Gambling Abuse Prevented by Fraud Analytics

When it comes to fraud, no industries are more prone to this than the financial sectors. While there has been the inception of many organizations with the primary goal of preventing fraud, the fact is that it's something that cannot be contained as easily as money laundering.

Many online platforms have employed the services of institutions like TransUnion which have developed counterfeit analytics to detect and stop the act of fraud. This is done by special technology known as artificial intelligence, which is able to think for itself and monitor systems. It would use principles which have been programmed into it to make decisions and determine whether or not an act of fraud was been carried out.

Not only are these systems incredibly efficient, but they're accurate too, and this allows an online operator to focus on the clients and enhancing their overall experience. We'll be taking a look at the various types of fraud in online casinos and fraud analytics as a whole.

Various Types of Fraud

Criminals are creative, and to beat the system you have to think outside the box by exploiting loopholes in various rules and breaking them altogether.

Credit Card Fraud

One of the most popular types of fraud which is becoming easier to do due to information breaches of financial and credit card data being very easy to get hold of. This information is used by hackers to make purchases of luxury items and other high-value goods which will be able to be sold relatively easily once they get hold of it.

Chargeback Abuse

This is when the legitimate holder of a credit card account will contact their financial institution and report an unauthorized payment towards an online casino. This will result in the institution reversing the charges which have been made which leaves the casino responsible for the charge. This is where it becomes tricky for a fast payout online casino, as they will be able to fight the charges, but chargebacks are extremely detrimental to the relationships they have with financial institutions.

Chip Dumping

Criminals often use online casinos to launder money due to gambling winnings being deemed a legal income, they're able to be deposited in a bank account and be claimed on tax reports. Criminals will look very suspicious if they were to walk down to the bank and deposit a few million dollars, so what they do is hire a group of people to gamble the money online and lose it all to one person. This person will then be able to deposit the money into a legit account. This is what's known as chip dumping when a person is hired to perform an illegal practice.

Fraud Analytics

Fraud analytics is the best way to detect and stop illegal transactions from being implemented, this means that analytic technology is being used in conjunction with human interaction. This technique is based on the analysis of patterns, irregularities, and other inconsistencies. This allows an organization to easily identify a threat and put a stop to it before it becomes a significant financial problem.

This system has been used for over 20 years to combat corruption, financial abuse, and fraud, with powerful and specially designed tools being used to keep companies safe. There are plenty of benefits which come with using fraud analytics such as the identification of unknown patterns, enhancing and extending existing efforts, crossing the divide, and measuring and improving performance in the workplace.

Advanced solutions also allow organizations to treat new customers as if they've been long-standing clients of the company, this improves their experience by making it easier for them to access their accounts or take advantage of a seasonal promotion.

How Safe Are We?  

There're no telling what criminals are going to strike back with, while companies may have the financial resources to develop advanced software to scout for criminal activity, the brainpower some criminals possess sometimes surpasses what a large organization is able to come up with. This leaves holes in some programs which hackers and other cybercriminals are able to exploit. We have to assume that there's always going to be a threat lurking behind the curtain.