>> January 2025 >> As fraud escalates across iGaming, security firms turn to AI and biometric technology to counter sophisticated scams like deepfakes and bonus abuse, shaping the industry's anti-fraud landscape for the future
Code: CR. M03/LCJ 2025 | Report: Jan 2025 | Word Count: 35,000
As the iGaming industry grows, so does its fraud problem, surging 73% from 2022 to November 2024. Advanced scams, including deepfakes, account manipulation, and bonus abuse, have evolved in parallel with technological advances, compelling the industry to adopt equally sophisticated defenses. From biometric mismatches to multi-account bonuses, online gambling platforms face an increasingly intricate fraud landscape that is reshaping the sector’s approach to security and forcing gambling operators to hire top external security.
Historically, iGaming fraud was often associated with emerging markets, but the trend is now shifting. South Korea, for example, recently became the first developed country to enter the top five fraud-prone iGaming markets. Tactics such as fake ID and deepfake usage have made it easy for fraudsters to bypass basic verification protocols, with about 80% of these scams happening during biometric verification. This surge in deepfake technology, where imposters create realistic but false ID documents, has pushed the industry toward robust AI-powered verification to combat deepfakes and prevent widespread identity theft.
In particular, bonus abuse is one of the most pervasive scams in the industry, accounting for nearly 66% of online casino fraud. By opening multiple accounts or utilizing fake identities, fraudsters exploit promotional offers like welcome bonuses and free spins, costing the industry an estimated $1.5 billion annually. Tactics such as “gapping” - cycling through multiple platforms to exploit new-user rewards - and “chip dumping,” where winnings are funneled to other accounts, make it increasingly difficult to detect and prevent fraud.
Affiliate fraud is another evolving threat, where affiliates use bots to generate fake traffic or unauthorised clicks, skewing performance metrics and draining marketing budgets. Techniques like “cookie stuffing” and “click fraud” artificially inflate engagement, costing operators millions in false conversion payouts while damaging data accuracy and reputation.
As operators confront these challenges, AI and machine learning have become essential for real-time fraud detection. These technologies enable platforms to scan for behavioral anomalies and authenticate users through advanced biometric systems. Furthermore, emerging tools like device fingerprinting and multi-factor authentication (MFA) help identify risky activity by cross-referencing device history, geolocation, and behavioral patterns.
Ultimately, the future of iGaming lies in a proactive, tech-forward approach that leverages AI and Machine Learning to stay one step ahead of fraud. With evolving threats, only a holistic security strategy from the leading iGaming anti-fraud specialists — backed by constant monitoring and data-driven insights - can safeguard the industry and protect user trust.