The online gaming and gambling industry has shown great promise and resilience. Economic headwinds tend not to impact levels of gambling significantly, according to insights from the LexisNexis® Risk Solutions Cybercrime Report 2022. Global gaming and gambling transaction volumes seen in LexisNexis® Digital Identity Network® have remained stable.
Although attacks on new account creations have increased by only 5% globally year-over-year, the desktop channel has the highest risk profile for gaming and gambling compared to all industries, with almost one-in-five account creations being an attack, according to the LexisNexis® Risk Solutions Cybercrime Report 2022. Attacks on mobile apps have also increased by over 100% globally, year-over-year.
The global gambling industry is growing and it is expected to reach $674.7 billion in 2025. In a competitive market where customers have an increasingly varied array of options, gaming and gambling operators need to streamline their onboarding processes to improve customer experience and customer acquisition, and at the same time tackle pervasive fraud attacks at account opening.
Bonus abuse, also known as promotional abuse, where fraudsters attempt to exploit offers multiple times, persistently erodes revenue potential. Promotional schemes offering bonuses, risk-free bets or free tokens are designed to acquire customers but are also targeted by fraudsters. Fraudsters aim to take advantage of these promotions by creating multiple accounts with fake or stolen identities to claim a bonus offer.
Some operators struggle to keep out players who violate company policies. These players create multiple accounts in order to place multiple bets with the same operator under different identities. Players who have previously been blocked may attempt to reengage in play by opening new accounts with stolen, spoofed or borrowed credentials. The experience of legitimate players can deteriorate when policy violators evade block lists.
Building a robust, proactive fraud prevention infrastructure starts by understanding the fraud risks across customers’ journeys and ensuring the journeys are both safe and convenient to navigate.
Download the Gaming and Gambling Solution Brief to learn about other fraud patterns and business challenges in the gaming and gambling industry.
Fraud can have serious consequences for gaming and gambling operators that go beyond financial losses, including loss of customers, legal issues due to compliance violations and reputational damage. Download the Gaming and Gambling Interactive Customer Journey Flow to learn more about the underlying factors that increase fraud risk at each stage of the customer journey, and get concrete insights that can help you make more confident risk decisions.
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