Online Gambling Fraud Spikes on Black Friday Weekend

Online Gambling Fraud Spikes on Black Friday Weekend

Data from the mobile payments and identity verification company, Jumio, revealed that online gambling fraud increased in Europe between Black Friday and Cyber Monday, more than any other sector it analyzed.

The other sectors examined by Jumio included financial services, insurance, sharing economy services and travel. Combined, these sectors had an overall 25% year over year reduction in detectable fraud.

Comparatively, fraudulent activity in the online gambling sector decreased by 4% compared to last year. In spite of this reduction, however, the rate of online gambling fraud was still reported to be 67% higher between Black Friday and Cyber Monday, than the daily average for the rest of the year in Europe.

According to Jumio, since 2014, fraudulent activity within the online gambling industry increased a total of 60% overall.

Jumio had warned gambling operators to be aware of the increased risk of fraud

Prior to the busy shopping weekend, which ran from the 24th to the 27th of November, the identity verification expert issued a warning to online gambling operators that there would likely be a high risk of fraud over that weekend.

After the major shopping weekend past, Jumio’s data found that where significant increases in detectable fraud occurring at gambling sites, particularly during account setup process.

According to Jumio’s Head of Gaming, Anies Khan, “Online gaming operators are often reluctant to add extra barriers to the customer onboarding process because they want a seamless user experience.”

Khan noted that while this mindset is understandable, it may need to be rethought since it’s leaving operators open to attacks of online gambling fruad. Khan further stated:

“Operators must consider deploying more robust identity verification solutions that enable a swift user experience, but also provide an effective fraud deterrent.”

Jumio processes an estimated 300,000 verifications per day and serves nine of Europe’s ten largest online gambling and gaming sites. The company works to boost customer conversions while at the same time decreasing susceptibility to fraudulent activity.

About The Author

As both a player and a fan of strategy analysis in the area of online gambling, my goal is to share the latest information and news about online casinos and the games that they offer. My background was originally in writing guidebooks for the individual games, as well as for tournaments, but after a decade of that, I chose to expand my experience to writing honest, objective, and helpful articles.

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