Fraudsters and fraud fighters, armed with their wits and ever-sharpening tactics, wage an eternal battle. Fraudsters exploit new vulnerabilities. Fraud fighters shut them down.

Push and pull. Ebb and flow.

This is especially the case for the online gambling industry, which handles deposits, transfers and payouts all on one site. It's no wonder that online criminals flock there like summer vacationers going to the beach.

To make matters even more complicated, fraudsters have learned to manipulate regulations and services designed to serve and protect honest players.

Fraudsters try to game regulators, too.
Take PlayCherry Limited for an example. With offices in Malta, the operator of seven online gambling properties must remain in good standing with the Malta Gaming Authority (MGA). In addition to regulating and licensing online gambling operators, the MGA judges disputes between players and operators about paying out winnings.

PlayCherry has no problem paying out to honest players. But once fraudsters cheat the operator’s games, they know to complain quickly and loudly to the MGA in order to compel an ill-gotten pay out. The bigger the ‘stink’ raised by the fraudsters, so they hope, the more pressured PlayCherry will feel to pay out unrecoverable winnings.

E-wallet services used as unwitting accomplices.
Consider also e-wallet services. Players choose to use these services for a variety of reasons: privacy, convenience, etc. E-wallet services take some of the burden of payment processing from online gambling operators; they guarantee players have funds, offer varying levels of indemnification, and so on.

Here too, fraudsters have learned how to take advantage of a service designed for honest players. They create e-wallet profiles to enter gambling sites like PlayCherry’s, even if they’ve been banned from these sites.

Since players may register an account with a verified e-wallet, there’s no reason for PlayCherry to stop them. When the fraudster is discovered cheating, PlayCherry withholds the winnings while they review the account. Fraudsters complain quickly to the Malta Gaming Authority (MGA) to try to force a pay out, says Magdalena Gniadzik-Johansson, PlayCherry’s Head of Payments and Fraud. “With enough time, accounts and patience, they could win big.”

PlayCherry fights the tide of fraud with iovation.
How does PlayCherry win their case before the MGA, and keep fraudsters from accessing their online gambling properties? With iovation’s industry-leading device reputation technology.

“Thanks in large part to the evidence collected from iovation, MGA tends to side with us,” says Johansson. “A single case could easily be worth €20k, 30k, 50k.”

Read the PlayCherry case study to discover how the online gambling operator harnesses iovation to defend itself against sophisticated fraudsters.