Online Gambling Fraud: How It Works & How to Stop It

Companies often encounter fraud. This puts not only their reputation at risk, but also user loyalty.

Companies often encounter fraud. This puts not only their reputation at risk, but also user loyalty.

Since this topic is important for all companies doing business on the Internet, and especially for online casinos, today we will look at what such fraud looks like, what types of it exist and how to prevent it.

What Is Gambling Fraud?

Fraud occurs in all areas of modern life. And in every area it is unacceptable. In online gambling, fraud includes any illegal actions that offenders perform in order to obtain money, bonuses, data or even accounts from a company’s website.

Since land-based casinos have sometimes been linked to money laundering in the past, this area is now attracting a lot of scammers. This happens not only because of the former “glory” of the casino, but also because such a business is very profitable and accessible to violators. Fraudsters may use special programs or look for flaws in the site’s software. This is done in order to steal user data in order to withdraw winnings, sometimes scammers seek something more, such as data from the site itself, in order to steal money directly from the casino.

Since online casinos attract many players with their large selection of games, many offenders flock there. However, if you use reliable software and a casino games aggregator, for example from NuxGame, with which you can expand the game library of your casino. Thanks to this, you can reduce the risk that an attack on your site will be successful. Owners and operators should be vigilant about their security and choose the best methods to protect their sites.

Types of Gambling Fraud

There are several types of online gambling scams. Each of them causes not only material damage to the company, but also harms its reputation.

Multiple accounts

This type of fraud is quite common and well-known among scammers. Since this scheme is the starting point for subsequent types of fraud.

Attackers create not just a few accounts, but rather dozens if not hundreds of accounts in order to change the course of the game in their favor. For this purpose, fake accounts are used, the data for which is purchased or generated by scammers. This type is both a separate fraud and a stratum for other, more complex and dangerous actions. However, at this stage it is quite easy to track fraud and if you do it in time, you can avoid a full-fledged attack on your servers.

Collection of bonuses

Since many online casinos offer sign-up bonuses to their new players, scammers have found a way to take advantage of this. Thanks to the large number of accounts, attackers can collect these bonuses in huge quantities. They can then be used to win unfairly.

Such offers are an excellent way to expand the audience of players, as well as to increase their loyalty. However, if your site is attacked by scammers, you may suffer large losses due to giving away too many bonuses. This can cause a surge in activity, and also, scammers with a large number of accounts can win large sums using bonuses in such an illegal way.


Since scammers may be targeting players’ money. To do this, they steal data from cards linked to player accounts and use them for deposits and so on. When the real owner of the card notices what happened, he will feel something is wrong. Immediately after this, he will request a refund from his bank or payment system. If everything works out, the return will be made at the expense of the company. This may seem like a small thing. But what if there are thousands of such users? And hundreds of dollars were taken from their accounts? Then this will be a very large and significant loss for the company.

But for transfers to casinos, it is best to use cryptocurrency. It is famous for its safety. Thanks to this, the player takes less risk than in the case of a credit card. But for companies, this is the best way to protect themselves. For example, you can get bitcoin casino for sale using NuxGame. This service is known for its quality work and responsible approach to working with its clients.

How to stop this?

Fraud scares many people, but this does not mean that it cannot be stopped and there is no way to fight it. You should start from the registration stage. Users must provide documents confirming their identity, such as passports, ID cards or driver’s licenses. Users must also confirm their age, because gambling has age restrictions.

Also, during registration, you can use additional checks that can prevent fraud at the very beginning:


This method turned out to be one of the most effective against scammers. Most modern devices have fingerprinting capabilities, so this won’t be a problem, but will help keep both users and companies safe. This will also prevent scammers from creating multiple accounts from one device.

Digital footprint analysis

Since ordinary users most often have one phone number and one or two email addresses, companies can legally request and use information about what this data is linked to. In this way, you can track the user’s digital footprint and determine whether he is a real person or not.

You can also check IP addresses. This data can show where the user is, how he uses the Internet and what data he searches for.

Password Analysis

This method also works great against attackers. Since scammers with a large number of accounts most often do not create complex and unique passwords, you can find them by analyzing the password hash.