While digital fraud seems to have decreased, overall, quite significantly, according to TransUnion, compared to the same quarter in 2021 – the gambling sector has unfortunately not reported the same. According to Gambling News, the: “US-based consumer credit reporting agency” established in their digital fraud report that overall digital fraud has decreased in the US by 26% compared to the same quarter last year. Gambling fraud has, however, increased by just over 50%.
Unfortunately for many consumers involved with online gambling – scams and fraudulent operators have seen the industry, according to Gambling News, a rate second highest in its increase in fraud rate, only to insurance fraud. This article will discuss why this is and how it affects gamblers, the state, and consumers alike. Let us start by looking at the study conducted by the US-based consumer reporting agency – TransUnion in more detail.
TransUnion’s Report In More Detail
According to Gambling News, TransUnion conducted a study to analyze the increase or decrease in the levels of fraud in the digital sector.
The study showed internationally (using a sample of just over 10,000 people) digital fraud increased by 2% in the last quarter to 38% from 36%, respectively. In the US – such fraud is down by just over a quarter. The gambling sector has reported an increase in digital fraud of 50.1% however.
Why Has The Digital Gambling Sectors Fraud Rate Increased By So Much?
According to Gambling News, the study revealed that, as usual, the most common forms of fraud include phishing scams and scams on ‘legitimate’ online retail sites. While, these forms of fraud have undoubtedly been around for some time now, the question of why the digital gambling sector has seen such an increase in its fraud rate still remains to be answered.
One of the reasons according to the gambling news site – and as taken from one of Shai Cohen, TransUnion’s senior vice president of global fraud solutions – is that: “criminals might be more focused now on new industries such as the gambling sector.” For this reason, it seems like the online gambling sector – which is reasonably young (according to Wikipedia, the first form of online gambling took place in 1994), is being targeted by scammers and fraudsters. Like other criminals, they are opportunistic by nature – and the newly emerging global online or digital gambling market, with its lack of legislation and governing authorities – lends itself to such individuals and scammers alike.
How Does Such Fraud Effect The Consumer Or Gambler And The State?
To begin answering this question consumers, legitimate companies, and the state alike lose out on a massive amount of revenue – and potential revenue when fraud is involved. Legitimate Casinos that pay for gambling licenses are affected – as also unsuspecting consumers are. For this reason, it is always imperative to make sure that the site or casino you are using is legitimate. If you do not, you can not make sure that:
- You will be able to withdraw your winnings
- You will not fall prey to various forms of digital fraud like identity theft.
It is also imperative that you know the laws and legislation surrounding gambling and betting online or online gambling in the county or state you reside. Furthermore, being aware of the types of gambling scams or fraud that scammers and fraudsters employ is paramount. Two of the most famous are players using multiple accounts – especially when it comes to poker and fraudsters who take advantage of stolen credit card details. Both of these forms of gambling fraud, according to Grip Advisory, are scams that individual gamblers and online casinos alike fall prey to.
If you have enjoyed this article be sure to read: Is Online Gambling Illegal? Everything You Need To Know About Online Casinos
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