Published
OnlineLegal & RegulatoryIndustry

Study: 71% rise in bonus abuse reported by online gambling firms

A study by Ravelin, a fraud detection and payment acceptance specialist, concludes that 71% of online gambling merchants have reported an increase in promotion abuse over the past year.

ravelin generic logo gi web image
Listen To Article

After surveying 1,700 fraud and payment professionals based at online gambling platforms, the study found that 62% of all types of online merchants had suffered an increase in fraud over the past 12 months. These operators detailed significant impacts on revenue as a result of online fraud.

Promotional offers are a common tactic employed by online gambling platforms to attract customers; such offers include loyalty rewards, sign-up bonuses and free bets.

Savvy players make use of multiple accounts and different IP addresses to exploit these promotions, finding loopholes that result in heavy financial losses for the companies targeted.

Another form of fraud that has seen an increase is online payment fraud, with 67% of merchants reporting a rise in payment details being taken from customer accounts. The high traffic of the websites involved can make it difficult for companies to clamp down on fraudulent activity.

Martin Sweeney, CEO at Ravelin, said: “Gambling websites often have high transaction volume, with players making a lot of payments regularly which can make it difficult to detect fraudsters card testing or even catch individual fraudulent purchases. Bolstering your fraud detection with an external machine learning platform is crucial to meet the growing complexity and variety of tactics used by fraudsters.”

The Ravelin study went on to detail the steps being taken by these merchants to tackle the issue, with 90% predicting an increase in budget and 85% employing more fraud prevention team members.

Industry News Sponsor
Premium+ Connections
Premium
 
Premium
 
Premium
 
 
Premium
 
Premium
 
Premium
 
Premium
 
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium Connections
Executive Profiles
Interblock
Caesars Entertainment
Pragmatic Play
Flutter Entertainment

Global Gaming Awards London: Who will win Executive of the year 2023?

Gambling Insider takes a look at the nominations list for 20...

CEO Special: Flutter International CEO Dan Taylor returning to roots

Flutter International CEO Dan Taylor meets Louis Thompsett t...

CEO Special: Light & Wonder Gaming CEO Siobhan Lane - optimising superpowers

Siobhan Lane, Light & Wonder Gaming CEO, speaks to Gambling...

CEO Special: Hoiana Resorts' Steve Wolstenholme – the travel man

Hoiana President & CEO Steve Wolstenholme talks to Gambling...

Read Magazine