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Identifying Fraud in Online Gaming

Internet fraud affects many sectors, including online gaming or iGaming. Unfortunately, gambling operators and online casinos face a difficult task when it comes to controlling and preventing fraud. Functioning essentially as digital wallets, they face numerous risk factors, requiring sophisticated tools to analyze and flag data.

However, as in many other sectors, applying a solution, even if it is basic, can be a great advantage. For example, it will help operators avoid losing revenue from chargebacks, which can help them increase their profits. It also allows them to offer better deals to their customers, especially when presenting options like Super Bowl odds.

Common Types of iGaming Fraud

Although scammers keep coming up with creative new ways to break the system, there are several regular attacks to pay attention to. Operators increasingly know how to identify these, providing better user protection.

Multi-account fraud is the foundation upon which many attacks are constructed. Scammers create a long list of accounts using fake or false credentials. These allow them to conduct several compromises. It also allows them to skew sports betting like Super Bowl lines.

Bonus Abuse

Numerous fake accounts can take advantage of sign-up bonuses, discounts, and free offers. Although these promotions are an excellent way to attract new players, they also lead the iGaming platform to incur losses if they give away too many.


This also uses multiple accounts for the benefit of a single person. However, the individual uses other accounts that lose intentionally. As a result, they rake in all of the winnings and bonuses.

Chip Dumping

This is a common practice most often seen at online poker tables. Similar to the concept of Gnoming, multiple accounts are created and then join the same table.

As a result, the individual can manipulate the system and sway the game’s results. This can be to dupe a player out of money or rake in the chips in a closed game.

Payment Attacks

In addition, there are payment attacks, which go straight for the money. iGaming platforms are nothing more than digital wallets. As a result, processing payments can also result in losses.

Stolen Credit Cards

Scammers can use stolen card details to fund an account. This means they are using illicit money for real profit.

Illegal Refunds

These occur after fraudsters have deposited funds into an account. They then contact their bank or card provider and request a chargeback. The bank or provider has no choice but to issue a refund. This is similar to when someone wants to bet on Super Bowl odds and loses; they could try to request a chargeback.

iGaming operators also need to ensure they don’t become a favorite place for money laundering. Anywhere money is handled can serve as a way to legitimize illicit cash.

Preventing Online Gaming Fraud

There are several processes that iGaming operators follow to reduce the risk of fraud. One of the most common is following proper Know Your Customer (KYC) practices. This is now almost completely engrained in the registration process of reputable iGaming platforms.

  • Identity verification
  • Age verification
  • PEP check (politically exposed person). This is a title that usually refers to people with a high public profile, including heads of state, high-ranking military personnel, and others

These steps can be used to log on to verify that the right user is using the account. Account hijacking can be identified by analyzing device fingerprints and IP addresses. This is regardless of whether credentials were stolen or obtained via phishing attacks.

The Impact on Operations

Online gambling sites are negatively affected by fraud. Fraud directly impacts revenue, leads to loss of resources, and has a negative effect on compliance systems. It also creates a negative reputation among customers and payment systems.

Online gaming depends on trust from its users and building relationships with them. Users who don’t trust the platform are likely to find other options. This is why it’s important to prevent fraud and show players that the platform has positive long-term consequences.

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