Preparing for Black Friday in iGaming: 6 ways operators can stay secure
As the Black Friday frenzy rolls around again, our inboxes are full to the brim with deals, discounts and other digital delights. But it’s not just retailers that are reaping the rewards - it’s a bumper time for iGaming too. At Yaspa, we see payment volumes for our iGaming customers surge during this time. So as traffic and registrations peak with players taking full advantage of seasonal special offers, operators must be vigilant about the risks posed by scammers who are equally eager to cash-in.
According to Cifas, 2024 is set to be a record year for the number of fraud cases filed to the National Fraud Database (NFD) with some 214,882 reported between January and June 2024, an increase compared to the same period in 2023. Identity fraud is the most commonly reported instance, and trends around easy access for criminals to sophisticated technology and AI are also being cited as major reasons behind the rise.
Here are 6 ways operators can keep themselves safe from fraud and scams this Black Friday season:
1. Preparing for increased fraud attempts
Since Black Friday bonuses bring in an influx of players, high-volume environments are an ideal breeding ground for fraud.
Scalability of fraud detection systems
Automated systems that might work fine under normal circumstances can be overwhelmed by additional traffic, allowing fraud to slip through. Operators should ensure they have systems that can maintain accuracy and speed under heavy loads, detecting anomalies and suspending suspicious activity in real time.
Monitoring for unusual transactions
In many cases, scammers use the rise in activity to conceal unusual payments or betting patterns. Advanced monitoring software can alert operators to risky behaviour, such as new account opens with very high initial deposits, or high-frequency bets that don’t conform to typical trends. By deploying player risk scores and real-time alerts, fraud can be identified before it disrupts the business.
Operators should anticipate these issues ahead of time by stress-testing their infrastructure and introducing short-term increases in security measures to mitigate this period.
2. Identity verification and KYC
As more users flock to take advantage of Black Friday deals, it’s vital that iGaming operators maintain stringent identity verification and KYC (Know Your Customer) protocols. Identity verification is necessary to avoid scammers creating fake accounts.
Onboarding new customers quickly and safely
A smooth onboarding process is vital during this high-traffic period, but security can’t be compromised. Real-time identity verification methods, such as AI-based document and biometric verification, can help operators validate valid player identities without introducing unnecessary delays. Automating aspects of KYC can strike an optimal balance between speed and accuracy without compromising the customer experience.
Enhanced user verification for high-risk accounts
For accounts that display unusual behaviour, including fast or high-stake bets, additional verification may be required. Multi-factor authentication (MFA), geolocation, and device fingerprinting can all be used to make sure only authenticated users gain access to accounts. This is especially relevant on Black Friday and Cyber Monday when higher rewards lure fraudsters to lucrative accounts.
Using account-to-account payment providers such as Yaspa can help streamline players’ bank account verification using biometrics via open banking, as well as providing source of funds verification, helping prevent fraudulent activity such as account takeovers.
By focusing on secure, efficient KYC processes, providers can ensure the trust of users and mitigate the likelihood of identity fraud, even during busy periods.
3. Preventing bonus abuse and promo fraud
Black Friday promotions can also be a tempting target for scammers looking to cash in on multi-account bonuses and other techniques. Bonus abuse can be costly — both in terms of promotional budget and customer support.
Recognising multi-account fraud
Multi-accounting, or opening multiple accounts to take a single promotion and use it several times, is among the most common bonus abuse scams in iGaming. Operators can use sophisticated tools such as device fingerprinting, IP monitoring and behaviour-based analytics to uncover patterns associated with multi-account fraud. Also, using player risk scoring to observe behaviour on a new account can give you warning signs of abuse.
Learn more about Yaspa’s Safer Gambling solution which uses pan-operator behavioural traits assisted AI for a safe and seamless customer experience.
Establishing clear bonus policies and limits
To help minimise bonus abuse, operators should enforce strict bonus policies such as multiple bonus redemption requirements or bonus amounts per player limitations. Automated rule enforcement can help prevent abuse while being upfront with users about the rules can help reduce disputes.
By balancing enticing promotions with robust anti-fraud mechanisms, operators can ensure that real players have an enjoyable and secure experience.
4. Protecting against account takeover and credential stuffing
Account takeover (ATO) fraud is a common threat, especially during high-traffic periods. Using previously revoked credentials to open an account by fraudsters is a popular method of obtaining unauthorised access.
Increased login security
To mitigate ATO exposure, iGaming operators may consider using MFA when processing sensitive transactions, such as large withdrawals or account adjustments. Parameter detection algorithms that flag unusual login activity (i.e. logins from a strange device or place) are also useful in detecting compromised accounts.
Customer education on account security
Educating players about passwords and the importance of securing their accounts can help further reduce ATO risk. It can help to encourage users to change their passwords in advance of important events such as Black Friday and avoid using the same password on multiple sites. Email notifications when someone attempts to log in are another good way to alert players to the possibility of a phishing attack.
Proactive account security can protect players and operators from the financial and reputational harm caused by ATO fraud.
5. Monitoring transactions and ensuring AML compliance
As transaction volumes spike, AML controls should be tightened to detect unusual activity fast. It’s important to track transactions to catch small - and large-scale money laundering campaigns that can get lost in the chaos of Black Friday.
Real-time transaction monitoring
Real-time monitoring is essential to detect fast deposits and withdrawals, abnormally high transactions, and other signs of money laundering.
Advancing AML risk management and documentation
Transparency is key to ensuring transactions leave an audit trail for regulation purposes. By keeping logs of flagged transactions, alerts, and customer verification activities, operators can prove compliance if necessary. This time of year is also a great opportunity to assess and revise AML controls to ensure they’re compliant with local rules.
These AML efforts not only shield the operator’s business but also bolster industry stability and regulatory enforcement.
6. Minimising chargeback and refund fraud
The rise in Black Friday transactions brings with it an increase in chargeback and refund fraud attempts. Fraudsters often attempt to dispute legitimate transactions, costing operators revenue and administrative resources.
Reducing chargeback risk
Clearly articulating deposit and refund policies, and gaining explicit customer consent before processing transactions, will help limit chargebacks. Additionally, operators may consider implementing tools that identify high-risk players with a history of disputes to mitigate chargeback risks in advance.
Behavioural analysis to catch fraud before it happens
Applying behavioural analysis to identify unusual betting patterns, such as quick withdrawals after large deposits, can help operators catch chargeback fraud before it happens. Tracking accounts for abrupt, out-of-character betting actions also offers valuable insights to support a decision. Anticipating chargeback fraud saves revenue and saves administrative time by avoiding disputes.
Final thoughts
Black Friday offers iGaming operators a chance to boost engagement and attract new players. But it also calls for a multi-layered, proactive risk and fraud management strategy. By tightening fraud protection, KYC controls, transaction monitoring, and ensuring strong account protection, operators can provide legitimate players with a secure and enjoyable experience while minimising risk.
If you would like to discuss how Yaspa can help streamline your payments processes and help your iGaming business stay safe, please do get in touch.
