The online gambling market is undeniably booming. However, this exponential growth also fostered an environment for hackers to target betting sites and players. Even though gambling companies follow various security measures, they sometimes face fraudulent attacks.
The solution lies in Artificial Intelligence (AI) to safeguard the business. Gambling companies can monitor the casino experience of every user with the help of AI-powered systems.
What Is Online Gambling Fraud?
A cybercriminal misuses or manipulates a virtual betting platform to carry out illegal activities for their gain. They use various advanced techniques to steal valuable user data. Common online scams in this industry include:
- Accessing a player’s account credentials through brute force attacks
- Multi-account fraud to improve the winning chances (often in poker)
- DDoS attacks to crash a gambling site
- Third-party misuse of customer data
- Using stolen bank or credit card details to place bets
Role of AI in Online Fraud Detection
As per digital fraud analysis by TransUnion, online betting identity fraud increased by 50.1% in the first quarter of 2022. High fraud levels and chargeback disputes impact the revenue and credibility of online gambling sites. To eliminate the risk of cyberattacks, iGaming companies use advanced security systems.
Hence, Artificial Intelligence is emerging as a critical solution to curb various online scams.
Leveraging AI to detect fraud can enhance internal security and simplify operations for gambling sites. AI models can instantly flag an account or reject transactions on detecting any fraudulent activity.
On the other hand, auditing authorities use AI to test the RNG (Random Number Generator) of slot games. It helps evaluate if the game’s outcomes are truly random to ensure casinos like Chumba provide a fair gambling chance to everyone.
AI Solutions To Upgrade Security While Gambling
The possibilities of AI security systems are endless for the gambling sector to perform better and improve customer experience. Check out the top AI tools and software integrated into betting sites.
● Data Analytics
By analyzing a large dataset, ML models can uncover fraud patterns that protect casinos from real-time security breaches. Algorithms can also detect customer spending behavior to protect them from gambling addiction.
● Blockchain
Blockchain technology is a decentralized solution that provides a transparent and anonymous betting experience. Transactions made using cryptocurrencies are virtually impossible to hack. Hence, nobody can steal sensitive user data during the deposit or withdrawal process.
● Biometric Authentication
Online casinos can easily detect fraudsters using biometric authentication technology like facial recognition and fingerprint. This security system helps operators know if an unauthorized and suspicious person is trying to access a user account.
● Chatbots
The automated chatbots can quickly understand and resolve the common issues of gamblers. It leaves enough time for the human support team to address more complex problems.
How Does AI Protect Gamblers?
The benefits of AI solutions are beyond the iGaming operators. It also creates a secure gambling environment for the players. That said, gamblers can unhesitatingly initiate payments without risking their personal and financial data.
Further, every casino platform is susceptible to problem gamblers. ML models enable betting site operators to conduct a risk assessment for all the players. With AI-trained systems, they can spot signs of addiction like chasing losses, placing high-risk bets, uncontrollable betting urges, and playing for long hours. Thus, AI can promote responsible gaming by recognizing the gambling disorder in a player.
Operators can create a personalized, positive betting experience for risky players. For instance, sportsbooks can restrict punters after a specific number of losses on noticing signs of problem gambling.
FAQs
- How is AI used in gambling?
AI-trained models enable online casino platforms to identify risky betting patterns in players of all ages. Tracking player behavior can assist gambling companies in flagging players with potential gambling problems. Moreover, operators can protect players from data breach issues with early detection.
- Can AI detect criminals?
Yes, gambling companies can detect potential criminal activities with AI technology. It includes cyber fraud, terrorist financing, and money laundering.
- Which AI algorithm is used for fraud detection?
AI algorithms generally use a logistic regression learning method for fraud detection. This supervised learning technique shows the result as either ‘fraud’ or ‘non-fraud’ activity during transactions.
Bottom Line
Undoubtedly, Artificial Intelligence can be a game-changer for the online gambling industry. From fraud detection to responsible gaming, AI technology is a one-stop solution for operators to protect their businesses and customers.
Online betting companies that go the extra mile can build healthy, long-term customer relationships. In a nutshell, leveraging AI systems will immensely improve the overall player experience by adding an extra layer of security.