Proven Techniques to Combat Fraud at Online Gambling Sites

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Fraud and Online Gambling

Unfortunately, for as long as gambling has existed, there have been fraudsters looking to exploit the industry. This problem has only grown since the rise of online gambling and it has significant repercussions for the industry. Fraud cannot only lead to operators running into trouble with regulators, but also, higher cases of fraud taints the reputation of an online gambling merchant.

While gambling is a risky trade for both players and merchants, online gambling sites continue to surge in number. The existence of fraud negatively affects the thriving online gambling business. For one, the increasing number of complaints from customers is a costly repercussion of scams. Essentially, failing to solve fraud at an online gambling site will inevitably lead to the site’s downfall.

As such, here are some of the scams you should watch out for when operating an online gambling site.

Common Kinds of Fraud at Online Gambling Sites

There is no positive to fraud at online gambling sites. Loss of revenue, customer complaints, and bad reputation are some of the downsides caused by online fraud.

Fraud Through Multiple Accounts

This is one of the most common types of fraud that negatively affects online gambling sites. Here, scammers create multiple fake accounts with false information and credentials. After which, these fraudsters use these accounts to sign up for coupons, bonuses, and other offers on online sites.

If left unchecked, these multiple accounts will leave your site at a loss of resources and revenue. As such, it is imperative to have practices in place that will spot multiple accounts. Even on a small scale, just one person creating a three or four accounts, this type of fraud can be extremely damaging.

Credit Cards Fraud

Credit card theft is a huge problem, and thieves often target online gambling sites with stolen cards as a quick way of fully exploiting them. The thieves use the stolen cards to make large deposits. They will then use the funds on relatively ‘safe’ bets, in order to be able to cash out as much of the stolen money as possible.

Bonus Scam

Bonuses and coupons are effective ways to attract more customers and players. However, on the other hand, they can also attract possible threats from scammers. Oftentimes, fraudsters use multiple fake accounts to take advantage of promos, welcome bonuses, and coupons.

How to Combat Fraud at Online Gambling Sites

As the online gambling site industry shows no signs of slowing down, cases of fraud and scams also increase in number. Therefore, all operators have to put considerable resources into combating fraud. However, there are several techniques that have proven effective against the most common types of fraud.

Know Your Customer

Following a good KYC (Know Your Customer) practice is a key factor in preventing the risk of fraud on online gambling sites. The basic idea is ensure that players truly are who they clam to be.

One of the key steps to do this is to force users to undergo identity verification upon registration. Here, you might need to verify the users’ name, address, age, work, name, and other similar details. Most commonly, operators ask for proof of ID in the form of a passport or driving license, as well as proof of address, in the form of a utility bill that is no more than three months old.

Check Emails

Generally, emails are connected to a user’s social media account. As such, this makes it easier to track and detect fake accounts as early as possible. What you can do is an email analysis of the user’s account. In this way, you can monitor the data they enter and do a thorough background check of their credentials and personal information. See if the information matches the email address and the user’s social media accounts.


While it is not a common practice, some online gambling operators will require users to sign in using their fingerprints. This makes it far easier to track suspicious usage and monitor if the same person is using that account. Device fingerprinting allows you to track and flag account takeovers and eventually, prevent scammers from hacking your site.


Cross-referencing mainly refers to the use of third-party solutions in tracking down scammers to combat fraud in online gambling sites. Some of these cross-referencing solutions include verifying ID, monitoring upon logging in or signing up, and checking deposits and withdrawals from the user’s bank account.

One needs to look for the right third-party solution in tracking down these scammers. In this way, you build a safe and secure platform where both you and your customers are satisfied, which ultimately will ensure that your online gaming business remains afloat.


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