Although it is often said that “crime does not pay”, online fraud is big business.
According to recent industry reports, online fraud is at an all time high. Indeed, a recent industry report compiled by auditing and accounting firm PwC found that around two-thirds of technology, media and telecom companies surveyed have been victims of some form of fraud.
For businesses conducting their business activities online, these levels of fraud can be a serious source of business disruption. As such, cybercrime and fraud top the list of the most significant threats facing businesses today.
Unfortunately, the increase in cybercrime and fraud seems to be a global trend. In the UK, for example, victims lost an estimated £1.3 billion in 2021 alone, representing a 27% increase in the number of incidents.
Given this growing threat, organizations must devote more and more resources to developing and deploying robust fraud prevention and detection mechanisms.
This includes adopting new digital payment systems that are more secure and less susceptible to attack, deploying tiered cyber fraud assessment programs, and employing real-time risk assessment mechanisms.
Online casinos are one of the sectors that are at the forefront of these developments. And given the volumes of sensitive personal data they manage, there is an urgent need to stay abreast of all new and emerging cyber fraud threats.
Given this, what are some of the features that online casinos and other gambling platforms use to protect you from hackers and cybercriminals? Keep reading to find out!
Most Common Types of Online Casino Fraud
Before outlining some of the techniques, tactics and technologies that online casinos have deployed in their fight against online fraud, we must first highlight the different types of online fraud in this space.
Here are some of the most common types of online gambling scams:
- Multi-account fraud: Scammers will create multiple accounts using fake information. These accounts are used to take advantage of bonus programs or to improve their chances in games.
- Stolen credit cards: The scammers will use the stolen credit card information to top up their accounts and then withdraw the money.
- Abuse of telephone recharge: Fraudsters will trick unsuspecting victims into charging their casino accounts for them. The payment will go directly to the scammer’s account and can then be withdrawn.
One of the most important ways for online casinos to combat fraud is to ensure that they have proper customer identification procedures in place. This means ensuring that login and registration procedures are robust and can prevent unauthorized access.
Using verification or two-factor authentication is one of the most popular methods used by online casinos. This greatly increases the difficulty of accessing the account for fraudsters and hackers hoping to gain access.
Identity verification systems look for user information such as IP address, email address and location, which is cross-checked to ensure that the person trying to gain access is the authorized person. Online casinos use advanced fraud protection software that ensures this information is valid and genuine before allowing login access.
Biometric authentication is also popular, especially with mobile apps. Fingerprints are particularly useful because unlike geolocation or IP address, they cannot be spoofed using a VPN.
The industry has also combated the prevalence of fraud by maintaining licensing requirements.
Online casinos and gaming platforms must go through licensing processes to provide services to customers. And while these processes can often be time-consuming and expensive to follow, especially for new online casinos just getting started, they are ultimately necessary.
As part of licensing processes, online casinos must demonstrate to regulators that they are handling customer funds appropriately, have comprehensive anti-money laundering processes in place, and that they provide an appropriate level of protection to client accounts. This goes a long way in ensuring that customer funds and personal information are safe from scammers and hackers.
As you will no doubt have noticed, online casinos offer a wide range of payment options to customers. This includes credit and debit cards, bank transfers, prepaid cards, e-wallets (also known as e-wallets), and even cryptocurrency payments. While more choice is good for customers, these options aren’t much use if they don’t provide an adequate level of security for customers.
That said, one of the ways online casinos can provide an increased level of protection against scammers and hackers is by only using payment methods that offer the highest levels of security. Cryptocurrencies have become particularly popular in this regard, as they offer a highly secure way to make payments online.
Reliable customer service
One of the less obvious ways online casinos prevent hackers, scammers and online criminals from gaining unauthorized access to user accounts is to ensure they have excellent customer service. .
A reliable customer support team is the backbone of any online casino operation. And not only can they be trained to answer all customer questions effectively and efficiently, but they can also be trained in the latest anti-fraud techniques. The ability to easily get in touch with a member of the customer support team is essential to ensure that potential fraud is detected as early as possible. It is important that the customer support team is trained to a high standard and is always available to answer customer questions.
Alexia is the author of Research Snipers and covers all tech news including Google, Apple, Android, Xiaomi, Huawei, Samsung News, and more.