Online Gambling Fraud Surges 250% in Q1 2024: Bonus Abuse in Focus

The online gambling industry is grappling with a surge in fraud, according to the Q1 2024 Global Identity Fraud Report released by AU10TIX, a global leader in identity verification and management technology. The report, as reported by SBC Americas, reveals a 250% increase in fraudulent incidents during the first three months of 2024 compared to the same period last year.

The payments sector bore the brunt of these fraudulent activities, accounting for 62% of all incidents (39% in 2023).

Within the gambling sector itself, 50% of fraud cases were categorized as “bonus abuse”.

Bonus abuse refers to the practice of creating multiple accounts to exploit promo offers aimed at new players (commonly known as “bonus hunting”).

Analysts at AU10TIX attribute the surge in fraud partly to the allure of online gambling among younger audiences. However, they remain optimistic that the tide will turn. As more operators adopt comprehensive KYC (Know Your Customer) solutions, the rate of such abuses is expected to decline.

The AU10TIX report also underscores the effectiveness of selfie-based identity verification. During client identification procedures, the most prevalent attack method involved forging document numbers. This type of fraud saw an alarming 18% increase in Q1 2024 compared to the same period last year.

Despite the surge, AU10TIX analysts anticipate a decrease in fraudulent activities within the gambling industry. Their recommendation? Operators worldwide should embrace self-regulation measures to thwart fraud attacks.

Previously, we reported on Sumsub’s Q1 2024 fraud report in the iGaming sector, which similarly highlighted bonus hunting as one of the most popular attack methods.