Gambling fraud is a worry for many users of online casinos, especially when you’re new to playing or are looking for a new online casino to use. This article will look at what gambling fraud is, how it works, and how to stop it. We’ll also look into aspects like unauthorized gambling transactions, gambling scams, and fake gambling sites.
What is gambling fraud, and is online casino fraud in Australia common?
Essentially, online gambling fraud is when cybercriminals seek to defraud or abuse an online casino or bookmaker. There are typically three types of online casino fraud in Australia:
1. Fraud by players, e.g., fraud with withdrawing or depositing money or fraud involving deceiving the operator
2. Fraud by outsiders who try to invade casino software, e.g., by including backdoors in codes of scripts
3. Fraud by fake gambling sites, e.g., poor practice, not paying out winnings or bonuses, fake odds, circumventing laws, targeting victims to obtain their financial information, etc.
Gambling fraud exists on all types of online betting and games, including bonuses, spins, roulette, and or a jackpot game. It can involve game-rigging, sports-fixing, or match-fixing too. Even foreign lottery scams are going around, which target people to pay large amounts of money to play the lottery, but the lottery and its prizes don’t actually exist.
Thankfully, in Australia, many online casinos are legitimate. And as long as you know how to spot the warning signs, you’ll be able to find many a trusted casino here.
The Five Most Common Ways to Cheat in a Casino – Protecting Yourself
1. Having multiple accounts
You’re not allowed to have multiple accounts in any trusted casino – and for a good reason. Imagine opening up a new account each time you wanted to play just so that you could access that welcome bonus again! It’s not allowed. Many fraudsters do just that. They create numerous accounts, often with fake credentials, so that they can commit online gambling fraud. The fraudsters abuse the bonus system and free spins with multiple accounts, making the casino lose out on their profits.
2. Gnoming
This is a fraud whereby multiple fake accounts are created in order to help one player win. The other accounts will deliberately lose so that the winner will pocket the winnings and the bonuses.
3. Chip dumping
Practise chip dumping – just like gaming, this is a fraud that happens with fake accounts at the poker table, with the idea being to influence the results so that one player wins.
4. Payment fraud
Essentially, online gambling sites and casinos are digital wallets. They hold people’s funds, which means they’re involved in the risky business of processing payments. Fraudsters look for weak areas in online casinos and are involved in using practices like:
– Stolen bank cards or credit cards – fraudsters will use stolen information to fund an account. This means that they top up with someone else’s card details and pocket all the winnings.
– Online casino chargebacks jail – this is a practice whereby fraudsters have topped up their account with a card but then go to their credit card provider or bank and request a chargeback. This means they get refunded for the money they put into the casino, but they also get to play with that money in the casino.
5. Top-up service abuse
Some casinos offer top-up services by phone. Fraudsters call someone with a burner phone and trick them into topping up their balance. Instead, the funds go to their online gambling accounts.
Preventing Online Gambling Fraud
Knowing what online gambling fraud looks like is the first step to preventing it. Hopefully, you’ll be aware of the most commonly seen gambling scams by our list above.
One of the best things you can do to avoid a scam is to check the site you’re about to use. Check to see if the site has good reviews from independent sources before you sign up and gamble any money. Check to see if the casino you’re going to use is an online casino franchise or an independent casino. There’s nothing wrong with either type, but you might want to be warier when using the former. If you’re looking for an online casino for Australian players, you won’t have much trouble finding a legitimate one. All legitimate sites have a strict process to follow, and you should expect them to have:
– An ID verification system
– AML (anti-money laundering regulations)
– Sign-up monitoring
– Log-in monitoring
– Withdrawal monitoring
– Deposit monitoring
– Games monitoring and auditing
– Gambling licenses
What is the difference between a gambling scam and gambling fraud?
The term gambling scam means that a perpetrator appears to act legitimately in the casino and camouflages himself as a trustworthy, legitimate player. Unlike reliable online casinos in Australia, the perpetrator uses stolen ID or credit cards or uses multiple accounts with gambling fraud. Scammers tend to keep playing until they no longer get away with it, while a fraudster will often leave whenever they’ve made some money.
Let’s not forget, though, that scams are also possible by operators themselves with rigged games and rigged betting, which is why you should always check you’re using a legitimate betting site.
Final thoughts on online gambling fraud
It’s not easy for online casinos and gambling operators to monitor their sites and prevent fraud. Being home to digital wallets always opens up many risk factors, requiring sophisticated measures to check for fraud and flag-up issues. All legitimate online gambling sites will have practices to avoid fraud. As a player, it’s important always to do your research and ensure you use a legitimate site.
