An array of regtech tools is no longer enough to protect against bonus abuse
In the competitive world of gambling, the temptation to outsmart the industry and cash in on bonuses persists, despite the presence of advanced fraud, verification, and payment risk management tools. According to industry expert and founder Ozric Vondervelden, bonus abuse is costing the industry billions, and the systems in place to counter it are not effective.
Ozric highlights the moral ambiguity associated with bonus abuse, which attracts individuals to exploit vulnerabilities in the system for substantial financial gains. Even with a variety of fraud and verification tools available in the market, bonus abuse continues to thrive, as fraudsters have found innovative ways to bypass these security solutions.
Issues with security defenses such as device fingerprinting and background verification were highlighted by Ozric’s research in New Jersey, where he discovered that fraudsters using a single identity to exploit multiple welcome offers could gain profits of over $18,000. Additionally, the use of publicly available data in verification processes and the exploitation of ‘document upload upon withdrawal’ practices have made it easier for fraudsters to continue their activities.
Advances in AI have also presented a challenge, as the technology can now bypass costly liveness checks, creating a technological arms race that further undermines security measures. The introduction of digital wallets and virtual cards has added to the problem, as these technologies have made it easier for users to exploit bonuses by creating multiple accounts linked to a single wallet.
In light of these challenges, a new approach is needed to address bonus abuse and gameplay risks in the industry. Ozric points out that risk solutions are necessary but not sufficient, as they do not provide a complete solution. Instead, a combination of device fingerprinting, verification, payment analysis, and gameplay analysis is required. However, many of the risk mitigation products used in the industry lack a focus on gameplay, which is the only process that cannot be spoofed and serves as a failsafe against bonus abuse.
To address these issues, Ozric has developed Greco, the industry’s first Gameplay Risk Engine dedicated to identifying gameplay risks and determining the true value of every player. This innovative solution aims to combat the challenges associated with bonus abuse and protect operators from incurring substantial losses.
In conclusion, the gambling industry is in need of more effective and comprehensive approaches to combat bonus abuse and gameplay risks. With the introduction of dedicated tools and mechanisms like Greco, operators can gain better insights into their players’ behavior and protect themselves from potential financial losses caused by fraudulent activities.