintain robust security systems.
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