Common Online Gambling Fraud

[alastantiger]

Fraud is intentional deception to secure unfair or unlawful gain. Fraud and fraudulent activities can be found in every spheres of life. In the online casinos and betting there are common frauds that are perpetrated by criminals in the guise of gambling. They include:

• 1. Bonus Abuse
  Bonus abuse is the practice of joining up for a service repeatedly using promotional offers that are typically only available to new members. There are various terms are used to describe it, such as bonus abuse, casino whoring, bonus hunting, and promo abuse. This practice, known as multi-accounting in the fraud world, frequently targets no-deposit bonuses like free spins or free money. It mostly affects poker, casino, and sports betting websites, but any business that leverages signup bonuses as a marketing strategy may be at risk.
  
  The problem is that fraudsters attempt to create as many new accounts as possible, relying on stolen IDs, resulting in synthetic identity fraud and prepaid credit card details to bypass the Know Your Customer (KYC) checks. More sophisticated criminals can also have the resources to use emulators, virtual machines, and even residential-like IPs, such as Socks5 proxies or mobile networks to leverage fresh IP addresses.
• 2. Collusion
  The use of numerous accounts by one person or a group of individuals who work together to influence a particular outcome is known as collusion. The most popular target of collusion schemes is online poker. Players occasionally open new accounts to restart from scratch. A poker tournament's big pot may potentially be won through collusion. However, it can also happen in other card games such as Blackjack. Sometimes, players collude to commit bonus fraud.
  
  Players might even engage in self-collusion by creating many accounts and then use one account to win over another. For example, two players register and make a $500 deposit to receive a $50 signup bonus. They can lose to each other until they reach the rollover requirements. Upon meeting the conditions, both players can cash out, and each walks away $50 richer.
• 3. Chip Dumping
  Chip dumping is the act of purposefully losing chips to another player at the table. It's something that thieves have been known to use in an effort to launder money they have acquired illegally. They believe that if they lose all of their money to a different poker account that they already own, that the original source of the funds might be lost. They hire individuals to gamble online and lose to a single person. Once that person cashes out, the money will appear as legally earned. It is a form of collusion
• 4. Impersonation
  Impersonation is when a player acts on behalf of somebody in a nonconsensual manner. They do that using stolen accounts. Moreover, fraudsters would look for proxy servers using SOCKS5 VPN and RDPs. There, they can conduct impersonation and other fraudulent activities. Impersonation can also happen with consent, like in an affiliation scheme. An experienced player uses an account to play on behalf of a newbie. They will enjoy their perks and fraud online gambling sites for profit percentages.
• 5. Credit Card Fraud
  At gambling websites, it is very typical to see thieves using stolen credit cards. If they can get the card to work, they can quickly and easily cash out. Cybercriminals can use a stolen credit card to top up an online casino account. From there, they can withdraw in cryptocurrency.
• 6. Chargeback Fraud
  Also known as friendly fraud, this is when a legitimate customer files a chargeback under false pretenses to get their money back. It happens rather frequently in online gambling, when a person who just lost a lot of money might phone their bank, say that their card was used without their knowledge, and then get their gabling losses refunded. Gambling establishments may counter the onslaughts. However, if they receive too many chargebacks, it could result in damaging their relationship with card providers. Being unable to support payments from a major card issuer can basically cost them their business. More often than not, just swallowing the loss is more practical than fighting it.

Note that - Collusion, bonus abuse and chip dumping are subcategories of Multiple account fraud.

That's all for now. Thank you for reading.
What other common or uncommon type of online gambling fraud have you noticed?

[Oshosondy]

• 5. Credit Card Fraud
  At gambling websites, it is very typical to see thieves using stolen credit cards. If they can get the card to work, they can quickly and easily cash out. Cybercriminals can use a stolen credit card to top up an online casino account. From there, they can withdraw in cryptocurrency.

That is why it is good to protect your phone against sim swap attack, if OTP is not received, the scam will not be successful. But the most important thing is to protect your card pin, if protected and not known to scammers, they will not be able to withdraw from your bank. In my country, this type of scam is common, the scammer will call you, doing as if they are from your bank, ask you about an OTP sent to your phone or asking about your pin. There are some that do not require pin, but do not give scammer OTP sent to your phone, even do not bother to talk with them at all.

