Stopping Online Gambling Fraud

- Presented by chargebackgurus.com - A guide to, preventing online gambling fraud. Anyone who engages in online gambling understands that there's. a significant element of risk involved. Playing games of chance and letting the odds determine your fate, always carry some danger that you'll end up losing. But the rules you're playing. are supposed to be fair. Fraudsters upend this delicate balance by forcing themselves. into gambling scenarios where they can cheat, pack,. and steal to take advantage of both the house and other players. How is fraud impacting the. world of online gambling? And what can merchants do to. get this problem under control? Online credit card fraud is a huge problem for every merchant in e-commerce, from the biggest and most. family friendly retailers, to small, niche orientated, internet gaming sites. The total global cost of cybercrime may exceed $6 trillion a year by 2021, and a significant portion. of that financial burden falls directly on the merchants who sell goods and, services over the internet. The costs of e-commerce fraud. come back to bite merchants in multiple different ways. The most direct cost is the, revenue loss to online fraud, but it doesn't have to stop there. Merchants also suffer damage, to their customer relationships as victims wonder fairly or not, why the establishments they trusted didn't do more to protect their money. Merchants who process. fraudulent transactions also get hit with added fees, and higher processing rates by their acquirers and payment processors. All of this takes place before chargebanks rear their ugly heads. How does fraud affect online gambling? Online gambling is both. increasingly popular and highly restricted. It's one of the fastest growing markets in e-commerce with a, CAGR of just under 12%, but most states don't allow online gambling. The legal and moral peripheries.

that gambling inhabits in the eyes of many has. long made it appealing to fraudsters who use casinos for money laundering scams. Fraudsters are opportunist by nature, and will always gravitate. towards vulnerabilities and gray areas. The average person may, find it predictable to hear that a gambling site. was targeted for fraud, but this is unfair to the merchant who may have been trying their hardest to run a safe and reputable site. Fraud undermines confidence in an industry that already has challenges with public perception and regulation. It's important to note as well, the specific negative consequences of dealing with a successful fraud attack. Most forms of online fraud involve the use of a compromised credit card belonging to an innocent third party. When the card holder finds out they've been victimized by fraud, they can demand the chargeback to get their unauthorized transaction reversed. Their credit card networks monitor chargeback activity and may require merchants. with excessive fraud and chargeback rates. to take concrete steps to bring their numbers down. Merchants who are unable to do so may have their accounts terminated, and be forced to contract with. high risk payment processors. As online gambling merchants. are often categorized high risk by default, a chargeback problem can quickly limit their option for affordability and reliability accepting credit card payments. What are the most widely seen types of online gambling fraud? It's always good to be wary of fraud that takes unexpected forms. Fraudsters know the extent of the resources deployed to stop them, and will often try novel approaches to get around these defenses. Certain fraud schemes, however, are seen time and time again. One, multiple accounts/account. takeover fraud. One of the best ways to, give yourself an advantage in online gambling is to. control multiple user accounts. Fraudsters may create multiple accounts for this purpose, but it works even better. when they can take over legitimate customer accounts by stealing or guessing their passwords. Once the fraudster controls. a wide array of accounts, various scams are at their disposal. Chip dumping, a form of fraud where one player colludes with another by deliberately losing to them. Gnoming, the practice of. owning multiple accounts and placing multiple bets with the same gambling site. Gnoming is often used to. take advantage of bonuses and promotional offers,. enabling a single user to accrue benefits many times over. Two, credit card fraud. It is extremely common to see fraudsters using stolen credit, cards at gambling sites. If they can get their card to work, they can quickly and easily cash out, allowing them to launder.

cash from the reams of stolen payment credentials that are readily available on the dark web. Three, chargeback fraud. Also known as friendly fraud, this is when a legitimate, customer files a chargeback under false pretenses. to get their money back. It is often seen in online gambling where someone who has. just lost a lot of money can simply call up their bank, claim that the card was used without their permission, and get reimbursed for, their gambling losses. How can merchants prevent online gambling fraud? The best way to protect, against online fraud is to know who your customers are, and what accounts they're accessing. This is easier said than done when fraudsters are working hard to circumvent your defenses, but many merchants still leave tested and proven methods on the table. Identifying verification services that look at user's IP. address, geo location, email address, device fingerprints and other identifying data. along with strong passwords and two factor authentication requirements can ensure that you know, who's really using your site. These services can be. bolstered with high risk scoring technologies that put additional scrutiny and verification requirements. on suspicious accounts, without adding friction to the experiences of known and trusted users. Conclusion, ultimately, there's. no getting around the fact that online gambling sites are especially attractive to fraudsters. That means that online gambling merchants often have no choice, but to uphold higher than, average standards of security and identity verification in order to reach the same levels of protection that the typical merchant enjoys. When online fraud comes back to haunt you in the form of chargebacks, it's important to choose, your response carefully. While you can't fight a true fraud chargeback, a vigorous defense is the best remedy against friendly chargeback fraud. Don't leave the outcome of these cases up to a twist of fate. With compelling evidence,. a strong cover letter, and the facts on your side, you can fight and beat these chargebacks. - To learn more, visit chargebackgurus.com. (upbeat music).