Alarming Rise in Digital Fraud
Digital fraud continues to escalate within the online gambling realm, as indicated by a recent TransUnion report. The study uncovered that more than 10% of online gambling transactions in the United States were suspected to involve fraudulent activities in 2023, signifying a significant uptick compared to previous years.
Predominance of Promotion Abuse
The TransUnion report pinpointed promotion abuse as the prevailing form of fraud within the gambling sector. This form of fraud entails exploiting promotional offers and bonuses provided by online casinos and sports betting platforms. Fraudsters have shifted their tactics, now opting to create new accounts using synthetic identities rather than compromising existing ones.
Impact of Economic Conditions
Moreover, TransUnion's research shed light on how economic factors influence gambling behavior. Despite the overall resilience of the US economy, declining consumer liquidity and low consumer confidence have dampened gambling activity. However, millennials seem to be an exception, with 77% reporting better-than-planned household finances.
Strategies for Operators
TransUnion emphasized the importance of operators understanding financial signals to attract high-value bettors. While land-based channels witnessed higher participation rates, online platforms attracted more high-value bettors, especially those depositing over $500 monthly. Strategies focusing on expanding across channels have proven successful despite an overall decrease in participation.