Occurrences of Fraud in the iGaming World and How to Prevent Them

Fraud continues to be a major concern for online gaming companies. Whenever there’s a big sports event, the amount of money being dealt with goes through the roof, and the rules are always shifting. Trying to expand into new areas becomes even harder because of these ongoing challenges. These companies are really in need of reliable tools to catch fraud. It’s crucial for them to feel confident about expanding their business. Picture it like a high-stakes game where having the right tools can make or break their success. They’re on the lookout for a tailored system that fits their needs perfectly.

It’s not just about stopping fraud; it’s about using different reliable methods to prevent them to ensure your online gaming can keep growing in a safe and secure manner. Loads of igaming portals these days are seeking a comprehensive solution that safeguards their growth, maintains trust with their customers and secures their position in an ever-evolving market.

Prevalence of Frauds in the iGaming Sphere

The presence of fraud poses an escalating threat to enterprises navigating the iGaming domain. On a global scale, digital fraud rates in iGaming ballooned during the past decade and could increase even further if not addressed in the right manner. Seasonal spikes in transactional activities during major events, coupled with the ever-evolving regulatory landscape and the complexities associated with venturing into untapped markets, have underscored the pressing necessity for igaming operators to rely on trustworthy fraud detection mechanisms and igaming payment processing services.

This reliance is integral to fostering a sense of assurance in business growth within this high-stakes world. Businesses operating within this realm recognize the importance of having a robust, tailor-made fraud prevention strategy catering precisely to their unique needs.

Why does the iGaming World Attract fraud more than Other Sectors

The iGaming Sector encapsulates various forms of online betting where participants wager on game outcomes or events. This expansive industry encompasses online gaming, including virtual igaming platforms and sports betting sites. Online gambling and iGaming, while related, represent distinct entities within the larger industry. iGaming functions as an overarching term encompassing a multitude of online gaming and gambling activities, such as app-based betting games, skill-based gaming, online lotteries,  and fantasy sports.

The digital transformation of gaming and gambling has propelled substantial global growth, elevating the iGaming sector into a colossal and continuously expanding market valued at billions of Dollars. This expansive growth not only offers immense prospects for legitimate businesses but also attracts the attention of bad actors seeking fraudulent opportunities.

Common Fraud Types Present in the iGaming World

Fraud in iGaming spans across many regions, with North America and Europe witnessing significant growth in this field. Fraudsters globally have devised tactics to exploit security weaknesses, targeting online gaming operators throughout a player’s journey, from login to deposit to withdrawal. Some of the prevalent fraudulent schemes jeopardizing iGaming companies include:

Multiple Account Fraud                                     

Fraudsters fabricate dozens or even hundreds of accounts using false details to gain an unfair advantage online. These accounts are utilized for various cheating and collusion tactics, including:

Typosquatting

Cybercriminals create domains similar to a company’s brand or product names, aiming to attract illegitimate referral traffic through fraudulent redirects or web pages. This deceptive tactic diverts traffic to their own sites, misleading users in the process.

Bonus Abuse

Bogus accounts receive new signup bonuses and other promotional offers. While these promotions are a great incentive to get new players on board, they can quickly become a massive burden if not properly regulated. Since bonuses are usually restricted to one use per account, fraudsters create multiple accounts to repeatedly avail of these bonuses.

Affiliate Fraud

This type of fraud involves deceitful actions by a third party to benefit personally from marketing strategies like pay-per-click campaigns. For instance, some fraudsters make use of stolen data or payment information from an iGaming provider to drive leads or generate sales for their own business.

Gnoming

Imagine a player handling many accounts that seem like they belong to different people, such as friends or family members. But here’s the trick—this player is actually running all those accounts alone. These ‘ghost profiles’ can be quite sneaky. They’re used for all sorts of tricky moves like sharing rewards points or using stolen payment details for their own gain.

Steer Clear of Fraud with Reliable igaming payment processing Services

Wrapping things up, it would be fair to say that an iGaming payment gateway serves as a pivotal tool for igaming operators by offering a multi-layered approach to fraud prevention, integrating security features, implementing robust monitoring and detection systems, and ensuring compliance with the right policies safeguard against fraudulent activities. High-risk payment processing services like Pay. cc know that fraud is a prevalent concern in the world of igaming and provides their clients with the right tools and features to help them conduct transactions without worrying about fraudulent activities impacting their finances.

Michael