New Reports Suggests Massive Increase in Online Gaming Fraud
AU10TIX, a provider of identity verification services, has released its Q1 2024 Global Identity Fraud Report, revealing a significant surge in fraudulent activities within the online gaming market.
The report indicates a dramatic 250% increase in fraud instances in the first quarter of 2024 compared to the same period in 2023. A major contributor to this rise is payment fraud, which now accounts for 62% of all fraud cases, a substantial increase from the 39% it constituted in Q1 2023.
A closer examination of the types of fraud prevalent in the online gaming sector shows that half of the fraud cases involved the exploitation of promotional deals offered by gambling operators.
Fraudsters created multiple accounts to take advantage of these promotional offers.
Additionally, document number fraud experienced an 18% increase in Q1 2024, while face picture fraud saw a 28% rise during the same period. Attempts at selfie fraud, where fraudsters use selfies to deceive identity verification systems, remained steady.
The report also highlights the effectiveness of using selfies for identity verification as a measure to combat document number fraud. This method is seen as a reliable tool in enhancing security against such fraudulent attempts.
AU10TIX’s CEO, Dan Yerushalmi, commented on the escalating threat posed by organized criminal groups who are increasingly leveraging artificial intelligence for large-scale, coordinated identity fraud. In response to these sophisticated threats, AU10TIX employs advanced machine learning technology and fortified defense mechanisms.
The company collaborates with over 60 tier-1 companies to detect and thwart sophisticated fraud that conventional identity verification platforms often miss. Yerushalmi emphasized AU10TIX’s commitment to safeguarding clients and developing innovative, future-proof solutions to tackle emerging challenges in the industry.
The findings of the report underscore the necessity for advanced technological solutions in the face of growing fraud. An example of industry response is EvenBet Gaming, which has enhanced its anti-fraud capabilities to combat poker bots. This move signals a broader industry trend toward strengthening defenses against increasingly sophisticated fraudulent activities.
The comprehensive overview provided by the Q1 2024 Global Identity Fraud Report highlights the pressing need for robust, technologically advanced measures to address the rising tide of fraud in the online gaming market.
- Other news categories:
- SlotsUp's news
