How To Make Online Gambling Fraud Work For You

By:

Posted: July 21, 2023

Updated: July 21, 2023

Sometimes playing at either the land-based or online casino can seem like a lot of hard and expensive work to receive very little back in return. But imagine if you knew how to scam the casinos. Armed with the right knowledge, it might be possible for you to come out on top for a change. Even though the adage says that "the casino always wins," with the right fraud, maybe it's just not true.

Sometimes playing at either a land-based or online casino can seem like a lot of hard and expensive work to receive very little back in return. But imagine if you knew how to scam the casinos. Armed with the right knowledge, it might be possible for you to come out on top for a change. Even though the adage says that “the casino always wins,” with the right fraud, maybe it’s just not true.

King Billy Casino Welcome Bonus

151% up to €500 + 51 Bonus Spins

Claim your Exclusive Bonus for GamingZion readers at King Billy Casino. Your first deposit will be matched 151% up to €500. On top of this match bonus, there are 51 bonus spins up for grabs. 18+. T&Cs apply.

Essential Guide To Casino Scams And Online Gambling Fraud 

Gambling establishments always seem to have the upper hand. But occasionally, clever schemes emerge that challenge their advantage. From legendary heists depicted in movies like Ocean’s 11 to modern-day tactics, people have always been intrigued by the idea of outsmarting casinos. That’s where online gambling fraud comes into the equation.

However, it’s crucial to understand the workings of these real-world schemes and their potential repercussions. The gambling industry in the United States recorded a staggering revenue of over $53 billion in 2021, experiencing a significant 21% surge from the previous year.

Nevertheless, amidst this prosperity, casinos also suffer losses due to fraudsters and individuals exploiting the system. Consequently, casinos like King Billy Casino have a vested interest in combatting gambling fraud both within their premises and in the realm of online gambling. This Gamingzion.com article explores the most prevalent types of casino scams and online gambling fraud. We also look at the tactics employed by fraudsters.

Online Gambling Fraud

The world of online casinos presents both convenience and challenges.

online gambling fraud
Picture Source: Pxfuel

After all, it offers ample opportunities for gaming while at the same time increasing the likelihood of cheating and deception. Here are some of the most common forms of online gambling fraud.

Chargeback Abuse

Engaging in online gambling can lead to unintended overspending and losses. In a tactic known as chargeback abuse, some disgruntled users attempt friendly or first-party fraud by filing chargebacks through their banks. They falsely dispute legitimate transactions to recover their losses. Unfortunately, when these chargebacks are granted, the online gambling establishment not only loses the original revenue.

But also incurs additional processing fees and penalties. Dealing with such disputes can be an uphill battle. This is due to the sensitive nature of online gambling. Also the prevalence of unauthorized gambling transactions.

Online Gambling Fraud – Collusion Among Players

In this deceptive scheme, a group of players engage in location spoofing. This gives the illusion that they are in different places, while in reality, they are together. Subsequently, they participate in regular online casino games. Things like poker, and exploit their physical proximity to manipulate the game’s outcome in their favour. Other legitimate players have no knowledge of this collusion.

online gambling fraud
Picture Source: Pxfuel

As a result, they are unknowingly cheated out of their rightful winnings. To effectively prevent such collusion, gaming apps can employ spoof-resistant location intelligence. Instead of relying solely on GPS or IP addresses, this technology combines device intelligence, GPS, WiFi signals, and Bluetooth signals to accurately pinpoint players’ locations.

Card Not Present (CNP) Fraud

CNP fraud occurs when criminals illicitly obtain someone’s credit card information. They then use it for transactions that do not require a physical card. Such as online gambling or phone-based purchases. In the context of online gambling, CNP fraud typically involves fraudsters using stolen credit card details to gamble. At the same time, this also constitutes identity theft. This type of fraud can lead to various damages.

Firstly, the victim whose credit card information was stolen may struggle to recover their funds. If the cardholder manages to file a chargeback, the gambling app bears the burden of fraudulent transactions. Moreover, excessive chargebacks within a specific timeframe could result in the app facing penalties. In extreme cases, there’s even the termination of their contract by the payment processing provider to consider.

King Billy Casino Welcome Bonus

151% up to €500 + 51 Bonus Spins

Claim your Exclusive Bonus for GamingZion readers at King Billy Casino. Your first deposit will be matched 151% up to €500. On top of this match bonus, there are 51 bonus spins up for grabs. 18+. T&Cs apply.

Multiple Account Online Gambling Fraud

According to online gambling news in the UK, multiple account fraud entails fraudsters creating numerous accounts to exploit bonuses. They also gain fraudulent winnings and deceive other players. These fraudulent accounts may be established on a single device. But more commonly, fraudsters operate a whole network of devices known as a “fraud farm.” One form of multiple account fraud is known as bonus abuse.

