The iGaming field is considered to be one of the most fraud-prone industries in terms of affiliate fraud. According to the industry reports, iGaming fraud rose to 64% year over year between 2022 and 2024. 83% of operators noted that it might even get worse by 2026 if not acted upon.
This is because operators need to expand their markets, and affiliates drive massive volumes of traffic to fulfil this need. Hence, fraudsters now see iGaming as one of the most profitable digital environments to exploit.
This iGaming fraud surge now requires focused action. For that, it is important to know how to detect and prevent it.
Before delving into the details of it, it is necessary to understand what it is in the first place.
What is iGaming Fraud?
It is any form of deception within online gambling and betting platforms where affiliates or players themselves manipulate systems, exploit bonuses, or use stolen identities for their own financial gain.
Unlike common misuses, these frauds are considered to be systematic, coordinated, and automated.
Some of the common fraud activities include:
Affiliate Fraud
iGaming affiliate fraud is a major concern for the coming years in the field. This type of fraud is conducted by the publishers themselves, where their aim is to manipulate traffic by sending fake clicks and sign-ups. Additionally, they also bring in low-intent users and fraudulent player actions to trigger CPA payouts. This makes affiliate fraud the gateway to other types of fraud as well.
Bonus Abuse
Multiple accounts are created repeatedly to claim welcome offers or promotions. For example, a fraudster may use a VPN to imitate users from various countries to claim bonuses.
Account takeovers (ATO)
In this type of fraud, the wrongdoer gains unauthorised access to a genuine user’s online gambling account details to steal funds, credits and sensitive information. This is done through methods like phishing, credential stuffing or through malware activities.
Chip Dumping and Collusion
Chip dumping is an iGaming, as well as an offline casino fraud tactic, where the player deliberately loses their credits or chips to their opponent. The opponent here could be either someone colluding with the dumper, or a single fraudster could be doing this by making multiple accounts.
Signals of iGaming Fraud
All unusual activities cannot necessarily be fraud. However, a consistent pattern of these activities can raise concerns. Some of the key warnings that one must be aware of, to detect fraud are –
- Rapid activities like quick registrations and immediate bonus claims, which are followed by rapid cash outs.
- Multiple accounts created from the same IP, device or with similar personal details.
- Logins from different geographical locations within minutes suggest bot activity or that credentials are being shared.
- A high amount of bets placed in a short period of time is also a typical trait of automated activities.
- Abnormal winning streaks that do not match expected odds.
- Unusual payment methods or repeat chargebacks are often associated with fraudulent behaviour.
- Mismatch between user details and payment method details.
The Cost of Manually Detecting Fraud
The above-mentioned red flags of iGaming fraud cannot possibly be detected manually. However, many operators still rely on manual checks, spreadsheets, and fragmented tools to assess fraud risks. While this could have worked years ago, today’s scenario is different. It is complex and fast.
Manual processes of detection can lead to the following problems –
- High operational costs
- Delayed detection, allowing fraud to scale
- Increased human error
- Poor-quality data which affects decision-making
Additionally, fraudsters and affiliates now use AI to automate activities like synthetic identity fraud and executing attacks. This makes it harder for the traditional systems to sustain and detect fraud.
Delays in fraud detection, or not being able to detect fraud at all, can lead to financial losses. Bonus abuse, for example, can cost 15% of the business’s total revenue.
It is important to move forward with the fast-paced environment of iGaming, even when it comes to detecting fraud.
Hence, using advanced iGaming fraud prevention and detection platforms becomes necessary.
How Does Affnook Fight iGaming Fraud?
Affnook is one such platform that is not just an iGaming affiliate marketing software but also acts as a shield to stop fraud in its tracks.
The platform is built specially for iGaming businesses and offers in-depth fraud detection tools that protect operators, affiliates, and players from suspicious fraudulent activities.
Some of it’s anti-fraud capabilities include –
- Providing immediate fraud alerts against potential fraud
- Automatically rejecting repeat offenders and known fraudulent activities by blacklisting the IP address
- Blocking high-risk affiliates who tend to bring suspicious traffic
- Ensuring traffic comes only from trusted devices through device verification
- Preventing fraudsters from hiding their identity through proxy and VPN tracking
- Revealing unusual affiliate patterns, inconsistent user behaviour and traffic irregularities with advanced tracking.
- Tailoring fraud controls to the market and risk level with the help of customizable rules and settings.
Conclusion
The rise of complex, high-speed fraud techniques makes iGaming fraud one of the biggest threats that operators face. From bonus abuse and payment manipulation to sophisticated iGaming affiliate fraud, the risks of it are widespread and constantly evolving.
The only effective solution for this is going for a technology-driven approach to iGaming fraud prevention. One that monitors traffic in real time, blocks fraudulent patterns, and provides operators with full transparency into what’s happening behind the scenes.
