How to Prevent Bonus Abuse Fraud?

Scammers use different bonus abuse techniques to take advantage of free cash, welcome packages, and sign-up offers. Learn how businesses can prevent bonus fraud.

Bonus abuse fraud becomes a great issue in the niche of iGaming. While online gambling quickly adapts to the rules of global digitalization, fraudsters apply more complex techniques. iGaming platforms offer free cash to attract more players. Scammers are ready to take advantage of those promo campaigns offered within the online gambling industry.

Free bets, reload and deposit bonuses, sign-in packages, and other promotion types took bonus hunting to a new level. Every gambling platform needs effective fraud-prevention tools. Not only do they help save money and reputation but also improve the overall user experience.

In this article, we will discuss major types of bonus abuse in gambling as well as tools to detect and prevent them.

The Impact of Bonus Abuse Fraud

Since most iGaming companies give out different promotions in an attempt to draw in new customers, bonus abuse scams have grown to be a serious worry for the entire gaming industry.

Fraud risks usually occur right from the start at the stage of the registration process. Let’s say, a betting site offers a great signup bonus package with free cash for players to get started. Sounds pretty cool, doesn’t it? However, bonus hunters are always there waiting for their chance.

Generally, they commit identity theft to steal credit card credentials or create multiple accounts to claim free cash, play with free money, and then leave for another website. Fraudsters’ schemes become more complex. They know how to KYC checks and provide fake identities and fictional IDs. Once numerous fake accounts are created, they take advantage of deposit bonuses and other promotions.

To businesses’ frustration, those are only a few ways bonus abusers act online. Here are some most popular types of bonus abuse techniques all companies should be well aware of:

  • Chip dumping. It takes place when usually a poker player intentionally loses chips in order to sway the result of a hand and give another player the advantage. It involves creating multiple accounts.
  • Account takeover. In order to take advantage of casino bonuses for their personal gain, scammers commit identity fraud to access an existing user's online gaming account.
  • Money laundering. Fraudsters use several accounts to obtain bonuses illegally hiding their real cash source and making money seem legitimate.
  • Arbitrage. It involves using various betting sites to place as many bets as possible despite the outcome in an effort to increase the winning chances.
  • Collusions. It occurs when a group of fraudsters collaborating benefit from promotions and manipulate the system. This may entail concerted attempts to manipulate games or profit from promotions.

As you can see, most bonus abuse fraud types are performed by a group of scammers. This fact makes it harder for iGaming sites to keep their bonus money safe. The industry calls for a comprehensive, up-to-date, and effective anti-fraud toolkit that works on autopilot.

Challenges with Bonus Abuse Prevention

As stated earlier, bonus abuse starts right at once during the registration process. As many sites offer so-called welcoming or sing-in bonuses, players first need to register and then get free cash to their balances.

This is where bonus hunting starts. Scammers create fraudster groups using the following schemes:

  1. Opening several accounts for registration. This is the most typical way of bonus abuse. Fraudsters create several accounts under several identities—often fake or stolen ones.
  2. Making use of stolen credit cards. Credit card thieves can also use stolen card credentials to fund their accounts and get bonuses. This can be a risky approach because there's a chance the credit card company will discover the fraud and demand the money back. So, fraudsters need to elevate their scamming techniques.
  3. Using prepaid cards. Prepaid credit cards are hard to track down. This is why fraudsters often use them for bonus abuse. Since scammers can easily buy prepaid credit cards with cash, detecting and preventing fraud is a huge challenge for iGaming operators.

The impact of bonuses abuse can be disastrous. On the one hand, it has a severe financial impact. Companies lose millions without a chance to recover. What’s more, iGaming sites have their online reputation ruined with users’ sensitive data compromised.

Manual Reviews

It appears that a big part of bonus transactions requires manual reviews. In simpler words, there is no automated system to process bonus claims. Besides, companies need to spend huge resources to handle manual reviews. It is very time-consuming not to speak about costs.
Only a small percentage of all claims are declined. It means the majority of promotion applications are fulfilled. This is where companies face a crucial dilemma.

Security vs Growth

The main challenge is to decide whether to opt for automated solutions and process reviews automatically or enhance manual processes trying to make it safer. In the case of automated solutions, it can lead to a degrading support system, which will inevitably reduce customer loyalty.

User Experience

Numerous factors are at work when addressing bonus abuse automatically. Rather, businesses are recommended to be proactive and use a third-party fraud prevention solution to help improve their customers' data when appropriate:

  • Heavy KYC looks safer. It generally takes around 1-5 minutes to complete verification. Most users are not likely to wait for so long. They would rather leave for a faster bonus verification.
  • Light KYC seems to be a good alternative. The verification process takes seconds. However, the approach is riskier.

A combination of lighter KYC and advanced anti-fraud solutions looks like a perfect way to protect businesses and players from bonus abuse. It helps companies track clients’ digital and device footprints online as well as enrich the available behavioral and technical data.

Juicyscore’s Solution Against Bonus Abuse

JuicyScore was created to help iGaming companies prevent different types of bonus abuse. From account takeover to money laundering, our solution helps detect and identify high-risk applications and generate crucial; technical and behavioral insights for data scoring.

Our software is the most reliable Device ID in the world. It minimizes the risk of bonus fraud and delivers a cutting-edge technology stack with several tools for virtualization detection, anonymization, and randomization. Lastly, we develop validation and data analysis methodologies. It makes it possible to locate and identify a device, controlled externally.

