As gambling becomes more popular, cybercriminals are more active than ever. They find their way into online gambling scenarios where they hack, cheat and steal to take advantage of the house and other players. Online casino sites use various measures to detect and prevent fraud.
Online gambling fraud
Online gambling fraud occurs when a cybercriminal manipulates or exploits an internet gambling site for monetary gain. Fraudsters may bend or break the rules so they can increase their winnings, and they will find many potential victims on gambling sites.
This is why gamblers need to play at reputable online casinos that emphasize providing players with a secure online playing environment.
Credit card fraud
Cybercriminals can easily get their hands on stolen credit card credentials on the dark web. They then use them to top off their accounts and use illegitimate funds to make real wins. Make sure to cancel your credit card right away if it is stolen.
When cardholders find out they are victims of fraud, they can demand a chargeback as a way to get an unauthorized transaction reversed. Friendly or chargeback fraud occurs when a legitimate customer files a chargeback under false pretenses. They claim the card was used without their permission so they can get their money back.
Multiple account fraud
Controlling multiple user accounts is one of the cybercrime trends that gives cybercriminals the opportunity to engage in a number of schemes. They may set up multiple accounts from different devices, IP addresses or email addresses to take advantage of bonus offers such as free money for a first bet, discounts or coupons. They will quickly withdraw funds and abandon accounts when they have served their purpose.
Chip dumping is a common method of fraud in online poker where a player intentionally loses chips to another player. The aim is to get maximum profit from a table by cheating. It can alter the trust players place in the house.
Commonly used security techniques
There are various security techniques online gambling sites use to prevent cybercrime.
Strong passwords and two-factor authentication: Casinos may require players to use strong passwords, but they can be vulnerable. Two-factor authentication (2FA) requires players to enter a password and then confirm their identity via a code or token delivered by text message or phone. A phone being hacked and SIM swapping can still circumvent 2FA. Virtually any security measure can be circumvented, but 2FA can be a deterrent.
Identity verifications services: These services look at a user’s email address, geolocation, IP address, and other identifying data. This helps online casinos identify who is using the site.
Fraud prevention software: This software automatically scores risks and puts more verification requirements on suspicious accounts without affecting the experience of trusted users.
Data encryption: Many online casinos use 256-bit encryption to safeguard data. SSL encryption prevents third parties from accessing sensitive information. Players should verify that a site uses SSL encryption by looking for a padlock icon in the address bar.