[Beparanf]

Bonus abused is what’s common on online casino available in the forum because the rest that involves credit cards is very rare since only few casino accepts direct credit card payment to top-up casino balances. The collusion and other abuse that categorized under multiple account is next to the bonus abused for the most common issue here. Looking on the scam accusation board that related on casino shows that most of the user that reporting case are those who abuse the casino bonus and using the forum to get support and play victim.

The charge back abuse is new to me. This is really prone to abuse if casino allows card provider to charge back their customer loss.

[jossiel]

There's also the match fixing.

And the fraud goes with those people claiming that they know a match that's about to be fixed and from there, they're asking people to deposit and bet also with them.

Those that are gullible to believe them, not too curious about asking for any verifications are likely to fall for this type of fraud. Due to their greediness, they're forgetting to verify and ask certain questions and deposit quickly.

That's the problem that's coming back to them because of being greedy.

[robelneo]

Casinos are and should be aware of these frauds because scammers can siphon money from the casinos if casino operators are unaware of how these scammers work and how these online gambling frauds are committed.
Casino operations are one of the riskiest and very intricate businesses to operate, so operators should take up a lesson on security or have one of their team specialize in casino operations security.
We have seen so many abuses committed by players and every casino has its own security implemented to protect the integrity of the platform and how to deal with it.

[Wexnident]

• 4. Impersonation
  Impersonation is when a player acts on behalf of somebody in a nonconsensual manner. They do that using stolen accounts. Moreover, fraudsters would look for proxy servers using SOCKS5 VPN and RDPs. There, they can conduct impersonation and other fraudulent activities. Impersonation can also happen with consent, like in an affiliation scheme. An experienced player uses an account to play on behalf of a newbie. They will enjoy their perks and fraud online gambling sites for profit percentages.

I actually wouldn't consider this as one in case of gambling, most casinos ask for KYC anyway and they ask for really active/recent ones, so most imposters would easily get caught. If this was the case of impersonating someone to scam someone though, then that's a different thing.

What other common or uncommon type of online gambling fraud have you noticed?

The usual bug abuse if they can find one. I consider it a type of fraud since whoever found out about it is intentionally using it for their own personal benefit. I'd probably let them go if it was once since it may have been an accident, any more than that and it's intentional imo.

Match fixing as others have pointed out as well also counts as one, even if it was sports. Whether the fixing was due to a gamble behind it or just because the teams want to advance selfishly, it'd still damage people who bet on said matches.

[xSkylarx]

• 1. Bonus Abuse
  Bonus abuse is the practice of joining up for a service repeatedly using promotional offers that are typically only available to new members. There are various terms are used to describe it, such as bonus abuse, casino whoring, bonus hunting, and promo abuse. This practice, known as multi-accounting in the fraud world, frequently targets no-deposit bonuses like free spins or free money. It mostly affects poker, casino, and sports betting websites, but any business that leverages signup bonuses as a marketing strategy may be at risk.
  
  The problem is that fraudsters attempt to create as many new accounts as possible, relying on stolen IDs, resulting in synthetic identity fraud and prepaid credit card details to bypass the Know Your Customer (KYC) checks. More sophisticated criminals can also have the resources to use emulators, virtual machines, and even residential-like IPs, such as Socks5 proxies or mobile networks to leverage fresh IP addresses.

I remember before around 2016 - 2017 a lot of new websites that running bonuses or promotions to those new users my friends are really up to date on this they have group chats and they will start to create multiple accounts by changing their IP as well as using an emulator so that they can easily change the device ID and not get detected. There are platforms don't need to play just hit the minimum amount to withdraw which they do is deposit and withdraw, other also you need to play like 5 rolls before can withdraw which they do it. It was easy money for them but right now it is not possible due to KYC and they can easily detect you.

[klidex]

The usual bug abuse if they can find one. I consider it a type of fraud since whoever found out about it is intentionally using it for their own personal benefit. I'd probably let them go if it was once since it may have been an accident, any more than that and it's intentional imo.

