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Rising Deception in Online Gambling: Common Methods for Unfair Gaming Practice

Online gambling fraud cases surged by 64% compared to the previous year. This upward trend was also evident in the period spanning 2022 to 2023.

Rising Deception in Online Gambling: Common Methods for Unfair Gaming Practice

Fraud Schemes Galore: A Deep Dive into Online Identity Verification

In today's digital age, online identity verification has become a critical tool in combating various types of deceitful activities. Sumsub, a leading provider of online identity verification technologies, has unveiled the primary fraud schemes that cause trouble, such as bonus abuse, dishonest affiliate actions, illegal refunds, money laundering, and account takeovers. These harmful practices are particularly prevalent in countries like Bangladesh, Indonesia, South Korea, and Bosnia and Herzegovina.

A Closer Look at the Fraudsters' Playbook

Bonus Abuse

These cunning crooks exploit promotional offers by creating multiple fake accounts to swipe the bonuses for themselves. To put an end to this, sophisticated identity verification processes are employed, utilizing document verification, biometric checks, and address verification to prevent shady account creation.

Dishonest Affiliate Actions

Fraudulent affiliates could manipulate their activities by generating falsified leads or misrepresenting products. AI-driven fraud risk scoring and robust identity verification procedures can assist in identifying oddities in affiliate behavior and ensuring affiliates are genuine.

Illegal Refunds

Fraudsters may try to coerce unauthorized refunds by abusing return policies. A combination of secure identity verification and transaction monitoring will help detect and thwart fraudulent refund attempts.

Money Laundering

Digital platforms have become a hotspot for money laundering, where criminals exploit weak identity verification processes. Stamping out these illicit activities can be achieved through the implementation of robust KYC (Know Your Customer) processes alongside AI-powered tools that detect suspicious transactions and prevent money laundering.

Account Takeovers

Unscrupulous hackers aim to steal user accounts to enrich themselves. To protect users, new-age multi-factor authentication (MFA) methods like biometric authentication, device intelligence, and contextual authentication will secure accounts and prevent unauthorized access.

Regional Considerations

Bangladesh, Indonesia, and South Korea

In these mobile-dominated territories, mobile number intelligence is vital in preventing SIM-Swap fraud and streamlining secure digital onboarding processes. Additionally, adhering to local regulations and enforcing stringent identity verification procedures for compliance purposes are crucial.

Bosnia and Herzegovina

As digital services proliferate in this primarily cash-based economy, robust identity verification solutions will guarantee trust and security in the realm of digital transactions.

Hence, advanced identity verification technologies are instrumental in aiding businesses combat fraud by making sure users are genuine, closely monitoring transactions, and sticking to regulatory norms. The bottom line? Embracing these identification technologies is essential in maintaining trust and safety while keeping the digital world spinning in these countries.

  1. To combat bonus abuse, sophisticated identity verification processes are employed, utilizing document verification, biometric checks, and address verification to prevent shady account creation.
  2. In mobile-dominated territories like Bangladesh, Indonesia, and South Korea, mobile number intelligence is crucial for preventing SIM-Swap fraud and streamlining secure digital onboarding processes.
  3. In Bosnia and Herzegovina, as digital services proliferate in a primarily cash-based economy, robust identity verification solutions will guarantee trust and security in digital transactions.
  4. To protect users from account takeovers, new-age multi-factor authentication (MFA) methods like biometric authentication, device intelligence, and contextual authentication will secure accounts and prevent unauthorized access.
Online gambling fraud instances have swelled by 64% compared to the previous year. This corruption surge was noticeable not only last year but also in the 2022-2023 period.

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