3 Dangerous Types of Online Gaming and Gambling Fraud

For millions of people worldwide, online gaming and gambling are excellent ways to wind down after a long workday or enjoy some fun during a leisurely weekend. It’s even a decent way to socialize and enjoy the camaraderie of others as you try your hand at something new.

However, while gaming and gambling online can feel like a haven, there are associated risks—and fraud may be the largest one. Even those who use these sites and platforms purely for recreation become targets, not to mention publishers. The unfortunate reality is that each internet connection is a conduit for bad actors who manipulate people and platforms to further their agenda.

Much like fintech companies use cutting-edge software to detect new account fraud, gaming and gambling platforms can use tools to deter or catch fraudsters before they strike. Here’s a list of three types of online gaming fraud worth defending against.

Account Takeover Fraud

Like any business, online gaming and gambling companies need users for their operation to thrive. You can’t secure growth without a robust, growing user base. That’s why successful companies prioritize account integrity. By assuring users that their personal information, progress, and bets are protected, companies can establish the trust necessary to continually gain new users and retain their loyal customers.

Users who fall victim to account takeover fraud are among the most likely to abandon a platform permanently. It’s a rational decision—they don’t want to invest their time into a site when their progress or personal details can be stolen from them overnight.

Promo Abuse

As the Latin writer Publilius Syrus once said, “Everything is worth what its purchaser will pay for it.” Some of the people who know this best are those who misuse the internet to defraud and manipulate everyone, from casual gamers and gamblers to respected financial institutions. Even seemingly harmless promotional offers are targets for bad actors.

Whether they do it themselves or program and automate bots, fraudsters can take advantage of rewards for first-time players and other marketing promotions. For example, bad actors can use synthetic identities to create countless new accounts and acquire the promo item—it could be unique loot, for instance. Then, they can sell it on a trading site.

It’s not just about unfair dilution—this kind of fraud can cost companies revenue. That’s why identity orchestration software is critical. From insurers to online lenders, any organization with a digital presence should rely on identity orchestration tools for early, real-time warnings of potential fraud.

Underage Gambling

Innovative ID verification tools can also make a huge difference in discouraging underage gambling on online platforms. The legal age for gambling in most countries, whether it happens online or in person, is 18 years old. As a result, betting and gaming platforms want to do everything in their power to ensure users truly are who they say they are by verifying their age.

The truth is, allowing minors onto gambling platforms can have significant impact on operators, both financially and legally. Whether it’s online gaming or sports betting, underage gambling presents many areas for concern. With that said, there are steps your institution can take to enhance your verification measures to comply with the most up-to-date regulations.

It’s essential to achieve the right balance of protection and friction when verifying a user’s age and identity. Some strategies could lead to lackluster results, but fraud detection tools that go beyond PII-based detection can give you the upper hand.

When a new user joins your platform, advanced fraud detection measures can analyze their digital body language and flag instances where the user doesn’t seem familiar with their personal information. They might copy and paste details into the application form or retype information multiple times. When this occurs, you get notified of potential risk, and your step-up verification measures can intervene immediately to conduct further verification where necessary.

About NeuroID

With compromised PII and devious strategies like synthetic identities at their disposal, digital fraudsters are more cunning and aggressive than ever before. That’s why leadership teams are turning to NeuroID for a proactive approach to fraud detection that leverages cutting-edge technology. That way, you can catch would-be fraudsters at the point of attack. Instead of relying on PII to verify identity, NeuroID harnesses the power of behavioral analytics, passively monitoring every user’s taps, swipes, and keystrokes as they interact with your site forms in real time. By reading the digital body language of each user to spot risky activity, NeuroID delivers superior ID verification based on behavior to help your organization stay ahead of fraud activity.

Enhance your fraud detection with behavioral analytics from NeuroID at https://www.neuro-id.com/