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FRAUD PREVENTION IN THE ONLINE GAMBLING WORLD

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The online gambling industry is one of the most profitable industries in this generation’s economy. According to TheFactSite, around 51% of the total population around the globe gambles. This information alone proves that the presence of online gambling is too irresistible to the point where almost half of the world’s population is obsessed with gambling.

One of the main reasons why several people are get easily hooked on online gambling is because of the benefits that it can provide to the players. Benefits can range from huge sums of money in the prize pool to services delivered by the casino that focus on customer convenience and luxury.

Online gambling platforms are likewise gradually becoming a pot of gold that lures cyberthieves and encourages them to execute fraudulent activities such as embezzling the market players and money laundering. At the same time, there is also an activity known as collusion and chip-dumping that solely targets Tournament Game Platforms.

Collusion refers to the fraudulent act executed by two or more persons collaborating to cheat on a regular player by simply playing on a single table.

Meanwhile, in chip-dumping, it consists of two persons: One is the dumper, or the one who is prepped to lose; and the receiver, the individual who has been planned to win from the very beginning. Dumpers and receivers may seem like they are competing against each other at first glance, but the truth is they are working together to achieve a common goaland that is to lose as much as possible and as fast as possible against the receiver who will then be withdrawing the prize illegally. As a result, both parties will benefit from the scheme. 

The alarming reality about online gambling and online casinos is cyberthieves don’t stop at the simplest form of scamming unsuspecting players. They are also notorious at utilizing skimmed cards along with fake corresponding documents to deposit money into a dummy account.

Owners of online gambling businesses or casinos should employ preventive measures to prevent scammers from victimizing players. Better yet, they must exert effort in seizing cyberthieves and putting a stop to their fraudulent ways.

How can scammers or fraudsters in online gambling be spotted?

The first step in identifying fraudsters is by knowing one’s customers by heart. Getting to know the customers and patrons of an online casino is essential to the business, and should therefore be exercise the moment a new player registers into the system. During the registration process of new members, basic information about the players can be recorded through the following:

  • ID Verification — It requires members to present a valid ID
  • AGE Verification — Ensures that members are of legal age at the time of their registration
  • PEP Checking (Politically Exposed Person)Identifies individuals who happen to be prominent public personalities (e.g. politicians, high ranking military officers, renowned celebrities, etc)

Monitoring collated data from different signup information is also a must to ensure 100% security. There are various methods that can be implemented in order to achieve this:

  • Device & Machine FingerprintingHelps gather information on the device used by the player to access the casino’s website
  • Email Analysis Tracks down fake accounts by analyzing accounts that are in sync with the user’s email address
  • IP AnalysisSimilar to Device Fingerprinting but covers a broader scope, making it possible to track down the possible origins of fraudulent activities by using demographics-based data

Both IP analysis and Device Fingerprinting are useful methods in flagging account takeovers that are mainly caused by stolen credentials and phishing links.

Aside from the registration process, the procedures involved in account top-ups also provide opportunities for business owners to discover any fraudulent activity taking place within their online casino. Keeping track of account top-ups means ensuring that all transactions via credit cards are well-monitored. It helps identify stolen or skimmed cards being used to transact, register or avail the services offered by the casino.

Apart from the steps suggested above, Third-party Solutions can also be employed to boost member security against fraud. Third-party solutions include but may not be limited to the following:

  • AML Regulators (Anti-Money Laundering)
  • Cash in and Cash out Monitoring
  • Games Monitoring
  • ID Verification Provider
  • PEP List Provider
  • Sign up and Login Monitoring

Preventing and monitoring fraudulent activities in the digital world is not as easy as it seems. That is why countermeasures should be implemented along with sophisticated tools to help lessen the risk of online casinos and online gambling patrons becoming a potential target for cyberthieves.

It is a must for owners of online gambling ventures or online casinos to embrace digital tools and methods that enable safe operation, convenience and security for their players. It also helps them keep their pace against the growing competition in the industry. Running an online gambling business means customer’s money is at stake, and it is the responsibility of online gambling providers to prove that their business and services can be trusted.

Be transparent in all the processes being carried out by the business. Constantly exhibit that the business operates within the boundaries of high security for this can lead to positive consequences for the online gambling business on a long term basis.

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