Yes, and the occurrence of bugs in the casino is due to a problem in the game. I think if the casino has a good enough team, if they know a bug has occurred, they will immediately make improvements and improvements.
But the average gambler doesn't want to report this because they can take advantage of it by playing in a game where bugs are happening for the purpose of getting big easy profits so that in the end the casino is the one who loses.
So I don't think it's possible for a casino to intentionally carry out or make one of their games bug.

[Betwrong]

There's also the match fixing.

And the fraud goes with those people claiming that they know a match that's about to be fixed and from there, they're asking people to deposit and bet also with them.

Those that are gullible to believe them, not too curious about asking for any verifications are likely to fall for this type of fraud. Due to their greediness, they're forgetting to verify and ask certain questions and deposit quickly.

That's the problem that's coming back to them because of being greedy.

Is this really happening these days, apart from in movies and TV series? I seriously doubt it. I mean, of course, match fixing is happening every day somewhere on our planet, but not in the matches of the level high enough to be represented on reliable gambling platforms. So, if someone is saying  to you that a match of high level is fixed, indeed it's stupid to believe them.

[crzy]

Some fraud are being caught red handed while many are still free doing this fraud not just against the site itself but also to other people.
I've heard a news about buying an identity of someone and then using it for their fraudulent activities this is very common to some areas where people are being abused with their innocent mind about crypto. The site itself should strengthen their security against fraud, they should not allow this to happen at all cost.  

[Slow death]

there is something you need to add to this list, you must add abuse of TOS by casinos, which would be when people create casinos just to expect customers to make deposits in the casino and when they win the casino accuses these people of breaking the TOS because they cheated or have many accounts, here is a clear example of a casino that was created solely for the purpose of not paying claiming the TOS:

1XBIT.COM ᐉ 7 BTC WB ᐉ Altcoin Betting ᐉ no KYC ᕗ Instant payouts

you can see that there are many people complaining that they were not paid and the casino always comes with the argument that they broke the TOS

[coin-investor]

• 1. Bonus Abuse
  Bonus abuse is the practice of joining up for a service repeatedly using promotional offers that are typically only available to new members. There are various terms are used to describe it, such as bonus abuse, casino whoring, bonus hunting, and promo abuse. This practice, known as multi-accounting in the fraud world, frequently targets no-deposit bonuses like free spins or free money. It mostly affects poker, casino, and sports betting websites, but any business that leverages signup bonuses as a marketing strategy may be at risk.
  
  The problem is that fraudsters attempt to create as many new accounts as possible, relying on stolen IDs, resulting in synthetic identity fraud and prepaid credit card details to bypass the Know Your Customer (KYC) checks. More sophisticated criminals can also have the resources to use emulators, virtual machines, and even residential-like IPs, such as Socks5 proxies or mobile networks to leverage fresh IP addresses.

That's all for now. Thank you for reading.
What other common or uncommon type of online gambling fraud have you noticed?

Bonus abuse is probably the most used method by many gamblers to commit fraud in casinos because its easy to get away with, especially in casinos with faucets and giveaways, unless the casino is good at tracing this kind of abuse abusers can always get away with it, that is why we have seen so many gamblers after winning huge amount of money they cannot withdraw their earnings because they are caught multi-accounting when it's stated in their terms that they will not allow that.
Abuse and fraud is very rampant in the industry its one of the main problem why casinos are going down.

[famososMuertos]

First of all I think your thread fits very well in this one:
 https://bitcointalk.org/index.php?topic=5433349.0

BTW, the collaborations between users on the Gambling board are not frequent but if they do happen, it is good to gather these concepts in a single OP, either because he references that thread in his OP.

I think there are no online casinos "whoring" as you name in your OP or I don't know what you are referring to in its context, some "jargon" from your country (!?)

Forever... they collusion is a cancer that is always latent at the poker tables and it is something that always occurs at any level of bets, and it is not something exclusive to online casinos.

As for everything else, without a doubt, they are situations that above all must be known, but some of them correspond to the casinos to take care of themselves and on the part of the users not to fall into these bad practices.

[acroman08]

1. Bonus Abuse

what surprised me about this is when I found out that there are organized groups of people that look for a no-deposit bonus and abuse it. at first, I thought bonus abusers are just 1 individual that is trying to make some money through it but it surprised me that there are actually groups that do this to make some money.

