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In 2024, if you haven’t yet become aware that you have been targeted by online fraud, that’s simply because you’ve been an oblivious victim. Internet scams are not only plentiful but dynamic in terms of their function.
Like many other facets of e-commerce, online gambling in the United States has become part of increasingly sophisticated fraud aimed at players. The tactics and the goals of these scams are varied, but they have one thing in common.
That commonality is that players can limit their vulnerability to all of them by taking some simple steps, most of which involve being proactive rather than reactive. Knowledge is power in this regard, and that power begins with understanding that you are a target for scammers.
Gaming-related scams on the rise
There’s no doubt that fraudulent activity on the Internet, in general, has and will continue to increase. However, in relation to online gambling in the US, there has been an especially significant spike due to the expansion of regulated opportunities to gamble online in many states.
Jon Clay, Trend Micro VP of threat intelligence, points to a March 2023 consumer alert1 from the Better Business Bureau regarding online sports wagering scams as proof of just how prominent such fraud has become. Clay goes into more detail about how these scams work.
“In addition to traditional phishing2 methods, scammers are increasingly using social media platforms and text messages in group chats to target users with fraudulent gambling opportunities’” Clay said. “By impersonating legitimate brands and offering enticing promotions through group chats or direct messages, they lure victims into sharing personal information or clicking malicious links.
“Artificial intelligence (AI) has also made these scams even more convincing by enabling cybercriminals to tailor phishing messages to individual behavior, making them seem more credible.”
Why is the online gambling space so attractive to people attempting this fraud? Simply put, “there’s gold in them thar hills.”
The nature of online gambling makes it attractive to scammers
Like many legitimate businesses, people who perform this fraudulent activity have limited resources. Therefore, they want to give themselves the best chance of getting the information and/or money they target.
“Online gambling scams tend to be targeted at users because of the financial nature of the platforms,” Clay continued. “Scammers know that gambling involves frequent money transfers and that users may be more willing to make quick financial decisions. They’re likely to come across them on platforms they use for gambling advice, tips, or insights, therefore may be much more strategic in their location.”
Clay further holds that people who gamble online frequently are more likely to become targets of fraud attempts than people who do so less often.
“Their frequent interaction with gambling platforms, both online and offline, increases their exposure to phishing attempts, fraudulent promotions, and other types of scams,” Clay said. “Regular players are also more likely to look for new opportunities or promotions, which can lead them to inadvertently engage with fraudulent sites or services.
“Scammers often tailor their schemes to mimic the look and feel of legitimate gambling platforms, making it easier to deceive regular players.”
The problem isn’t just a volume issue. Millions of attempts at defrauding online gamblers would be much less effective if they were poor in quality. The other part of this quandary is that quality.
Technology giveth and taketh away
While some people are using AI to protect consumers and track down bad actors online, the same technology can be used for nefarious purposes. Brian New of CBS News Texas breaks down3 how AI is a tool for fraud in dating apps as Sheila Chang of CNBC details4 how Visa uses AI to identify scams.
The refinement of the fraud targeting online gamblers is another vulnerability for players according to Clay.
“Online gambling phishing attempts are becoming more sophisticated, largely because these scams offer direct financial gain, but using AI technology also allows them to make their attacks more convincing,” Clay elaborated. “Scammers are using highly targeted tactics, such as spoofing legitimate gambling platforms and sending personalized emails that mimic official communication.
“The level of sophistication is on par with, if not more advanced than, other types of phishing scams, as attackers know they are dealing with financially motivated users.
“As these scams grow in complexity, it becomes more challenging for the average user to detect fraud without proper security awareness.”
That awareness is the strongest defense for players in terms of not becoming a victim in the first place. There are some technological interventions as well.
Steps to limit your vulnerability
Protecting your information and your money begins with maintaining a cautious approach to your online activity and communications. This means viewing all emails and messages through a skeptical lens.
In many cases, you’re better off assuming an offer is fraudulent until you can verify the source and the terms. A common way to verify those details is to contact the customer service department of the gambling platform you do business with and just ask if they did indeed send you a marketing message and/or if the offer is legitimate.
That has a dual effect of not only protecting your interest but making the gaming company aware of any fraud related to its products. If the correspondence is fraudulent, the company can inform other users of the scam.
Beyond that, there are some general online safety best practices that will protect you in these circumstances as well as many others, like:
- Connect to the Internet through a Virtual Private Network5 (VPN), especially when using a public network
- Consider using third-party digital wallets6 for your legitimate online purchases to shield your banking information
- Do not click/tap on links or download attachments in emails or messages until after you have verified them with the original source
- Never share any personal information until you have verified the recipient
- Use sophisticated and unique passwords then change them regularly
Clay also recommends that people use two-factor authentication7 as much as possible as a layer of protection. Ensuring your software is up to date is also important to have a secure experience according to Clay.
Software programs like Trend Micro Check can act as a sort of “sentry,” helping to filter out fraud before it reaches your attention across numerous communication channels. Finally, Clay recommends that even those who employ such software stay aware of trends in fraud tactics to help them elude such scams.
When you play online casino games, you’re inherently taking a risk in that you might lose your wager. A wary approach to conducting all of your business online can help you ensure that bet is all you are risking.
Sources
- BBB Scam Alert: Betting on a big game? Don’t fall for a sports betting scam ↩︎
- What is Phishing? ↩︎
- How AI is revolutionizing Internet fraud and romance scams ↩︎
- How Visa employed artificial intelligence to check $40 billion in fraud as scammers also take to AI ↩︎
- What Is a Virtual Private Network (VPN)? ↩︎
- What Is a Digital Wallet? ↩︎
- What is Two-Factor Authentication? ↩︎
