What is Fraud Prevention?

Definition: Tools, processes, and rules used to detect and stop unauthorized or abusive activity-such as stolen cards, account takeover, promotion abuse, multi‑accounting, collusion, or money laundering behaviors.

Typical fraud types in gambling:

Card-not-present fraud: stolen card details used to deposit.
Account takeover (ATO): hijacked player accounts.
Identity fraud: using fake or stolen identities.

Common fraud prevention techniques:

Risk scoring: real-time evaluation of deposits/payouts/logins.
Device fingerprinting & IP analysis: identifying suspicious devices, VPN/proxy usage.
Velocity rules: limiting rapid repeats (e.g., many deposits in minutes).
Behavioral analytics: gameplay and navigation patterns to spot bots/abuse.
Manual review queues: investigation by risk/operations functions.

Outcome: Reduced financial losses, lower chargeback rates, and improved compliance posture.

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Related Terms

Source of Funds / Source of Wealth

Source of funds (SoF) is the origin of the money a player uses for deposits. Source of wealth (SoW) is how the player built up their overall wealth.

Customer Due Diligence (CDD / EDD)

Customer due diligence (CDD) is the set of checks an operator carries out to know who the player is and assess their risk level. Enhanced due diligence (EDD) is a deeper level of checks for higher-risk cases.

Transaction Monitoring

Transaction monitoring is the automated review of player payments and betting activity against rules and thresholds to detect activity that needs a closer look, such as possible money laundering or fraud.

Open Banking

Open banking is a way of sharing bank data and starting payments through secure bank APIs, with the account holder’s consent. In iGaming it is used for account-to-account (A2A) deposits and payouts.

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