In 2021, video gamers spent an average of eight hours and 27 minutes per week playing games. According to Limelight Networks, this represents a 14% increase over 2020. Online gaming industry revenue is expected to reach $175.10 billion by 2022. The number of users is expected to reach 3,197.7 million by 2026. Online gaming has become an ideal environment for fraudsters to operate and thrive. Fraudsters upset this delicate balance by forcing themselves into online gambling scenarios where they can cheat, hack, and steal against the house and other players.
How is fraud affecting the online gambling world, and what can merchants do to combat gaming fraud? Read more to find out.
How do Fraudulent activities affect online gaming?
Gaming fraud can reduce online gambling profits and harm merchant reputations in an industry where trust is difficult. Such activities create long-term damage to the party in concern.
Following are some of the damages that an online gaming platform incurs due to fraudulent activities.
- Revenue loss
- Bad Reputation
- Waste of resources
- Overwhelmed customer support
- Compliance issues
- Poor customer satisfaction
As long as your site stays safe, all seems good; but a single attack can shake your business to the core. Hence, the prevention of online gaming fraud is better than the cure!
Most Common Online Gambling Frauds:
While fraudsters are constantly devising new and inventive ways to exploit the system, these are some common attacks and scams to be aware of.
Multiple Accounts Fraud:
This is the foundation upon which many gambling attacks are constructed. Fraudsters create dozens, if not hundreds, of accounts with forged credentials to tip the scales in their favor. Identity theft is also a common practice in online game gaming fraud.
These are used to facilitate schemes like the ones listed below.
- Bonus Abuse
- Chip dumping
Apart from the above, there are payment-related attacks. For example, online casinos and video game platforms are essentially digital wallets because they require deposits and withdrawals before you can play - so processing payment also means the potential for losses.
Following are some of the payment related fraudulent activities.
Credit Card Fraud:
- Stolen credit cards
- Money Laundering
- Friendly Fraud
- Account Takeover Fraud
How to prevent Online Gambling Fraud?
Online gambling fraud is a major concern for gaming companies. It is important to take steps to prevent online fraud and keep your online game companies safe and secure.
Following good KYC
KYC (Know Your Customer) practice is one of the most effective ways to prevent fraud for any online business. Id verification is the process on your website when customers need to upload their ID proofs to confirm that they are real people (identity verification). After that, you consider the user account validated, and the player can play and deposit freely. OptiKPI can help you with automating the complete KYC journey— let the users register, and we will send personalized offers and encourage them to fill out the KYC process. We help them submit personal information and proceed further on your platform.
If your platform supports device ID tracking, OptiKPI can help you leverage this data and use it against Gnoming. Players who create different Player IDs from the same Device ID can be easily identified and blocked. We can block such users via API to prevent online fraud (OptiKPI automatically detects it from the database and sends a command to the Back office to block the user.)
Usually if a player withdraws multiple times in a day, it could mean that he is abusing your platform in one way or other. In such cases, OptiKPI will automatically send alert messages to the Admin. The Admin can manually check the status of the user and, if needed, block him.
Likewise, if a player makes multiple deposits in a day, it is also an unhealthy pattern. Say, for example, if a player makes more than 10 deposits within 24 hours, OptiKPI will automatically alert the Admin about the situation. The Admin can look into the issue and take remedial actions.
Big Win alerts
Whenever a huge amount is involved, like when a player wins a big win or spends big on a game— OptiKPI will automatically detect and send Alerts to the Admin.
How to Prevent Friendly Fraud
To combat Friendly fraud, casinos are implementing measures such as identity verification and payment fraud prevention tools to reduce the risk of friendly fraud.
More tips To prevent account takeover fraud
Online gambling sites should use effective authentication measures, such as multi-factor authentication, to verify the identity of users. They should also have strict policies in place to monitor suspicious activities and take prompt action when needed. Additionally, users should always use strong passwords and be wary of any suspicious emails or messages they receive to safeguard them from gaming fraudsters.
OptiKPI - The Best Online Gaming Fraud Prevention Software
OptiKPI is an industry-leading marketing automation solution tailored specifically for the online gambling industry. It provides powerful tools to tackle fraudsters and optimize marketing campaigns while providing an intuitive user experience.
With OptiKPI, you can quickly monitor and evaluate the performance of your campaigns, helping you to identify and eliminate gaming fraudster activities & scammers to maximize returns. It is the perfect choice for any online gambling business looking to stay ahead of the competition.
It is packed with the ability of AI and behavioral targeting to significantly increase the success of your gaming company. You can communicate with players in real-time thanks to our personalized automation features. We work with you to attract customers' attention by narrowing players' attention to what truly motivates them.
Following are some benefits of integrating OptiKPI into your marketing system:
- Improved productivity for the marketing and retention team
- Fraud Detection
- Elimination of monotonous manual tasks
- Increased revenue and company expansion
- Real-time automation
- Multiple channels of communication are housed together
- Compliance marketing (built-in email templates for different jurisdictions)
- Personalized promotions
- Responsible Gaming
- Round-the-clock customer service
In conclusion, online gaming fraud is a major concern for gaming companies as it can cause serious damage to their reputation and financial losses. OptiKPI is the perfect choice for any online gaming operator looking to stay ahead of the competition.
It provides powerful tools to tackle fraudsters and optimize marketing campaigns with improved productivity for the marketing and retention team, fraud/ suspicious activity detection, and eliminating monotonous manual tasks.
With OptiKPI, you can monitor and evaluate the performance of your campaigns, helping you to identify and eliminate fraud and maximize returns.