The Internet has become an essential, not to say indispensable, part of our lives. We read newspapers or books online instead of on paper, have items delivered to our doorsteps rather than going to the mall, and replicate theatrical experiences at home. Even before we went into lockdown, there were digital platforms allowing us to play games remotely. Not all digital interactions are created equal, though. iGaming has exploded in popularity over the last few years, becoming a multi-billion-dollar industry. Table games, slots, and football betting have universal appeal, and while the classics never go away, they need to make room for newcomers.
There is a great appetite for wagering opportunities across iGaming and sports betting, and delivering both translates into greater content depth and more variety for players. Betting partners provide freedom of choice for clients to maximise their success in the market, offering proven original solutions from web and mobile platforms. A professional content provider offers services and a high-quality product for every stakeholder, especially the audience. While online gambling platforms offer a space for the general population to build community, they’re targets of fraudulent activity. iGaming fraud most certainly results in a decrease in operators’ revenue numbers and profitability, to say nothing of long-term reputational damage.
Even In 2024, iGaming Fraud Remains A Major Problem
According to the findings of Sumsub, a global identity verification platform, fraud increased by 64% in the iGaming industry between 2022 and 2024 due to the sheer volume of players and the financial value associated with in-game assets. Despite the fact that operators are implementing first-class solutions for risk management, fraudsters somehow find a seat at the table. Players can lose money and personal information as pieces of digital media are manipulated to replace their likenesses with those of others. Cybercriminals exploit AI to execute sophisticated fraud schemes, and deepfake represents a serious threat.
In the simplest terms, iGaming fraud is any type of activity that is deliberately deceitful, dishonest, or untrue and directly targets iGaming operators, web-based casinos, and online bookmakers. In light of the specific demands of the iGaming business model, charlatans resort to very specific tactics to manipulate the system for their own personal gain. Some attacks fall within grey areas, while others are grossly fraudulent. The iGaming industry, which is expected to expand to $107 billion in 2025, is the perfect playground for fraud. As more and more people turn to online gambling activities as entertainment, fraudsters leverage this opportunity to move up to the top level in the future.
Some Of The Most Common Fraud Schemes That Threaten iGaming Companies
Here is a short list of the most common schemes used to execute fraudulent scenarios:
- Multi-accounting: Multi-accounting involves creating or using multiple accounts under different identities on a single platform. Although different personal details are used, they’re controlled by one person to evade detection and engage in activities discouraged by the terms of service. For example, fraudsters can manipulate promotions in their favor.
- Affiliate fraud: Unscrupulous affiliates manipulate the formal rules and procedures that are intended to preserve the system. Types of threats include but aren’t limited to fake traffic, cookie stuffing, proxy users, ad stacking, click spamming, commission evasion, and software fraud (bots).
- Gnoming: Players create new accounts under someone else’s name after a platform has either banned them or placed restrictions on their account. The accounts can be in the names of friends, family, or fictional individuals. Gnoming is no laughing matter, as it costs the industry billions yearly.
- Bonus abuse: Bonus abuse is the exploitation of bonuses and promotions offered by an iGaming operator. Such a crime compromises the marketing plan of a platform, making it impossible to determine its true impact or understand new user growth. Different methods are used for bonus abuse, such as account takeovers and bot networks.
Fraud Can Have Devastating Consequences On The iGaming Industry
Severe fraudulent activities can have harsh repercussions for the iGaming industry, creating a ripple effect throughout the supply chain. The high financial losses directly erode companies’ profits, which means that operators are losing crucial dollars to fraud and customers are losing more money to scams. To put an end to such losses, fraud prevention must be adaptable, resilient, and agile to effectively deal with the evolving threat landscape. Even if a platform capitalizes on innovative gaming software to create an experience that considers a range of needs, players may still leave due to concerns over fairness and profitability.
The news of fraud spreads quickly through social media and news outlets, which means that an iGaming operator’s reputation is on the line. When players themselves fall victim to fraud, they’re less likely to engage with the platform, which in turn can impact the community and it’s long-term success. Gambling platforms have evolved from bet placement and spinning reels to hubs for community building and interaction. Most importantly, iGaming is a regulated industry, so operators must adhere to strict standards to avoid having their licenses revoked. Fraud can lead to regulatory violations, resulting in penalties and legal complications.
Done Right, Fraud Prevention Will Ensure iGaming Stays Ahead Of The Curve
Regrettably, iGaming fraud is lucrative, and the barrier to entry is extremely low. Fraudulent activities have evolved with the digital revolution, but the core goal remains: to exploit trust to strip victims of their assets. Fraud prevention poses immense challenges due to the unique nature of online gambling platforms and the complex strategies used to exploit vulnerabilities. Too much friction can lead to drop-offs, frustrating players. Analysing behaviours, verifying identities, securing payments, and conducting regular audits keep fraud from occurring. iGaming operators require customisable and adaptive anti-fraud solutions to lead effectively in a dynamic environment.
For every customer that signs up, there are just as many impostors waiting in the wings to intercede, and as we’ve been able to see, deception has many faces. It only takes one step to cause serious financial loss and long-term damage to a company’s brand, so operators must implement vigorous preventative measures to minimise vulnerability and fraud risk.
