iGaming Fraud: Catch the Cheats Before They Cash Out

Not all players seek entertainment in online casinos. Some aim to exploit the system. If operators are unprepared, they can impact profits. A significant challenge for platform owners is bonus abuse. Ozric Vondervelden, CEO and Co-founder of Greco, states that this deceptive tactic costs the sphere more than most people think.

Today’s iGaming fraud is sophisticated, rapid, and challenging to detect. Operators now have to deal with collusive gaming, automated bots, and advanced exploitation of promotional mechanics. With the right technology and an effective fraud prevention strategy, it is possible to identify risks in real time and prevent abuse before it leads to significant losses. This is where 2WinPower can help you.

Indications of iGaming Scam

To combat fraud, awareness of its manifestations is crucial. In the digital sector, threats continuously change. Currently, arbitrage and bonus abuse are prevalent issues. Unscrupulous punters and, alarmingly, some dishonest brands discover methods to manipulate the system, interfere with game engines, and fraudulently secure profits. According to Greco, the answer lies in the usage of intelligent reporting tools and automation to identify questionable activities before they establish a pattern.

A major concern is multi-accounting, where a player registers multiple times to exploit bonus offers. This dishonest practice poses serious risks, so operators should prioritise authentic punters with single accounts who genuinely deposit and engage. The reduction of straightforward sign-ups may temporarily decrease new registrations, as it effectively eliminates fraudulent accounts.

Additionally, taxes, regulations, and the misuse of bonuses diminish a brand’s profitability. To maintain their edge, platforms roll out significant promotions with banners for “second-chance bets” or “big deposit rewards." However, these offers seldom provide the complete value they advertise.

Punters should always read the fine print and watch out for:

• above-average winning caps;
• high wagering limits on restricted games;
• confusing or harsh rollover conditions.

The bottom line is that both participants and owners need to stay sharp. Fraud might be getting cleverer, but so is the prevention.

European and US Approaches for Tackling iGaming Fraud

The EU region is now a playground for seasoned gambling brands that are well-versed in risk management. One of the easiest methods they use is winning caps. These limits keep stakes low and effectively curb bonus exploitation to ensure actual users remain engaged.

Mr. Vondervelden also highlights A/B testing. Imagine you offer a €10 bonus with conditions and a €5 cash drop with no strings attached. Both need only a €1 deposit. The result is that players prefer the more appealing option, regardless of the fine print. This approach helps measure real user responses before a broader rollout.

The US initially followed a comparable trajectory, yet now, circumstances are changing. The market is getting saturated, welcome offers are becoming stricter, and promotional campaigns are being limited. More operators are increasingly adopting a data-driven strategy and carefully analysing user behaviours with the associated risks they pose.

Comparison of the two regions in terms of fraud prevention:

1. Europe has many market options, so brands focus more on keeping players engaged.
2. The US is starting to show signs of saturation, with tons of promos and products packed into one space.
3. Europe leans heavily on wagering conditions, and those rules are getting stricter by the month.
4. The US is dialling down promo value, often tailoring deals to brand-new users only.
5. Both regions are leaning into analytics, but Europe is ahead with structured reward systems based on player behaviour.

In the end, various regions require distinct strategies. However, the objective is to prevent abuse, enhance authentic engagement, and safeguard profits.

The Unified Nature of Value and Fraud

When it comes to bonus abuse, it is not just about shady tactics. It is often about how people respond to winning and losing. Emotions play a big role. However, if you want to really fight fraud, you have to go deeper. That means a comprehensive perception of user value, not just their win/loss streaks.

Ozric Vondervelden states that behavioural analytics is extremely beneficial in this situation. Rather than focusing on a single suspicious group, it is wiser to analyse the entire audience. Valuable insights reveal which users truly deserve your attention and which ones are subtly exhausting your promotions.

Value applies universally. It enables you to refine promotional campaigns, segment your audience into meaningful categories, and determine the appropriate size of bonuses based on user type, betting habits, and volatility preferences.

Greco’s BI tools are specifically designed for this purpose. They evaluate each punter’s true value (determined by their potential to win or lose) to make more precise decisions that safeguard profits and enhance targeting.

Value analytics can also be helpful in other directions:

• estimate affiliate profitability to see who is actually bringing in quality traffic;
• build long-term forecasts so you can stay ahead of market changes;
• keep punters motivated with rewards based on their actual worth.

Value recognition is crucial. A focus solely on superficial data will cause you to overlook scammers who regularly siphon off value while contributing little. Smart operators broaden their perspective and assess the complete picture to enhance fraud detection efforts.

The Next Step for Bonuses

In a few years, gambling incentives are likely to become much more intelligent. AI is infiltrating every aspect of business, and the iGaming sector is poised to follow. This shift means that reward systems are set for a significant technological enhancement.

Before long, rather than simply providing generic free spins or deposit matches, operators are expected to utilise AI models to create personalised bonuses. These tools will customise offers for each punter and take into account their game choices and their playing styles, login frequency, and responses to particular messages.

Before the industry advances, a significant challenge remains. Many operators still lack sufficient, reliable data to make accurate predictions. In the absence of appropriate numbers and metrics, determining the optimal value for each user involves more speculation than scientific analysis.

The Main Things about Fraud Psychology

Understanding cheating and illegal actions in iGaming involves identifying dishonest individuals and the interplay of value, behaviour, and loopholes. Users' views on wins, losses, and risk are also frequently linked to bonus abuse. The adoption of smarter systems and player-centric tools is essential for progress.

Key aspects about the fraud understanding:

• Bonus abuse is less about trickery and more about pattern exploitation, often with multiple accounts and fake data.
• The European market is focused on segmentation, and the US leans more into analytics.
• The link between value and fraud is huge since players who consistently “win” from promos are not always loyal participants.
• Behavioural analytics helps operators gain more insight than one-time data points.
• Fraud prevention is shifting from reaction to prediction as AI and BI tools are slowly becoming must-haves.