How The Igaming Industry Can Combat Fraud And Drive Innovation -

(MENAFN- Newsroom Panama) Fraud continues to surge in the online gaming sector, threatening both innovation and business viability. Recent research shows that fraudulent activity in igaming has increased by an average of 64% annually between 2022 and 2024. Last year alone, half of all online gambling operators reported losing at least 10% of their revenue to fraud. The industry faces a central dilemma: how to protect against increasingly sophisticated fraud schemes without stifling technological advancement. Ian Campbell, director of solutions at payment firm Equals Money, argues that overcoming this challenge will require a fundamental shift toward proactive, collaborative strategies across the sector.

The Rising Threat of Fraud in Igaming

Fraud's financial toll on igaming is staggering. Annual global losses run into the billions, and even large, established operators have fallen victim to data breaches and payment scams. The problem is exacerbated by several factors:

• More advanced fraud tactics, including identity theft and payment interception
• Rapid growth of digital platforms and remote gambling
• Increased regulatory scrutiny, which raises compliance costs and the stakes of noncompliance

High-profile attacks, such as mass credential stuffing incidents or major payment system breaches, illustrate the real risks to both companies and players. As digital expansion accelerates, so too does the opportunity for fraudsters.

Most often, the threat comes from offshore gambling operators. However, there are also completely honest and conscientious online casinos among them. Many of them offer young people innovative games such as Plinko. This game is so popular today that there are even special information sites with reviews of it. Many such resources even offer up-to-date selections of the best Plinko gambling sites to make it easier for players to navigate.

Why Reactive Approaches Fall Short

Traditionally, many operators have relied on reactive methods to combat fraud-implementing stricter controls only after incidents occur or regulations force their hand. This approach creates significant weaknesses:

• Delayed detection leads to greater financial losses
• Customer confidence erodes with each incident
• Regulatory fines increase, and innovation slows due to risk aversion

Other financial sectors, notably fintech , have shown that forward-thinking, preventative strategies catch fraud earlier and reduce overall disruption. By contrast, reactive compliance in igaming often means playing catch-up with criminals rather than staying ahead.

The Case for Proactive Collaboration

To make real progress, industry stakeholders must work together rather than in isolation. Proactive collaboration between operators, payment providers, and regulators can enable the sharing of critical information and best practices. Think of it as building a community-wide security system-just as airports exchange watchlists to spot threats, gaming companies should pool intelligence on fraud trends and tactics. This kind of unified approach magnifies individual efforts and creates a more robust defense.

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