iGaming Fraud: Common Threats and How to Prevent Them

Running an iGaming business can give you a high profit, but if you stay one step ahead of fraud. In the iGaming space, there are millions of transactions, user activity that take place daily. And fraudsters are trying to take advantage of the iGaming platform through their illegal activities.

Whether it is fake signups, bonus abuse, or affiliate manipulation, iGaming fraud can drain your revenue and damage your brand’s reputation. 

In this blog, you will explore the most common types of fraud in the iGaming industry and provide practical strategies for iGaming fraud prevention. Whether you’re an operator, affiliate manager, or platform provider, understanding these threats is the first step toward safeguarding your business.

What is iGaming Fraud?

iGaming fraud means any kind of cheating or dishonest activity done to take unfair advantage of an iGaming platform and make money from it. This fraud can be done by any person, whether it is a player, affiliate, or any other person. Instead of stealing data like in regular hacking, iGaming fraud usually targets things like bonus offers, game loopholes, or tracking systems to earn money in ways that aren’t allowed.

Why is iGaming Fraud Increasing?

Fraud is becoming more common in the iGaming space due to several factors:

• Rapid digital expansion: More users mean more opportunities for fraudulent activity.
  
• Attractive bonuses: Promotions are easy targets for abuse.
  
• Affiliate-driven growth: Many platforms rely on third parties to bring in users, increasing the risk of iGaming affiliate fraud.
  
• Cross-border transactions: Global access makes it difficult to verify user identity or track payment behavior.

Some Common Types of iGaming Fraud

Let’s break down some of the most common types of fraud in the iGaming space:

1. Bonus Abuse Fraud

In this type of fraud, fraudsters exploit sign-up or deposit bonuses using multiple fake accounts. They often use VPNs and identity-masking tools to bypass IP restrictions and verification.

2. Chargeback Fraud

It is also known as friendly fraud; this occurs when a player deposits money, plays, and then contacts the bank to reverse the charge. The iGaming operator loses both the deposit and potential winnings.

3. Affiliate Fraud

One of the most damaging and complex types of iGaming fraud, this involves affiliates manipulating traffic data to earn unearned commissions.

Examples include:

• Fake registrations
• Bots driving traffic
• Cookie stuffing
• Self-referrals

This form of iGaming affiliate fraud not only wastes marketing budget but also distorts performance data, making it hard to identify genuine users.

4. Multi-Accounting Fraud

Fraudsters are using multiple accounts to gain unfair advantages, whether to throw off game odds, access multiple bonuses, or manipulate peer-to-peer games.

5. Account Takeover

Cybercriminals use stolen credentials to access real user accounts, drain wallets, or transfer funds. These attacks often come from data leaks or phishing attempts.

What Happens if You Ignore iGaming Fraud

iGaming fraud is not just a simple problem. It can lead to:

• Lost revenue
• Legal penalties (especially in regulated markets)
• Brand damage from negative publicity
• Reduced trust among players and partners
• Platform bans or restrictions from payment processors or regulators

Here are some iGaming Fraud Prevention Strategies

Here’s how operators can stay ahead of fraudsters:

1. Implement Strong KYC & AML Practices

Know Your Customer (KYC) and Anti-Money Laundering (AML) checks help verify player identities and track suspicious behavior. Use automated tools to verify documents and detect inconsistencies.

2. Use AI-Powered Fraud Detection

Machine learning tools can monitor user behavior in real time, flagging unusual patterns like rapid deposits, multiple IPs, or inconsistent geolocation.

3. Deploy Multi-Factor Authentication (MFA)

MFA adds a layer of protection to user accounts, reducing the risk of account takeovers.

4. Track Affiliate Behavior with Anti-Fraud Tools

Affiliate fraud is particularly hard to spot without the right tracking software. Platforms like Affnook offer intelligent traffic monitoring and fraud detection features designed specifically for iGaming affiliate fraud. You can instantly flag suspicious referrals, duplicate signups, or performance anomalies across affiliate networks.

5. Geo-Restrictions and IP Tracking

Limit access based on geolocation and flag accounts accessing from multiple regions within short timeframes.

6. Limit Bonus Eligibility

Add caps, time limits, and verification steps to bonus programs to reduce abuse. For example, tie welcome bonuses to verified bank accounts or require longer play-through periods.

7. Regular Audits

Conduct regular system and performance audits to detect anomalies. Analyze affiliate reports and traffic quality frequently to spot red flags.

How Affnook Helps Keep iGaming Safe from Fraud

Affnook, a robust affiliate tracking and performance marketing platform, is built with fraud prevention in mind. It empowers iGaming businesses to:

• Track real-time affiliate activity
• Detect traffic spikes and bot patterns
• Eliminate duplicate signups
• Monitor click-to-conversion times for suspicious delays

With customizable fraud detection settings and in-depth analytics, it gives you the control you need to grow without being exposed to affiliate scams.

Conclusion 

Fraud in iGaming isn’t going away—but with the right tools and strategies, you can protect your platform and your profits. From bonus abuse to iGaming affiliate fraud, being proactive is the key to staying secure.

Platforms like Affnook not only streamline affiliate management but also act as a first line of defense against fraud. The more transparent and secure your operations are, the more trust you’ll earn from both players and partners.

iGaming fraud may be an inevitable part of the industry, but with vigilance and smart prevention tactics, you can keep it under control.