While online processes have proven to be convenient over the years, they also come encumbered with many risks. Now and then, you come across people who have suffered the short end of the stick and had things go haywire. Maybe they got hacked and lost some money, or had their sites taken down by criminals or some other sad instances. Each time such an incident happens, people become more aware of the risks that lie in online processes. It is especially so where there are payments in play as criminals always want a chance at these.
Taking part in online gambling means that you will have to make do with online payments. And that comes with its fair share of risks, among them fraud. Many cybercriminals have set their targets on unsuspecting gamblers and operators in the hope of making a kill. And that is understandable, given that the gambling industry is worth hundreds of billions of Euros. This value is only set to rise, paving the way for the entry of more criminals.
Operators are the most likely targets for fraudulent activities, as criminals want to target accounts from a single point. It allows them to make away with a huge sum of cash, as opposed to targeting an individual. Which fraudulent activities are operators likely to encounter when taking part in online payments? Well, here are some key examples:
The first is where criminals create more than one account, known as multiple account fraud. In this instance, they create hundreds of accounts using fake details, granting them more than one point of access. They can use these accounts to take advantage of any rewards the operator could be offering to new customers. Take an example of a site that offers ten Euros to each new customer.
If someone creates hundreds of accounts and takes advantage of this offer, the site could end up suffering a loss. The attackers can also attack by use of gnoming, where the other accounts lose in favor of one. That way, the criminal walks away with a lump sum. This strategy also works in poker games such as multiple accounts join one table, thereby cheating the system. The other accounts work in losing in favor of one account, which is likely to end up the winner. This practice is known as chip dumping.
The second option involves attacking payment systems. Take an example of where a fraudster uses a stolen credit card in that they win real money using stolen cash. The criminal can also request a chargeback after topping up their account, which is at the operator's expense. And finally, the criminals can top up their accounts by phone through calling burner phone holders. Operators also have to watch out for any suspect transactions. Often, people resort to using online gaming sites to launder money.
The spotting and prevention of fraudulent activities should be a priority for any site that wishes to protect its interests and its consumers. The operator’s activities should gear towards understanding who its clients are and verifying their identities. The first step during registration should be to identify the ID before looking into the consumer's age.
It also helps to find information on the device used to ensure that the device has not been used in suspect activities. An analysis of the email used helps a great deal. In most cases, you find that the email has been used to create social media accounts. It becomes easier to tell if the information provided is accurate. Operators should also look into IP addresses as these can reveal internet usage, location, and the likelihood of the user engaging in fraud.
Other likely problems include inefficiencies in cross-border transactions, multi-currency issues, card data insecurity, and technical integration.
Monitoring activities on the site is not an easy task, and it requires the use of sophisticated tools in the analysis and flagging of data. But without these measures, the site remains exposed to criminals who can shut it down after a few moves. Also, consumers will be less likely to invest in a website that does not have the necessary protection measures.
The consumers also have to be careful when entering their details on any sites. They should verify the security of the sites and avoid using third party sites when making any payments. It also helps to update their software to reduce the loopholes through which criminals can access their accounts. Where they come across websites that do not have the required safety protocols, they should avoid sharing personal data on such platforms. Safety always comes down to how much work one puts into protecting what is theirs. As much as operators and software providers bear a huge responsibility in safety matters, consumers also play an important role in this. Stay safe!