The convenience and excitement of gambling online has been the driving force behind the phenomenal growth of the online gambling industry. But as more people turn to online poker, roulette, blackjack, sportsbooks and other casino games, cyber criminals are becoming more sophisticated in finding ways to defraud legitimate players and the gambling sites they play on. As a result, gambling sites are forced to deal with a wide spectrum of Internet crimes and other in-game abuses that cost the industry hundreds of millions of dollars in fraud losses each year. Despite efforts to thwart criminal activities such as fraudulent deposits, chargebacks, cheating, collusion and money laundering, today's sophisticated fraud rings pose a greater threat to online gambling providers than ever before.
w h i t e P a p e r
Internet Gambling sites:
Expose Fraud Rings
and Stop Repeat Offenders
with Device Reputation
A White Paper by iovationConfident Casinos: How to stop fraud before it starts
The convenience and excitement of gambling online has been the driving force behind the phenomenal growth of the online gambling industry. But as more people turn to online poker, roulette, blackjack, sportsbooks and other casino games, cyber criminals are becoming more sophisticated in finding ways to defraud legitimate players and the gambling sites they play on. As a result, gambling sites are forced to deal with a wide spectrum of Internet crimes and other in-game abuses that cost the industry hundreds of millions of dollars in fraud losses each year. Despite efforts to thwart criminal activities such as fraudulent deposits, chargebacks, cheating, collusion and money laundering, today's sophisticated fraud rings pose a greater threat to online gambling providers than ever before.
With more personal information accessible over the Internet, identity-based fraud management systems alone do not provide a comprehensive solution for effectively detecting and preventing online fraud. Fraudsters, using the Internet to buy, sell and trade personal and financial information, have built thriving illegal networks to share data and techniques on how to defraud online gambling businesses. In order to reduce fraud loss that directly impacts their bottom line, online gambling sites must adapt more effective solutions that look at information independent of what data is supplied by players. A device fingerprinting solution-such as iovation ReputationManagerT-provides unique insight into the computers being used to connect to online gambling sites, exposing a computer's reputation and uncovering hidden device-to-account relationships that other fraud tools often miss.
Device fingerprinting helps identify fraudsters at the source so online gambling sites can shut down repeat offenders and keep them out. Working in conjunction with existing fraud detection techniques, a device fingerprinting solution provides online gambling sites with a comprehensive fraud management solution. This white paper will help you understand what new and innovative techniques can be used to combat online fraud and abuse, and how online casinos can realize a true return on investment by reducing losses from fraud exposure and increasing operational efficiency within the fraud detection process.
Internet Gambling Sites: Expose fraud rings and stop repeat offenders with device reputation page 2Organized Fraud: A Growing Threat to Online Casinos
The online gambling industry has experienced phenomenal growth. According to H2 Gambling Capital research firm, online casinos generated $22.6 billion in global revenues in 2008, up from $17.6 in 2006. Unfortunately, while the online gambling industry grows, so does organized fraud; cyber criminals are working hard to uncover and sell people's personal information-such as name, address, social security number and credit card details-and share techniques on how to defraud online gambling sites. As a result, the online gambling industry stands to lose hundreds of millions of dollars annually to fraud exposure if effective anti-fraud strategies aren't put in place.
Fraudsters perpetrate a wide range of fraud and in-game social abuses including credit card fraud, fraudulent deposits, chargebacks, cheating and collusion, chip dumping, promotion and bonus abuse, email spam, money laundering and account takeover. Despite gambling sites' efforts to detect suspicious players, Internet-savvy criminals have learned how to mask their true identity by changing account information to circumvent conventional methods of fraud detection such as IP address and geo-location validation, third-party credit verification, and other tools that monitor and analyze player activities such as winning percentage, hands played, and who they've won and lost to (see Figure 1).
Hot Card Lists Transaction Risk Scoring Google Address CheckSeparate ID Checks / Profiling Data Monitor / Analyze Player ActivitiesIP Address / Geo-location Validation Third-Party Credit Verification
Figure 1: With more personal information accessible over the Internet, fraudsters are getting better at defeating conventional methods of fraud detection.
Closing the Revolving Door on Rep... [download for more]
