Carefully selected news for the smart bettor
Iovation, a global fraud solution provider, released its 2020 iGaming report. The report is important because of Iovation’s dominant position in the gambling ecosystem and the number of operators using its services. With the world’s largest database of reputation insights and cryptographically secure multi-factor authentication methods in its arsenal, iovation analyses tens of millions of digital transactions each day.
In a past report, iovation named the top five types of fraud in online gambling in the following order:
- Bonus abuse
- Chip dumping
- Chargeback abuse
- Credit card fraud
In its fourth year, the 2020 report took into account more than four billion online gambling transactions, screened for fraud indicators over the past 15 years. Among the findings, bonus abuse was once again reconfirmed as the number one reported fraud by iovation’s iGaming customers for the third year in a row, rising a tremendous 72% from the previous year.
Iovation estimates there are somewhere around 2,000 online gambling sites all competing for customers just like any other business. In order to attract and maintain customers, many online operators are offering different types of incentives including sign-up bonuses, referral bonuses, bonuses to frequent players or to attract a player back to the site. This is where abuse sneaks in to exploit bonuses in various scales.
Another key trend in the report was the rise in self-exclusion and this is not a surprise judging from the ongoing multilevel campaign for the protection of vulnerable clients. iovation received over 363,000 reports of player self-exclusion in 2019, this is a 63% increase compared to 2018.
Credit card fraud continues to climb
The report highlights that credit card fraud continues to climb, as iovation’s iGaming customers reported a 37% growth in credit card fraud from 2018 to 2019. It is a fact, while operators actively look to stop credit card fraud, consumers expect reduced transaction reviews and unnecessary step-up authentication with their credit card transactions.
Another finding of the report is the Majority of Transactions going Mobile. 79% of all iGaming transactions came from mobile phones and tablets in 2019, and this is an increase of 13% over 2018. We have seen key figures of the industry wondering when this trend is going to stop, we believe it will top at around 95% in the next couple of years.
Fraud solution providers
Fraud solution providers are boomings these last years, receiving lavish contracts from their clients. We think it is interesting to mention the type of services these providers are offering to their clients. Their fraud prevention and detection capabilities extend the operator’s protection to fraud patterns they are most concerned about. For example, they can inform for the following:
- If a particular device has been used to access multiple accounts within a particular time period.
- When many devices have been used to access a single account.
- If the device has a history of specific types of fraudulent activity.
- When the device is linked to other devices or accounts associated with the fraud.
- Whether the device has violated specific policies that you have defined such as geolocation, chat abuse, spending limits, or cheating.