A study by Ravelin, specialists in fraud detection and payment acceptance, concludes that 71% of online game merchants reported an increase in promotion abuse over the past year.
After surveying 1,700 fraud and payment professionals based on online gambling platforms, the study found that 62% of all types of online merchants had experienced an increase in fraud in the past 12 months. . These operators detailed the significant revenue impacts resulting from online fraud.
Promotional offers are a common tactic used by online gambling platforms to attract customers; these offers include loyalty rewards, sign-up bonuses and free bets.
Sophisticated gamers use multiple accounts and different IP addresses to exploit these promotions, finding loopholes that lead to heavy financial losses for the targeted companies.
Another form of fraud that has seen an increase is online payment fraud, with 67% of merchants reporting an increase in payment information extracted from customer accounts. The high traffic of the websites involved can make it difficult for companies to combat fraudulent activity.
Martin Sweeney, CEO of Ravelin, said: “Gambling websites often have a high transaction volume, with players regularly making many payments, which can make it difficult to detect fraudulent card tests or even detection of individual fraudulent purchases. Strengthening your fraud detection with an external machine learning platform is crucial to address the increasing complexity and variety of tactics used by fraudsters.
The Ravelin study went on to detail the actions taken by these merchants to address the issue, with 90% planning to increase the budget and 85% employing more fraud prevention team members.