Millions of people gamble online, which results in thousands of online casinos and bookmakers. Even though all websites are unique, some options they offer are similar. Also, it seems like most iGaming operators “suffer” from the same problems when it comes to gambling fraud.
According to Nostrabet.com, around 9.9% of iGaming frauds are related to money laundering. This may shock some users, but those involved in the iGaming business long enough are probably not surprised. “Money laundering is a huge problem in almost every country. Criminals are becoming more innovative, and a lot of them started focusing on online gambling. Regardless if it comes down to casinos or bookmakers, players do everything possible to launder their money”, said Kristiyan from NB.
What’s interesting is that most casinos and bookmakers took extreme measures to fight money laundering. A lot of them have unique software that detects suspicious activity and betting patterns. Furthermore, almost all operators have addend a unique security check that requires clients to reveal their identity before using specific servers.
Despite all these measures, money laundering continues to be a problem. Things are even more complicated if we consider the different cryptocurrency bookmakers and casinos. Most authorities have difficulty tracking transactions made with digital currencies.
Money laundering is just one of the many iGaming frauds you will come across. There are 5 additional things that you have to be aware of, so let’s dive in.
#1 Bonus Abuse
One of the things you will find while looking for a new gambling website is a bonus section. Sure, there are iGaming operators that do not provide any promotions yet, but most brands are not like that. On the contrary, they do everything in their power to add as many offers as possible because this allows them to bring in more clients.
While on the topic of bonuses, their abuse is among the most common iGaming frauds you will encounter. The data reveals that close to 69.9% of all illegal activities related to online gambling are somehow connected to bonus abuse. A lot of you will be shocked by these results, but the reality is that users always think of different things they can do to make the most out of the reward they’re using.
When it comes to bonus abuse, it can come in many different forms. Usually, most people try to mess up with the wagering requirements. These rules prevent them from withdrawing their offers, so gamblers think of all sorts of ways to complete them as fast as possible. Sometimes, there might be a glitch while using certain bonuses, and clients may complete these requirements much faster than usual.
Another common form of bonus abuse is related to the things that people can use their bonuses for. This is one of those iGaming frauds where users do not adhere to the rules and use the reward for something they want, even if it’s not included in the bonus.
Lastly, many clients also try to abuse the deposit requirements. Most bonuses require people to deposit funds to unlock the given reward, but users do everything possible to add fewer funds and get the offer they want to use.
#2 Other Fraud Types
The next category that we wanted to include when it comes down to iGaming frauds is “other fraud types” because there are tons of smaller things that people try to take advantage of. Since we have been a part of the gambling business for years, we have seen all sorts of things. Usually, each gambling market has its own common frauds, so it’s no surprise that 6.4% of the iGaming frauds fall into this section.
A good example of a common iGaming fraud type is when people lie about their identity in order to use a specific website. If you analyze any of the leading online bookmakers and casinos, you will see that they all require you to share personal data. Gambling websites need that data because they have to make sure you meet their requirements.
Since some people know that they can’t use the specific site, they often abuse this process and provide false information. In most cases, they won’t have any problems registering with this data and even playing, but these clients won’t be able to withdraw their winnings. Once it’s time for this step, casinos and bookmakers will require them to prove their identity.
Other iGaming frauds can include using a VPN. The latter is an extremely important tool for many users because it’s the only thing allowing them to access a gambling site. The VPN tricks the betting platform/casino into thinking that the player is residing in a specific country when in reality, this is not true.
Gambling websites do not allow their clients to use a VPN because they must adhere to the rules of gambling regulators. In other words, specific users should not be able to access the platform.
#3 Opposite Betting
The next iGaming fraud we have to discuss is opposite betting. As its name suggests, it is found among online bookmakers and it’s something that people do when they want to bet on sports.
The stats show that close to 2.3% of all iGaming fraud activities are related to opposite betting. This is an activity where at least 2 people have to work together and bet on the opposite side of a given bet. However, some people may use opposite betting as a synonym for arbitrage betting.
In case you don’t know, arbitrage betting is a popular strategy that requires people to use at least two different bookmakers. The idea behind it is to choose a specific event and place bets on each market from a specific selection. For example, people often wager on 1×2 and cover all possible outcomes. If done right, this strategy will ensure that the person will win regardless of the outcome.
It goes without saying, but both things are not allowed. Online gambling operators usually have a special section in their T&Cs that prohibits users from placing these bets. People who violate the rules will usually have their accounts suspended, so it’s not a good idea to do that.
#4 Chargeback
It’s no surprise that the payment options will be involved in at least a couple of iGaming fraud activities. According to the stats, close to 5.6% of all frauds in online gambling have something to do with chargeback. This is an activity where gamblers decide to request their money back after depositing at a given online gambling operator.
What’s important to know about chargebacks is that they are only possible when using specific payment solutions. Usually, players can request a chargeback if they’ve deposited with a card or a specific e-wallet, such as PayPal. Chargebacks are usually not available if the gambler deposits money with cryptocurrencies.
The reason why chargebacks are not allowed is that people can abuse them in many different ways. The most common thing that gamblers do is to request a chargeback after they’ve deposited and lost the amount. When this happens, the given payment gateway could give them back their money. Usually, this means that the online casino/bookie will appeal this decision.
Situations like this usually take a long time to resolve, but in the end, most gambling companies win the argument. They have to prove that the person deposited and lost the amount.
#5 Payment System Fraud
Finally, we have the payment system fraud, which can be divided into many smaller groups, depending on the activity. It seems like 5.9% of all iGaming fraud activities are related to some kind of payment system fraud. These stats are probably unsurprising because users are doing everything possible to “scam” the operator.
We have seen many different types of payment system fraud, especially when crypto is involved. Some people try to make transactions with digital currencies that no longer exist. There are also cases where gamblers find a glitch and can make several deposits without actually spending money.
Of course, there are also loads of frauds when it comes down to withdrawals. People come up with all sorts of ideas to bypass the regulations imposed by the betting operators. Some try to use payment gateways that are not supported, but you can also find clients who wish to withdraw without meeting the minimum requirements. There are also instances of gamblers who request too many withdrawals per day or month (most have limitations).
Final Thoughts
Since a lot more people start gambling online, it’s no surprise that the number of iGaming frauds will increase. Gamblers always try to bypass the rules so that they can make the most while gambling. Needless to say, operators also do everything possible to regulate each user’s activity, so we expect to see even more security features in the next couple of years.
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