• 3. Chip Dumping
  Chip dumping is the act of purposefully losing chips to another player at the table. It's something that thieves have been known to use in an effort to launder money they have acquired illegally. They believe that if they lose all of their money to a different poker account that they already own, that the original source of the funds might be lost. They hire individuals to gamble online and lose to a single person. Once that person cashes out, the money will appear as legally earned. It is a form of collusion

I wonder how do they detect someone is actually Chip dumping? sure they can observe a gambler's pattern, betting history, etc... but can they be actually 100% certain that someone is Chip dumping.

[dothebeats]

Credit card fraud is extremely common. I've seen this happen a lot of times not even in casinos but also on other eCommerce websites given that I've worked part-time as a fraud analyst. There's just too much credit card info available in the dark web that it's very easy to hit the jackpot with it. In collusion, I think casinos are pretty smart to spot this from a mile away. They may not instantly punish the perpetrators but they're sure to limit those accounts involved in the said scheme. Way better than banning them really, because those perpetrators will have an idea that the casino has the ability to detect such schemes and punish them silently for it.

[BitcoinPanther]

Fraud is intentional deception to secure unfair or unlawful gain. Fraud and fraudulent activities can be found in every spheres of life. In the online casinos and betting there are common frauds that are perpetrated by criminals in the guise of gambling. They include:

Do not forget about Money laundering where the perpetrator use gambling site to wash the history of their fund.  

What other common or uncommon type of online gambling fraud have you noticed?

There are lots of fraud happening in an online gambling, not only the player but also some gambling platform defraud their customers or players.  Some known fraud done by gambling platform are:

• Fake betting site
• Unfair odds
• Fake Promotions or bonuses
• Fake Live Casino
• Fake games
• Fake licenses
• Rigged games
• Non-payment of winnings

While hackers do

• Identity theft
• Unauthorized access of accounts
• Phishing attempt.

So we can say that it isn't only player who are involved in fraud but also the gambling platform, worst even the third person which is known as the hacker and criminals are also involved in an online gambling fraud.

[danherbias07]

The most common that I see here and outside the forum is Bonus Abuse. Trying to claim an amount that doesn't fit with the wagered amount.
Most of them forget about reading the terms and conditions or just the basic requirement on how they can qualify for the award.
Then, they will contact support and force the issue until one of them gives up or the other puts the gambling site on a scam accusation even without facts to back it up.
This is why online sports bookies and casinos do not let early withdrawals for bonus claimers, it's an open field for abusers to take advantage of.
The real gamblers who risked their money and want out early after a win are having the same trouble because of it.

[Hispo]

It catches my attention that the pure use of cryptocurrency by online casinos can help to counter two of those frauds mentioned by OP: Chargeback fraud and credit card fraud, both depend on a third party with other over one's money to be pulled off, in this case: a bank.
It is always too risky to gamble with credit, in my opinion.

Still the crypto industry has to deal with bonus abuse, though. 

[swogerino]

There's also the match fixing.

And the fraud goes with those people claiming that they know a match that's about to be fixed and from there, they're asking people to deposit and bet also with them.

Those that are gullible to believe them, not too curious about asking for any verifications are likely to fall for this type of fraud. Due to their greediness, they're forgetting to verify and ask certain questions and deposit quickly.

That's the problem that's coming back to them because of being greedy.

As you say those are gullible,even though I know fixed matches exist they are only for an inner circle,members of both teams fixing their encounter against each other and it is a sure thing that they won't be online asking people to help bet with them and asking money as a fee to give the gullible persons the information.I don't think any gambler except the truly desperate ones to fall for this old trap.

The credit card fraud is some of the most common one,people who have enough expertise to get this data,they know that there is no better way than to buy crypto with it and transfer it to some casino to gamble it or just gamble a little and the rest to withdraw.

[seoincorporation]

I would like to add another point to that list.

7. social engineering (Soft begging)

I have seen a lot of times people in the casinos chat telling some really sad stories with the intention of touching other users' hearts and that way receiving some coins. We can call it the shame speech.

Sometimes it works and other times they just get ignored but is a practice that has become more common nowadays, and users must be careful with this practice.