Fraud poses an escalating danger to companies in the iGaming and online gambling. On a global scale, digital fraud rates surged by a staggering 68.6% in iGaming.
Given the high transaction volumes during major sporting events, ever-evolving regulatory landscapes, and the complex challenges associated with breaking into new markets, iGaming operators find themselves in dire need of trustworthy fraud detection mechanisms that create strong confidence in their business expansion efforts.
In this high-stakes background, companies must equip themselves with a robust and tailored fraud prevention solution designed to meet their specific requirements.
Fraud in the iGaming Industry
Fraud in the iGaming industry can take various forms, including stolen credit card information, bonus abuse, identity theft, or even chargebacks from players seeking refunds. To safeguard their financial interests and reputation, iGaming operators must prioritise fraud prevention. However, a common concern is that strict security measures might discourage legitimate players, causing a drop in conversions. Striking the right balance between security and user experience is crucial.
The Cost of Fraud
The financial repercussions of fraud are significant in the iGaming industry. Fraudulent transactions result in direct financial losses, as operators must reimburse players who fall victim to fraud. Additionally, chargebacks can lead to fines and higher processing fees. Many reports highlight that promo abuse alone contributes to a significant portion of fraud-related losses in the online casino sector, emphasising the seriousness of this issue. Beyond the immediate monetary impact, fraud can erode trust among players, which can be even more damaging in the long run. The estimate indicates that businesses experience a $4 impact for every $1 lost to fraud, and this expense is rising annually. Thus, investing in fraud prevention is essential for both short-term stability and long-term growth.
Optimising Security without Sacrificing Conversions
Enhancing security measures can indeed introduce some friction to the deposit process, potentially leading to a drop in conversions. However, a thoughtful approach can mitigate these concerns and even enhance trust, ultimately boosting conversions in the long run:
Streamline User Experience: Focus on optimising the user experience during registration and payment. Make the process as seamless and intuitive as possible to reduce the time and effort required from players.
Communicate the Benefits: Inform players about the security measures in place and how they benefit from them. Stress the importance of a secure environment and the steps taken to protect their information and funds.
Implement Progressive Verification: You can start with basic identity checks during registration and gradually introduce more extensive verifications as the player’s activity and account history grow. This minimises friction during initial registration while increasing security as the relationship with the player deepens.
Benefits of fraud prevention
Financial Asset Security: Shielding against payment fraud reduces financial losses, ensuring stability and reliability for future planning while fostering trust and loyalty for your player’s data protection.
Chargeback Prevention: Fraud protection helps mitigate chargebacks, averting revenue loss, additional fees, and the time-consuming process of resolving disputes and ensures a seamless checkout process.
Reduced Abandoned Carts: A secure deposit experience minimises concerns about fraud, leading to a decrease in abandoned shopping carts and an increase in completed transactions. Thus, contributing to a positive brand image.
Protect your business and players with FERO
As iGaming fraud continues to surge globally, operators need reliable solutions that detect fraudsters without blocking real players. By specialising in the unique needs of iGaming, FERO empowers operators to transform the online checkout and deposit journeys, making them seamless and personalised for players while helping iGaming companies recover lost revenue. See some of the key ways FERO is uniquely positioned to help your business stay secure and personalised as a safe place to play:
Promo Abuse Predictor: FERO’s iGaming promo abuse solution utilises advanced algorithms to identify and prevent fraudulent exploitation of promotional offers and bonuses in the iGaming industry. By staying one step ahead of fraudsters, this tool ensures a fair and secure gaming environment while safeguarding operators from financial losses due to promo abuse.
Payment Method Predictor: With FERO’s Payment Method Predictor, iGaming operators can proactively predict the ideal payment method for each player. This empowers businesses to make informed decisions, optimising their payment processes to reach the right balance between user satisfaction and retention, ultimately enhancing the conversion rate.
Transaction Authentication Booster: FERO’s Transaction Authentication Booster optimises the authentication process, strategically leveraging authentication exemptions to enhance the overall user experience during transactions.
Contact us to learn how FERO can help your iGaming business deliver unique deposit and payment experience, improve player satisfaction, and increase conversion rate.