Here fraudsters create multiple gambling accounts or use multiple devices to take advantage of new user promotions like free credits or other incentives. While online casino apps use these promotions to attract new users, the fraudster’s exploitation of multiple accounts leads to financial losses for the app. They cannot be compensated by legitimate new customers.

Land-Based Casino Fraud

In-person brick-and-mortar casinos are among the most heavily monitored establishments in any industry due to the significant risk of cheating. To mitigate this, they invest in numerous security cameras both on their gaming floors and other areas to effectively detect cheaters and resolve disputes.

online gambling fraud
Picture Source: Wallpaper Flare

Although defrauding a physical casino is challenging, it is not entirely impossible. Below are some common types of land-based casino fraud cases

Inside Man Schemes

In this form of gambling fraud, players employ an insider, either a man or a woman, to secretly manipulate the game in their favour. For example, in the baccarat false shuffle scam, a dishonest dealer collaborates with players to record the card order before placing them in the shoe. Ordinarily, the dealer would shuffle the cards properly, but in this scam, they only pretend to do so. Subsequently, the dealer discreetly communicates to players where to place their bets before each deal. It’s perfectly possible the same thing could happen at an internet casino in the form of online gambling fraud. 

By finding a willing dealer to collude with them, both the other players and the casino are at risk of losing money to deceitful winnings. Some individuals working for casinos might also have access to proprietary casino software. Like the one that governs the payout frequency of digital slot machines. Armed with this knowledge, they could potentially manipulate machines or odds to their advantage.

King Billy Casino Welcome Bonus

151% up to €500 + 51 Bonus Spins

Claim your Exclusive Bonus for GamingZion readers at King Billy Casino. Your first deposit will be matched 151% up to €500. On top of this match bonus, there are 51 bonus spins up for grabs. 18+. T&Cs apply.

Camouflaged Camera Scams

In the realm of gambling, having knowledge of the cards can be a game-changer. Camouflaged camera scams involve a player or a hired accomplice strategically placing a hidden camera to secretly capture the dealer’s hand. In some instances, the dealer may also be complicit in the deception. They may then deliberately shuffle the cards slowly or in an obvious manner to benefit the camera’s recording. The individual with the concealed camera then finds discreet ways to communicate the card order to other players at the table. This is often done using hand signals or Bluetooth earpieces.

Even a single successful casino cheating incident can result in significant financial losses. Such sums can amount to thousands or even hundreds of thousands of dollars. At the same time, it’ll also tarnish the legitimate players’ gaming experience. This highlights the utmost importance for casinos to closely monitor all games and maintain lists of suspected casino cheaters.

Preventing Gambling Fraud

Preventing casino fraud is a crucial aspect of upholding a safe, fair, and enjoyable gaming environment. Brick-and-mortar casinos utilize security cameras and advanced facial recognition technology. They use this to closely observe all gameplay and identify known fraudsters.

online gambling fraud
Picture Source: Pexels

They also establish standardized procedures for actions such as shuffling, opening new decks, and dealing to ensure fairness. Additionally, casinos maintain a list of banned individuals suspected of cheating to prevent repeat offences. Other online casinos in the UK like King Billy Casino must exercise due diligence when accepting new players.

This involves conducting ID checks to verify age and location. Also employing device intelligence, and implementing spoof-resistant location intelligence to assess the risk level of potential new players with fraudulent intentions. By implementing effective online gambling fraud prevention measures, casinos can safeguard the user experience. And just as importantly, maintain the financial stability of their business.

Apps For The Win

Moreover, gaming app users need to be vigilant for potential warning signs of online gambling fraud, such as instances where users spend unusually high amounts shortly after creating an account. Or accounts displaying significant deviations from their typical behaviour. Or even indications of location spoofing, and multiple accounts accessing the platform from the same device or location.

To safeguard themselves and their accounts, players should regularly monitor their credit card activity for any suspicious transactions. As a given, they should always implement multi-factor authentication on their gaming apps. Furthermore, they should promptly report any suspected player collusion to the relevant app or website.

While gambling inherently carries a certain level of risk, the situation becomes more problematic when fraudsters manipulate the system with online gambling fraud. After all, they’re introducing additional risks for both players and casinos that they never consented to. Implementing spoof-resistant location identity and adhering to other fraud prevention best practices are crucial to maintaining the gaming industry’s usual standard of player experience.

Click here to try the live casino at King Billy Casino

0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments
0
Would love your thoughts, please comment.x
()
x