U.S. Online Gambling Operators See High Profile Gambler Fraud



US Online Gambling Fraud Attempts Denied 16% This year, Trans Union Told online poker report today. It’s a good sign, but these rates are still higher than those of Europe, TransUnion Declan Raines noted at RPO.

Raines, the American game manager for Chicago– headquartered in TransUnion, said such fraud attempts in the United States typically take the form of consumer abuse of online casino bonuses and online sportsbooks. They also include the dumping of online poker chips by players, he said.

Raines put online gambling fraud in the United States into perspective as his company published new research yesterday. In 2022 Digital Fraud Trend Analysis, TransUnion has seen an increase in alleged digital fraud attempts against legal gambling operators around the world 50.1% from the first quarter of 2021 to the first quarter of 2022. As in the United States, the predominant form of fraud is promotion abuse.

Meanwhile, the research found that suspected global online fraud attempts against all industries decreased by 22.6% during this same period of time. In the US it’s down 23.1%.

European operators have more experience with fraud

Shai CohenSenior Vice President of Global Fraud Solutions at TransUnion, said in yesterday’s announcement:

“Sophisticated fraudsters pressure test industries that have strengthened fraud prevention measures and, as a result, turn to new industries if efforts are thwarted. This is exactly what we have seen recently as fraudsters look for new opportunities or points of vulnerability. It’s paramount that during this downturn, businesses focus on optimizing the customer experience for the right customers.

Raines said the US online gambling market is just this new industry.

Fraud attempts against US online gambling operators are high right now, Raines said. That’s because industry professionals here are just learning, he said.

European online gambling operators are more experienced and therefore more effective in spotting and preventing such attempts. That’s because their markets are mature, Raines said. RPO.

He added that TransUnion only works with legal online gambling operators. These statistics therefore do not include fraud by or against illegal offshore sites.

Declan Raines, Head of US Gaming for TransUnion, speaks to the OPR about online gambling fraud in the US

Declan Raines, Head of US Games, TransUnion

Comparison of Online Gambling Fraud in the United States

Today, TransUnion provided RPO with U.S. online fraud rates versus global rates in Q1 2022 versus Q1 2021.

The year-over-year metric breaks down as follows, TransUnion said RPO:

“Globally, suspected online fraud attempts decreased by 22.6%.

“However, suspected online fraud attempts in the global gaming industry increased by 50.1%

“In the United States, the total number of suspected online fraud attempts decreased by 23.12%, with suspected online fraud attempts in the US gambling industry decreasing by 16.18%.”

TransUnion works to prevent online gambling fraud

As a consumer credit reporting agency, TransUnion works with businesses and consumers to try to prevent fraud.

Among the services it provides to online gambling operators is the identification of “suspicious users, devices and transactions”.

As a result, TransUnion discovers that one of the forms of attempted fraud against US online gambling operators comes from members of do-not-lists who use different emails to try to bet.

However, the overall number of fraud attempts for US online casinos, online poker and online sports betting are about equal, Raines said.

In other words, fraud attempts are not higher in online poker, in terms of prevalence in the online gambling vertical in the United States, Raines said. This is true even though all suffer from bonus abuse attempts, while only online poker is a target for chip dumping, he said.

What is chip dumping and why is it a problem?

Chip dumping, as Raines explains, is when two players agree that one bettor will lose chips to the other on purpose.

Although this is a common tactic in money laundering, it can also be a way to transfer a bonus to a conspirator. (Editor’s note: It can also be used by players acting as a team in a poker tournament. In this case, the victims of the fraud are the other players participating in the tournament, not the site.)

Gibraltar-based 888poker said chip dumpers will have their funds confiscated and will be permanently banned.

The online poker operator, also present in the United States in partnership with WSOP, added that innocent gamers sometimes get caught up in the crackdown on chip dumping:

“Naturally, the smartest chip dumpers try to cover up their actions. For starters, they try to make their dumps appear like legitimate hands. (No ten calls, for example.) Additionally, while trying to throw chips at a specific account, they take care to also send large amounts of chips in the direction of random players at the table. (To make it look like they are spitting money at everyone.) Unfortunately, when these chip dumpers end up getting caught, some of the random recipients of their dumps may also be involved in the dumping scam chips and see their accounts reported by the site.


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