The iGaming industry is highly susceptible to fraud, leading jurisdictions to implement strict regulations to address these risks. Despite these measures, online gambling platforms often remain vulnerable. This vulnerability arises from factors such as the high volume of financial transactions, which attract fraudsters, and the remote nature of online gambling, allowing criminals to operate anonymously.
Additionally, weak Know Your Customer (KYC) processes can be exploited using synthetic identities and deepfake technology. However, some platforms, like Wild Fortune Casino, are combating these issues by utilizing modern methods and advanced security measures to protect their users.
Operators face regulatory pressure and must balance fraud prevention with user experience, which can create control gaps. This article will explain what iGaming fraud is, how tactics are evolving, and what the future holds.
What is online casino fraud and why it matters
Online casino fraud is any illegal activity that exploits casinos, poker rooms, or sports betting sites to steal money, claim unfair bonuses, or facilitate crimes like money laundering. These scams harm both operators and players, making online gambling less fair and safe.
Common fraud types include multi-accounting (creating multiple fake accounts) and payment fraud (using stolen credit card details). Scammers also engage in money laundering and phishing, where they impersonate legitimate casinos to trick users into revealing personal information.
The consequences are severe. Both operators and players suffer financial losses. Persistent fraud erodes trust, scaring away players and damaging a casino’s reputation. To combat these threats, platforms like WildFortune casino use modern security solutions to protect their operations and users. If a casino fails to prevent fraud or comply with anti-money laundering rules, it can face substantial fines or legal action.
A closer look at types of online casino fraud
Fraud tactics are constantly evolving. This list covers common methods but is not exhaustive.
Identity theft
Scammers steal personal details to impersonate individuals on gambling sites. This information often comes from data leaks or phishing and leads to other fraud, like account takeovers. Identity theft creates serious problems for the casino, which risks fines, and the victim, who may suffer financial and reputational damage.
Credit card fraud
This involves using stolen payment card information to fund gambling accounts. Scammers use card details from data breaches to make fraudulent online deposits.
Bonus abuse
Bonus abuse involves exploiting promotional offers by creating multiple accounts with fake or stolen identities to repeatedly claim new-player bonuses. While it may seem minor, bonus abuse drains a casino’s marketing budget and undermines the fairness of promotions.
Chip dumping
Common in online poker, chip dumping involves one player intentionally losing chips to a colluding partner. The “winning” account accumulates chips unfairly, which can then be cashed out. This tactic is often used for money laundering or moving stolen funds.
Affiliate fraud
This fraud targets affiliate programs that pay commissions for referring new players. Scammers generate fake commissions by creating bogus accounts through their own affiliate links or using bots to simulate player activity.
Account takeovers (ATO)
An ATO occurs when a scammer gains unauthorized access to a player’s account, often through phishing or credential stuffing. Once inside, they can steal funds or use the account for other scams. Casinos mitigate this risk with strong passwords, two-factor authentication, and monitoring suspicious logins.
As technology advances, so do fraud tactics. AI helps create realistic synthetic identities that can pass basic ID checks, and deepfakes — AI-generated images or videos — make it harder to verify identities.
Who is at risk: targets and vulnerabilities
While scammers are motivated by money, there are three common targets:
Online gambling operators
Casinos, poker rooms, and sportsbooks are primary targets. They suffer direct financial losses from chargebacks and bonus abuse, which erodes profit margins. Persistent fraud also damages player trust and can lead to regulatory fines or license revocation.
New users
Inexperienced players are often easy targets for fake casino sites or deceptive emails. Users with weak passwords on platforms with poor security are particularly vulnerable to account takeovers.
VIP players and high rollers
Their large deposits make them attractive targets for sophisticated fraud schemes. Their personal data is also highly valuable on the dark web.