Advanced AI Modeling

JuicyScore makes use of cutting-edge AI and machine learning technologies. It is a comprehensive toolset for preventing fraud created to help iGaming platforms combat scammers. It guarantees state-of-the-art security means in a number of iGaming verticals, such as poker rooms, casinos, and betting.

Businesses can benefit from the following technological approaches:

  1. AI-Powered Algorithms Bonus Abuse Recognition. The software uses hundreds of different device authentication parameters to create an accurate end-user profile based on a variety of tech data and behavioral elements.
  2. ML-Powered Techniques for Lowering Bonus Fraud Risk. Automatic risk detection is performed on the fly. To compute technical metrics, the system takes advantage of hundreds of settings, characteristics, and indicators regarding the user’s device. They support the monitoring and analysis of the network infrastructure quality, the Internet connection, and other carefully monitored and evaluated components.

Real-Time Monitoring

Advanced technology is a critical component of our premium data vector. iGaming sites receive a comprehensive toolkit for identifying and stopping online fraud in real time.

We use the complex JuicyScore data vector to build an adaptive assessment model. It assists gaming platforms in obtaining sufficient data to evaluate the safety of bonus claims and the trustworthiness of client accounts. Its main mission is to facilitate effective decision-making.
The program serves as a digital safety advisor. It comes as a part of a broader toolkit for preventing fraud, which also includes algorithms to identify randomization and device manipulation. This is how the system produces values based on scoring models.

Our technology performs extensive tracking automatically using authentication techniques. Fraudulent behaviors such as multi-accounting, data randomization, device virtualization, and stolen credentials can be detected and prevented promptly.

Key Features

JuicyScore software for detecting bonus abuse serves as a virtual advisor. It automatically evaluates integrated indices and parameters.
Implemented technologies lower the risk of fraud by utilizing many data sources. They automatically evaluate any potential cyber threat and generate the basic behavioral and technological prints needed to create an extensive digital profile.

In a matter of seconds, JuicyScore detects a potentially fraudulent transaction. Every time an abnormality is identified, it creates "red flags" to ensure better decision-making within the iGaming industry.

Device Fingerprinting

The program analyzes several major and secondary bonus fraud risks associated with online gaming. JuicyScore can monitor key device-assisted metrics for optimal device fingerprinting.

Our data vector includes critical criteria that allow fingerprinting to be done accurately, such as RAM, screen size, display quality, and kind of carrier (tablet, desktop, laptop, or mobile).

Behavioral Patterns Analysis

The system notifies businesses of any abnormal activity or possibly false bonus claims. With our technologies, teams can discover various routing strategies, remote access, device cloning or randomization, and more.

Data Enrichment Solutions

JuicyScore analyzes a range of elements to assess the tech and behavioral data. It incorporates a range of aggregated factors, such as dwell/flight times, average typing or content reading rates, devices that are used on the same source for an extended period of time, duplicated or randomly picked devices, and other noteworthy behavioral data.

How It Works

JuicyScore uses filters based on device attributes (OS, browser version, Internet connection quality, behavioral variables, etc.) to classify high-risk flows into niche-specific groupings.

Risk Assessment for New Accounts

To properly execute fingerprinting, the JuicyScore data vector defines the type of carrier (tablet, desktop, laptop, or mobile), screen size, display quality, RAM, and other essential parameters.

It helps to identify potential anomalies that are not associated with a particular user. These could demonstrate device cloning or randomization, remote access, various routing strategies, and more. Companies will be able to detect fraudsters at an early stage during registration.

Multi-accounting Prevention

The system automatically identifies potentially stolen or fake credentials. It generates and calculates technical and behavioral metrics making use of 214 settings, attributes, and device-assisted indicators. They cover the quality of the network infrastructure, the Internet connection, and other factors that are carefully considered and evaluated.

Transactions Monitoring

Companies are able to assess every participant attempting to finish a certain transaction/registration or claim a bonus. Organizations use generated and processed data to build highly informative fraud risk models over time. Ultimately, gaming sites might create an inexpensive risk-assessment method that reduces overhead, boosts client trust, and improves loyalty.

Get Started with JuicyScore Today

We are here to help you adopt a successful anti-fraud strategy for your iGaming project. To get started with JuicyScore, just follow these easy steps:

  1. Make sure you have JavaScript or SDK installed.
  2. Set up anti-fraud software following your specific business needs.
  3. Initiate the necessary data collection and analysis to detect and eliminate bonus fraud risks.

JuicyScore's technology helps you gain income and boost clients’. Reach out to us to book a demo.


How Can Online Casinos Stop Bonus Abuse?

They need to apply advanced anti-fraud solutions that combine ease-of-use, automation fraud detection technologies, as well as efficiency in device fingerprinting and account protection. These solutions must not lead to degrading support services.

What Techniques Are Commonly Used in Bonus Abuse?

Generally, scammers steal credit card credentials as well as create fake accounts for money laundering, chip dumping, arbitrage, and other types of fraudulent schemes aimed at taking advantage of special promotions and bonuses.

What Are the Warning Signs of Bonus Abuse in Online Gambling?

Several factors may indicate bonus abuse. For example, a short period between claiming the sign-up bonus and withdrawing cash. Some scammers play only specific games (slots with free spins or special promotions). VPN, TOR browser, or device randomization usage is also a sign of potential fraud risk.

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