Online Gambling's Explosive Growth Accompanied By Increase In Fraud
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Fraudsters are targeting the online gambling industry. The US gaming industry saw 262% increase in fraud attempts from Q2 2020 to Q1 2021. New York has already shattered US online sports betting records since its launch on Jan 8. The top three legal online casino states generated more than $1 billion each in gross gaming revenue in 2021, but none of them cleared the bar in 2020.
Digital marketing expenditures grew 36% to more than $240 billion in 2021. Online gambling's growth is accompanied by increase in fraud. in the channel grew more than 23.5% from 2018 to 2021, even though offline marketing budgets declined nearly 6%.
The rate of suspected digital fraud attempts rose 16.5% globally between Q2 2021 and Q1 2020. In the US, the percentage of digital Fraud attempts increased at a similar rate (17.1%) during the same time period.
In 2019, 42% of iGaming fraud reports in the US fell into the credit card category. In 2021, the only online gambling figures were global, with policy/license agreement violations responsible for the 36.2% rise in fraud. Online gambling operators are doing a better job of combatting fraud attempts than the gaming sector, which saw a 262% increase in reported fraud tries during Q2 2021.
Online gaming is experiencing an explosive growth. TransUnion classifies gaming providers as: Online sports betting providers, platform providers and gaming operators.
By the end of 2023, the iGaming industry will generate a global revenue rate of $92.9 billion. Major markets such as the US, Germany and Spain legalized online gambling. Fraudsters are attracted to high signup bonuses and attractive offers. Sports betting and casinos are most targeted. Collusion is a common tactic.
Online gambling has seen an increase in fraud. The company partners only with legitimate operators.
Gambling is legalized in more and more states in the US. This means more opportunities for fraudsters. The perpetrators are a mix of domestic criminals and international crime rings.
In 2020, 49 million Americans were affected with an estimated $56 billion in costs. The primary fraud method in gambling is organized bonus abuse. Operators need to run extensive background checks on their signups and be aware of connections between users.
Online gambling industry should be proactive about affordability checks before consumer protection lawsuits come down the stream.
Fraudsters are targeting the US. The identity details of US consumers are easy to get. It's essential to verify if the user accesses your service from the state they claim to be in or spoof their location.
Some of the most cutting edge or grey gambling sites target regions where it is grey where licensing is required. They are also first to be non-domiciled and target the US customer base.
Online Poker Report informs readers about the increase in online gambling fraud. Online gambling operators and online casinos need to be one step ahead of fraud to build trust with their players.
