In the world of online gaming and gambling, protecting your platform from fraud is essential to keeping things running smoothly. Whether you’re running an online casino, a sports betting site, or a gaming platform, staying one step ahead of fraudsters is key. One common headache that many in the industry face is bonus abuse – a problem that can quickly chip away at your profits if not properly managed.
Let’s dive into what bonus abuse is, the different types you should watch out for, and how our advanced fraud detection system can help tackle it.
What is Bonus Abuse?
Bonus abuse occurs when players take advantage of promotional offers – such as sign-up bonuses, free spins, or deposit matches – to gain an unfair edge or pocket more than they’re supposed to. Some fraudsters go so far as to create multiple accounts to repeatedly claim the same bonus or use fake details to game the system. This is particularly damaging to gambling platforms, as abuse of offers can quickly drain the business of its margins.
What are the Different Types of Bonus Abuse?
There are several ways that fraudsters can abuse bonuses, and each method can have serious financial and operational consequences for gambling platforms.
It’s important for businesses to stay up to date on the common types of bonus abuse, so they can spot and deal with suspicious activity before it gets worse.
Multi-Account Abuse
Fraudsters often create multiple accounts to take advantage of a single bonus multiple times. This practice allows them to repeatedly claim new customer promotions. Using different emails, IP addresses, and even identities, these fraudsters can significantly drain a platform’s resources. Not only does this result in lost revenue, but it can also increase the cost of customer acquisition, as these fraudulent accounts skew the actual effectiveness of marketing campaigns.
Arbitrage Betting
Arbitrage betting is where fraudsters take advantage of promotional free bets or bonuses by betting on all possible outcomes of an event, ensuring a win no matter what. This is particularly harmful to sports betting platforms, as fraudsters can guarantee a profit by exploiting bonus offers. It drains profits and disrupts the natural betting market, making it harder for platforms to offer genuine players attractive promotions.
Affiliate Fraud
Some fraudsters may work in conjunction with unethical affiliates to claim bonuses and manipulate affiliate programs. They create fake players or accounts, using bonuses to generate revenue for the affiliate without contributing real value to the platform. This not only results in financial loss but also damages the trust between gambling platforms and their affiliate partners.
Bonus Hunting
Bonus hunters exploit welcome bonuses, deposit match offers, and other promotions by signing up just to claim the bonus, and then withdrawing the funds as soon as possible. They have no intention of becoming regular customers, so platforms end up giving away free money without gaining long-term players. This practice can be especially damaging for new platforms trying to build a loyal user base.
How Truevo Tackles Bonus Abuse
Our fraud detection system is specifically designed to help gambling platforms spot and prevent threats like bonus abuse. Here’s how it works to keep your business safe:
Monitoring Multiple Characteristics
Every transaction that takes place on your platform is analysed by our fraud detection system. It evaluates between 60 and 240 different characteristics for each transaction – things like the time, location, amount, and card usage history. This detailed analysis gives a clear picture of customer behaviour, making it easier to spot anything suspicious. In the case of bonus abuse, the system can detect patterns, such as multiple accounts trying to access the same promotion from the same location or card. These patterns raise a red flag, allowing the system to block fraudsters before they can exploit your offers.
Collusion Detection
Bonus abuse often involves collusion, where multiple individuals work together to exploit your platform. Our system is particularly effective in identifying this type of behaviour in gambling environments. For instance, it can spot when people place bets on opposite outcomes across different accounts, ensuring they win regardless of the result. This is vital protection for casinos and betting sites, where such schemes are becoming more common.
Proactive Fraud Prevention
We don’t just react to fraud after it happens – we work to prevent it before it can cause damage. By identifying risky behaviour patterns, our system can block dodgy transactions before they’re even authorised. This is especially helpful for new or low-risk merchants who may not have much historical data to work with. We’re able to spot risk, even in first-time transactions, giving you an extra layer of protection.
Real-Time Updates and Adjustments
Fraud techniques are constantly changing, so we regularly update our detection rules to keep up. These updates are usually implemented within two weeks to a month, ensuring the system stays ahead of emerging threats. This ability to quickly adapt means your platform remains protected, even as fraudsters come up with new ways to exploit your bonuses.
Collaboration with Clients
As a gambling operator, you’re not left on your own to deal with fraud. We work closely with you to block specific transactions, set up custom fraud prevention rules, and give you access to historical data. This partnership helps you reduce chargebacks and avoid financial losses from bonus abuse.
For gambling platform operators, keeping your business safe from bonus abuse and other types of fraud is a must. Our advanced fraud detection system provides a solid, dependable solution, so you can focus on running your platform without worry. With real-time monitoring, proactive steps, and regular updates, we make sure your platform stays secure and profitable.
Want to learn more about how we can keep your platform and profits safe? Let’s talk!
