Bonuses are vital for attracting and retaining players in iGaming, especially in newly legalized markets where it’s vital to grow your customer base – but they can also attract fraud and abuse. To underscore just how large this problem is for an industry, we saw iGaming bonus abuse reports rise 72% in 2019 alone, and bonus abuse was the number one reported fraud by our iGaming customers for the third year in a row.
As a result, many iGaming operators are limiting new player deposits and deposit methods to minimize losses, diluting the value of customer acquisition and retention programs. This is why it’s so important to implement robust iGaming fraud prevention controls to safeguard your player acquisition and retention programs, in order to confidently grow revenue.
Recognize good players from their first visit
One of the most effective methods of decreasing iGaming bonus abuse – especially for new customer acquisition programs – is to use predictive machine learning that recognizes trustworthy customers in real time. Trained on millions of confirmed fraud reports submitted by fraud experts, our adaptive, real-time algorithm scores the trustworthiness of transactions. This means that you can decide whether to allow new customers to set up a new account or whether to send them targeted bonuses with a high level of confidence.
Target your best iGaming players
Another key component to maximizing the value of your bonuses is to improve your targeting. Device-based authentication allows you to identify devices associated with good customers and target your bonuses accordingly, maximizing the value of your incentives.
With device-based authentication, consumers can register known, safe devices to their accounts. Then when a player logs in, you can check if the device being used is authorized for that account, or if it exhibits risk signals such as geolocation anomalies, data inconsistencies or evasion methods. If the player is in fact using a registered device, you can grant instant account access and offer higher deposit limits. You gain confidence that your bonuses are being sent to known good players, and your players benefit from a better play experience.
New to you, but not to others
Collaboration is another key component in preventing bonus abuse. Wouldn’t you want to know if a device had been associated with past bonus abuse at your site or another iGaming site before the consumer sets up a new account or is offered an incentive? We can help with that.
In the past year, we’ve received over 7 million reports of bonus abuse from our network of 35,000 brands that we protect globally. Our iGaming fraud prevention solutions allow you to place fraud and abuse reports on either an account or a device, with each report providing granular details about the type of fraud, the industry in which fraud took place, when it occurred, and all of the accounts and devices associated with the implicated account or device. All of this provides insights to help you decide if you should prevent a device from taking advantage of a bonus, even if it’s the first time you’ve seen it.
So many accounts, so little time
Another key indicator of online gambling bonus abuse is unusual velocities. For example, if a single device has set up 100 new accounts in an hour, or only takes nine seconds to fill out a complex form, you’re likely looking at abnormal consumer behavior that requires further investigation. Device intelligence lets you monitor transactions for abnormal device and account velocities, and more quickly shut down bonus abuse.
The importance of bonuses in driving customer acquisition can’t be overstated, which is why it’s important to protect against abuse that can dilute the value of your online gambling programs.
To learn more, download our full 2020 iGaming Industry Report, which provides insights into iGaming fraud and how to build player trust. And check out our upcoming webinar, where we’ll take a closer look at bonus abuse trends and how to protect your business.