Online Fraud in Betting and Gambling
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Given the precarious nature of this activity, gambling is a field that provides lucrative avenues for scammers to exploit. Since it is based on luck and fortune, scams and fraud can round the corner at every turn.
When offers are made of potential inside information or allegedly foolproof systems that guarantee a profit from either exercise, it can mean that fraudulent activity is at play. Caution is urged when placing a bet, particularly using large sums of money. This is because both practices essentially involve staking money on uncertain outcomes.
Online Betting Scams
We can examine trends that have emerged specifically in online betting to gain a considerable comprehension of how this fraud works. Since online betting has become increasingly popular, cybercriminals and fraudsters have taken aim at this outlet with regularity.
Attack of the Machines
Scammers frequently employ automated bots and scripts to acquire credentials from the web. The dark web, in particular, is laden with leaked information when a breach takes place. For example, cases where the data of large companies like eBay and Yahoo was the subject of theft, the details are made available in places like the dark web. Scammers seek to use such data with considerable identity testing sessions by orchestrating automated attacks.
These automated incursions affect other industries as well, besides betting and gambling. The online gaming sector is also prone to intrusions. Traffic originates from scripts and bots, particularly when an attack peaks. Moreover, it can be difficult to gauge for the business to validate whether transactions are being carried out by authentic customers or if they are part of an illegitimate attack.
Cross-Border Online Betting
Online betting portals are also a gateway for international customers. Betting companies enjoy an expansive customer base which often makes up half of their total customers. However, betting transactions that are executed across borders carry greater risk compared to local ones. Naturally, the betting industry attracts a ton of activity that is flagged as fraudulent and the chances of that transpiring are always higher than usual.
Furthermore, attacks that are executed internationally vary in methodology compared to those that are local. Device spoofing is one way to orchestrate a domestic transaction whereas identity proofing is a popular vector for internal transactions.
To counter this occurrence, online gambling enterprises, which are reaping the benefits of international customers, must deploy some form of fraud management software in their systems. A context-based solution that obtains the full degree of the transactions into account, which includes variables such as location and multiple attack vectors are utilized. This can be an effective measure against cross-border scams. It also ensures that overseas customers do not reject the company’s services.
Since those who bet and gamble leverage the convenience and flexibility and real-time connectivity of mobile devices, the onus lies on the betting company to guarantee that their platform is secure and that customers are not running an extraordinary risk by using their services. This can go a long way to deter fraud.
Mobile devices are vital for the dissemination and passage of information in the digital age. This pertains to the placement of bets as well. A lot of transactions are carried out using a cellular device for instance, given the fact that it is convenient and allows customers to maneuver even if they are on the move. Plenty of betting companies may even develop their own apps which make it even easier to place bets.
From a numbers perspective, there is a lesser chance of an attack being coordinated on a mobile device in comparison to a desktop. Despite that sense of security, the exponential increase in mobile transactions means that the likelihood that certain activity is flagged as fraudulent is still higher in contrast to other industries. However, it is only a matter of time before this outlet is also targeted by scammers. If companies have the foresight, they must protect mobile transactions using adequate anti-fraud measures.
Online Gambling Fraud
We can also delve into the notion of online gambling scams since those who incite fraud also target this particular channel, which means the pressure on gambling companies has mounted considerably. The extent of damage that is possible in online gambling can be seismic in nature. For instance, mainstream gambling website 888 was slapped with a 7 million dollar fine last year since a customer had used their service to place a total of 850,000 bets worth a whopping 1.3 million dollars, all of which was embezzled from their employer.
Although the practice is banned in many countries and also in most parts of the United States, it has still enjoyed immense popularity. Speaking from a fraud perspective, gambling is a lucrative proposition. Online operators are still learning that scammers have a lot to gain from their business ventures.
Bot attacks are one-way fraudsters take aim at online gambling platforms. In fact, this method has witnessed an augmentation recently. One justification for this dramatic increase is that most entertainment companies that operate online, gambling platforms have begun using premium models that allow their customers to store credentials such as identification and credit card details, which means this information is susceptible to theft; subsequently, scammers can employ bots to infiltrate user accounts. Alternatively, when they are not breaching customer accounts, fraudsters may also create brand new accounts using data that is stolen. The findings from different surveys have shown that 2% of all account logins in online gambling are now fraudulent.
Unfortunately, the usage of bots in online gambling is showing no signs of diminishing. One fruitful attack can mean that scammers can obtain bonuses and promotional codes, which when accumulated can be counted in the billions each year.
Have a gambling problem? You can contact Gamblers Anonymous for help!
Posted On October 23, 2018