Illicit activities in iGaming on the rise: common methods for manipulation and deceit
In the world of online identity fraud, it's a wild west, and fraudsters are pulling off all sorts of schemes to dodge the system. According to Sumsub, a company in the business of online identity verification, the most popular scams include bonus abuse, deceptive affiliate practices, illegal refund claims, money laundering, and account takeovers.
Much of this fraud relies on manipulating money withdrawal mechanisms and user images. Thanks to AI, even non-professionals can create images that fool systems into thinking they're the real deal.
When it comes to countries where these shenanigans are most prevalent, Bangladesh, Indonesia, South Korea, and Bosnia and Herzegovina take the top spots.
Now, let's dive a bit deeper into these fraud tactics. Bonus abuse often involves the use of synthetic identities – a mix of real and fake data like SSNs and addresses – to swindle sign-up bonuses and referral programs. These schemes are becoming more automated, with bots and scripts registering countless accounts to snag promo offers while evading fraud detection through IP spoofing.
Affiliate fraud comes in many forms, such as cookie stuffing – hijacking affiliate links or faking clicks to pocket commissions – and multi-accounting – generating fake referrals using stolen or fake identities across platforms.
Illegal refunds can be obtained through chargeback fraud – claiming legitimate transactions as unauthorized and often using phony payment details – and friendly fraud – exploiting refund policies by falsely reporting issues with non-delivery or products.
Money laundering has been modified with the help of FinTech, using digital wallets and peer-to-peer platforms to confuse the trail of funds, usually coupled with synthetic IDs. Cross-border transactions are also a favorite method for moving illicit funds across jurisdictions with lenient regulations.
Account takeovers (ATOs) are becoming increasingly sophisticated, thanks to AI-powered phishing scams that mimic trusted entities and automation techniques like credential stuffing and using 3D-printed masks to bypass facial recognition systems.
To fight back, it's essential to stay informed, ensure strong security practices, and collaborate with authorities to tackle this ever-evolving threat landscape.
- Technology, such as AI, allows non-professionals to create fraudulent images, enhancing the manipulation of money withdrawal mechanisms and user identities in the online casino-and-gambling world.
- In the unfortunate realm of online identity fraud, bonus abuse frequently employs synthetic identities, a blend of real and fake data like SSNs and addresses, to deceitfully claim sign-up bonuses and referral programs.
- Fraudsters utilize various mechanisms to obtain illegal refunds, including chargeback fraud, friendly fraud, and exploiting refund policies by falsely reporting issues with non-delivery or products.
- Money laundering in the digital age is facilitated through the use of FinTech, with digital wallets, peer-to-peer platforms, and synthetic IDs confounding the funds' trail, often coupled with cross-border transactions.
