Whether you prefer playing slots, bingo, or betting on your favourite sports, the proliferation of gambling sites makes it easier than ever to wager money online. And online gambling is thriving: research by the UK Gambling Commission found that Remote Casino, Betting and Bingo (RCBB) generated more than $6 billion in a single year.
But while many businesses across the industry are enjoying substantial success, they also face a wide range of risks — including fraud.
This is a common issue with the potential to cause serious disruptions for gambling companies of all sizes, but what does it involve? And what can be done to stop it?
Below, we’ll explore how gambling fraud is committed online, the most common types, and what companies can do to fight it.
What is Online Gambling Fraud?
Online gambling fraud refers to criminal and unethical activities targeting businesses and customers. Perpetrators can perform fraudulent acts in sports betting, casino games, and any other type of gambling available online.
The nature and scale of fraud can vary. It may involve trying to manipulate a few players at a little-known site, or it might be a bigger scheme targeting the biggest companies in the industry. Fraudsters could try to manipulate the outcome of a sports event, steal money from customers, or try to trick online casinos into awarding prizes when they shouldn’t.
What are the Most Common Forms of Online Gambling Fraud?
Bad actors can engage in a wide range of fraudulent behaviour against gambling businesses and their customers. Common types include:
- Promo or bonus abuse: Fraudsters may try to take unfair advantage of bonuses at gambling sites to get more than they’re entitled to. One technique is to set up multiple accounts in different names to claim several bonuses.
- Software tools and bots: Perpetrators can use various tools or bots to manipulate online games. These can find vulnerabilities and exploit them for their own gain. They may use complex strategies to help fraudsters achieve better results than they would on their own.
- Stealing data: Using a player’s details to log into their account to steal money or sensitive data is a particularly intrusive type of online gambling fraud. They may gain access to credentials through social engineering or simply guessing passwords with blunt-force attacks.
- Stolen credit cards: Fraudsters can steal credit cards or just the key information associated with them to fund betting. They may make wagers and withdraw winnings before the victim realises anything is wrong.
- Chargeback fraud: In some cases, a player may try to recover lost funds by claiming that a transaction at a gambling site was fraudulent. That can cause problems for businesses, but it’s simpler to identify today thanks to cutting-edge anti-fraud technology.
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What Can Online Casinos and Players Do to Fight Online Gambling Fraud?
Customers and companies providing gambling services can combat online fraud in various ways. These include:
- Stringent identification verification: Companies may employ numerous techniques to verify customer identities and make sure players are legitimate. These include multi-factor authentication (MFA) tools that require more than one type of verification, rather than relying on a username and password only. Options include scanning a fingerprint or entering a code sent to a registered phone by SMS.
- Analysing online transactions: Gambling businesses can use transaction analysis to study large volumes of data and pinpoint suspicious patterns.
- Be vigilant with your account: Players can help fight gambling fraud by checking their accounts (for banks, e-wallets, etc,) regularly. If you spot any signs of unusual activity on a gambling site, report it to the service provider immediately.
- Monitoring accounts in real-time: Operators can use continuous monitoring technology to track activity in their accounts in real-time and take action sooner rather than later. That makes it easier to find threats in time to stop them.
How to Find Safe Gambling Sites Online
Online fraud is a common issue in the gambling industry, affecting companies and customers alike.
The best gambling sites use strict security measures to reduce the risk of online gambling fraud and protect their customers. No site can be guaranteed 100% safe, but reputable businesses leverage reliable tools and technologies to provide players with valuable peace of mind.
At Gambling Zone, we only recommend sites that are licensed and regulated by trustworthy bodies. Always check that any gambling site you visit holds a licence and uses standard security methods to help protect players from fraud.
