Online Gambling Fraud and Its Prevention: A Comprehensive Guide


Online gambling is a booming industry, with the global market projected to reach $117 billion by 2025. However, the rapid growth of this sector has attracted various forms of fraudulent activities. In this article, we will delve into the world of online gambling, the risks involved, and how to protect yourself and your business from falling victim to fraud. We will also discuss various tools and solutions, including Irbis KYC API and email and phone validators, that can help in fraud prevention.

The Financial Landscape of Online Gambling

The online gambling market grew by 13.2% last year, and it’s not showing any signs of slowing down. However, with great financial prospects come great risks. Nearly 600,000 fraud cases were reported to the FTC in the first quarter of 2021 alone, and these numbers have remained high throughout 2022.

Types of Online Gambling Fraud

1. Chargebacks

Chargebacks are a significant issue for many operators. This type of fraud often occurs when a customer disputes a legitimate charge, claiming it was fraudulent. This is also known as “friendly fraud.”

2. Account Takeover Fraud

In this case, a fraudster hacks into a player’s account and places bets using their identity and assets. This type of fraud can be detected using device intelligence and multi-factor authentication.

3. Transaction Fraud

This includes fraudulent deposits, withdrawals, and other high-risk transactions. Automated fraud prevention systems can flag suspicious transactions, saving operators countless hours of labor.

The Dangers of Online Gambling Fraud

Falling victim to fraud doesn’t just mean financial loss. The proceedings from these crimes can fund much larger operations, including human trafficking and terrorist activities. Fraud groups are specializing and targeting large organizations to extract valuable identity data.

Preventing Online Gambling Fraud


Know Your Customer (KYC) is crucial in the online gambling industry. Irbis KYC API can help in verifying the identity of users, thereby reducing the risk of fraud.

Email and Phone Validator

Validating the email and phone numbers of users can add an extra layer of security. It ensures that the user is legitimate and can be contacted if necessary.

Device Fingerprinting and Geolocation

These methods can help in identifying any suspicious activity related to account takeovers and can be critical in bolstering KYC procedures.


Online gambling fraud is a growing concern, but with the right tools and strategies, it can be prevented. Operators need to be vigilant and proactive in implementing fraud prevention measures to protect both their business and their customers.

Questions to Ponder

  1. How can businesses balance user experience with stringent security measures?
  2. What role does community data play in preventing credit card fraud in online gambling?
  3. Will the introduction of multi-factor authentication become a standard in online gambling platforms?


By understanding the types of fraud and implementing preventive measures, you can enjoy the thrills of online gambling while staying secure.

Remember: Knowledge is power, but it comes with great responsibility.

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