The online casino industry may seem like it is insulated from cheats and fraud, but you would be mistaken to think that. In 2024 and going forward, casinos are dealing with issues such as bonus abuse, affiliate fraud, illegitimate chargebacks, money laundering, account takeovers, and deepfake scams.
Suffice it to say that it is like the Wild West out there.
To better understand this new landscape, we turned to Online Casino Rank experts and researchers behind useful lists and reviews such as the best online casinos in Germany, to learn how AI is redefining fraud prevention in this industry.
What Are These Issues
For some of our dear readers, the problems I mentioned are new, so let’s elaborate on each briefly.
- Bonus Abuse– This is when fraudsters exploit promotional offers by creating many accounts to claim bonuses repeatedly. the process involves using stolen identities and personal information.
- Affiliate Fraud– This is when affiliate programs are manipulated to create illegitimate commissions. Fraudsters may use bots or fake traffic to simulate real users.
- Illegitimate Chargebacks– Players make deposits, gamble, and then request chargebacks from their banks, claiming they did not authorize a transaction.
- Money Laundering– Criminals have realized they can deposit large sums, gamble a little bit, and withdraw the funds to make the money appear legitimate.
- Account Takeovers– Hackers can take over a player’s account through phishing or remote-code execution by other means, to steal funds and exploit bonuses.
- Deepfake scams– The terrifying rise of AI has brought with it a horde of scammers who can get ready to go and sound convincing at the press of a button. They can use fake videos or audio to deceive casino staff or automated systems.
So, how is AI stepping in to help? Let’s explore
Real-Time Monitoring
AI’s selling point is its ability to monitor large data sets and identify patterns and mistakes that we cannot see with our human eyes. As Aiden Murphy, a renowned online reviewer, puts it, “AI is like an eagle patched on top of a tree, scrutinizing every move its prey makes.”
AI systems constantly monitor every action, be it a click, a player’s behavior, or a unique pattern of play. If any suspicious activity is detected, like a player’s behavior suddenly changes, the system flags it and alerts the security team.
AI-Powered KYC
According to Dylan Thomas, a Blackjack enthusiast, AI can help speed up and streamline user registration using advanced algorithms and biometric data. AI-powered KYC also means that casinos can make sure they’re not on the wrong side of Anti-money Laundering (AML) bodies.
Pattern Recognition
AI does not just offer real-time monitoring; it’s also a master of pattern recognition. This can allow casinos to detect unusual patterns and determine whether the player is a bot or a genuine human.
Biometric Authentication
Casinos can use AI-powered authentication, including fingerprint scanning and facial identification, to help verify the identity of a player. The technology can be leveraged to ensure that only authorized users have access to accounts, to reduce takeovers and identity theft.
Predictive Analytics
Beyond pattern recognition, AI can help casino operators build predictive models to forecast the possibility of fraudulent activity to occur, says Keisha Bailey, an expert on online casino bonuses.
Predictive AI models analyze historical data and player behavior to determine patterns that indicate fraud, like account manipulation or bonus abuse.
In summary
AI is changing the way casinos combat fraud, stop cheaters, and maintain the integrity of their operations. However, the future of AI in casinos does not end at fraud detection and prevention; it is still evolving technologically as regulations rise up to create guardrails.
It is safe to say that AI is set to revolutionize gaming as a whole. Watch this space!
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