There are numerous reasons why online betting has become so popular in the U.S. Legislation, cultural approval, and easy access are some of them. So many people now own mobile phones and have internet access. The problem is that with the growth of online gambling comes more risk of fraud.
What is online betting fraud?
Online betting fraud refers to any illegal activity that negatively affects legitimate players. Fraudsters may fake websites, take over accounts, and perform other illegal actions. It isn’t limited to a specific platform or game – it can happen in any form of online gambling including casino games and sports gambling. This is the reason players should always use licensed and regulated casinos. These casinos have to abide by rules and regulations for player protection.
Why are online gambling sites vulnerable?
One of the main reasons why gambling sites are vulnerable is because of the large amount of money they handle. That kind of money attracts cyber criminals. There is also a lack of in-person interactivity and more anonymity in online casinos. Fraudsters have more chances of using stolen credit cards for their own benefit. They may also fix the outcome of games. All the winning strategies in the world won’t help if games are fixed.
Cyber criminals will also leverage software vulnerabilities in online systems to perpetrate scams. Using social engineering tactics is another popular way to get access to sensitive customer data. This is why gambling sites need strong security measures to protect them against cyber fraud.
Account takeover fraud
Account takeover happens when a bad actor gains access to a player’s account using stolen credentials. They then use the account for their own benefit. Players can take several steps to ensure online payment safety. They can use strong passwords, multi-factor authentication, and regularly monitor account activity.
Bonus abuse
Fraudsters may open multiple accounts so they can claim signup bonuses. They may use fake information to register for an account and claim a bonus. To combat this type of fraud, casinos may limit bonuses to one per IP address or household.
Credit card fraud
Cyber criminals will use stolen credit cards to make fraudulent transactions on gambling sites. Players should always report activity that could be fraudulent straight away to financial institutions.
Bot fraud
A betting bot is able to assess the odds in a game and expedite wagering on sporting events. More advanced bots can even infiltrate poker games and control tables to determine outcomes. Most casinos have ways to recognize such bots.