Online Fraud 101-Gambling Edition

The risky nature of online gambling is part of the adventure. However, the risk for operators is a bit different from that of players. The operators are increasingly becoming great targets for iniquitous individuals who take advantage of platform loopholes to conduct fraud. 


The Commonest Forms of Gambling Fraud

Although fraudsters are constantly developing new and creative ways to exploit systems, some forms of fraud are more common. 

The foundation of many gambling offenses involves fraudsters creating several accounts with fake documents to get an online advantage. These fraudsters could use such accounts for:

  • Bonus abuse. This is where multiple fake accounts get several attractive offers such as fresh signup bonuses and coupons. These promos are only meant for attracting new players. Therefore, you will make serious losses by dishing out too many of the promos.
  • Gnoming. This is where fraudsters cause multiple accounts to deliberately lose so that one account can win and get all the bonuses.
  • Chip dumping for poker tables. In this case, several accounts go to the same table to trick the system so the results can favor or go against a certain player. 

Apart from creating multiple accounts, fraudsters also attack payment processes in the following ways:

  • Using stolen credit card details to top up one’s account. 
  • Requesting a chargeback from one’s bank or credit card issuer after topping up the account. The fraudster will often get a refund at the gambling company’s expense because of the overseas location of the company or its lack of registration.
  • Calling burner phone holders and tricking them into replenishing their accounts, only for the money to go to the fraudsters’ gambling accounts.


Detecting and Preventing Online Gambling Fraud

Knowing your customers is among the most important processes of conducting online business. There are several steps to these, including basic user registration precautions such as:

  • ID verification 
  • Age verification
  • PEP check for prominent public personalities

Also, continually monitor data during registration using:

  • Device fingerprinting
  • Email analysis
  • IP analysis

You can also use some of these methods during login to ensure that the account users are not suspicious. Especially, IP analysis and device fingerprinting can help identify the takeover of accounts. 

Also, monitoring credit card details during an account deposit can reduce potential risks. 



Although it is not easy for gambling operators to monitor and prevent fraud, applying a few basic solutions can go a long way in ensuring safety. However, the use of sophisticated tools for data analysis and flagging is a must. 


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