Sports betting site fraud: how can you prevent it?

With the growth of online sports betting platforms, the risks of manipulation and fraud are multiplying. They affect not only operators and punters, but also the very integrity of sporting competitions. To counter these malicious practices, it is crucial to anticipate the strategies used by fraudsters. What types of fraud are there on sports betting sites? What regulations are in force? How can they be combated? We take a look with you! 

Fraudulent sports betting sites: the emancipation of the sites 

The emancipation of sports betting sites is a significant phenomenon in the world of online gambling. Over the years, these platforms have evolved from simple betting sites into ecosystems offering a multitude of services. 

Among these various offers, you will find : 

• A variety of bets on offer A wide range of activities, from football to cricket and tennis. 

• From live betting options Live betting: users can bet while the sporting event is in progress. Some betting sites even offer streaming services that allow users to watch matches directly on the platform.
• From bonus To build user loyalty, sites often offer welcome bonuses, free bets, cashback offers or loyalty programmes.
• From mobile applications Most of the major online betting sites have dedicated mobile applications. 
• From tools and resourcesTo help users make informed decisions, online betting sites provide detailed statistics, expert analysis, betting tips and bankroll management tools.

To cope with this growth, betting sites are approaching regulatory authorities. Their aim? To guarantee a secure and fair gaming environment and maintain user confidence. 

Who controls sports betting sites? 

L'order no. 2019-1015 of 2 october 2019 reorganises and clarifies the regulation of gambling in France. As of 1 January 2020, this order led to the creation of theNational Gaming Authority (NGA)replacing Arjel.

L'National Gaming Authority (NGA)a independent administrative authorityis responsible for approving online gaming and betting operators. Its scope of action extends to :

• Française Des Jeux and Pari Mutuel Urbain Any new game must now obtain prior authorisation from the ANJ.
• Casinos the ANJ is responsible for combating excessive gambling, while the other aspects of casino regulation remain under the supervision of the Ministry of the Interior.

This authority will strengthen player protection and ensure more effective regulation of gambling in France in order to combat fraud. 

What types of fraud are there on sports betting sites? 

Fraud on sports betting sites has become a major concern with the growth of online betting platforms. 

Fraudsters take advantage of the popularity of sports betting to develop sophisticated schemes. We can categorise fraud into two groups: documentary fraud and non-documentary fraud.

Documentary fraud on sports betting sites 

There document fraud on sports betting sites can take place in several ways.
It generally involves the use of forged documents or stolen identities to fool verification systems and gain access to betting services.

To help you see things more clearly, here are some typical document fraud scenarios!

Credit card fraud 

In some cases, fraudsters use stolen or fraudulently obtained credit cards to make deposits into sports betting accounts. 

If the betting establishment does not verify the user's identity, the fraudster can then bet or withdraw the funds at his convenience. 

Creating multiple accounts 

To get around the deposit limits or restrictions imposed by betting sites, fraudsters can create several accounts. 

How do they do it? They use false identity documents and pretend to be a third party. They submit these false documents during the registration process and this allows them to exceed account limits and manipulate bonus or promotion systems.

Non-documentary fraud on sports betting sites 

There are many fraudulent practices that are not linked to forgery or the use of false documents. Here are a few examples to illustrate the point!

Handling results 

Individuals may attempt to manipulate the results of sporting events in order to guarantee winnings on bets placed. 

This can include actions such as bribing players or hacking into sports data. The interest for the fraudsters is then to collect winnings on the falsified betting results. 

Rigged betting 

People with malicious intent can organise rigged bets. They influence the course of a sporting event to guarantee a specific result. 

The aim? To bring them bigger winnings on their bets.

What regulations apply to sports betting sites? 

Since 1 January 2020, France has introduced strict regulation of online sports betting via the National Gaming Authority (ANJ). 

To operate legally, sports betting operators must obtain a licence issued by the ANJ. There are several conditions for obtaining this licence: 

• The sports betting establishment must have its own company in France or in a Member State of the European Union.
• The sports betting site must prove that it respects the security measures that protect users.

In France today, more than fifteen operators have been approved by the ANJ to offer online sports betting services. 

How can we combat fraud on sports betting sites? 

Combating fraud on sports betting sites requires a multi-dimensional approach combining strict regulation, collaboration between players and advanced technology.

The role of regulators in the fight against fraud 

Regulators, such as the National Gaming Authority (NGA), play a crucial role in the fight against fraud. They impose strict standards and monitor betting operators. 

Raising awareness of fraud risks 

The introduction of reporting channels for suspicious activity can make a major contribution to strengthening the security of sports betting sites. Users have the opportunity to denounce illegal activities spotted on the platforms. 

Cooperation between institutions 

Exchanging information on fraudsters and emerging fraud techniques is necessary to combat the development of these practices. 

Cooperation between national and international authorities creates a safer and more transparent environment for online betting.

Checking the identity of players

Operators need to invest in fraud detection systems capable ofidentify suspicious behaviour in real time. 

The use of artificial intelligence and machine learning is used to monitor transactions and identify unusual patterns. It aims to prevent documentary fraud and account manipulation. 

To find out more about artificial intelligence and the fight against fraud, click here: 3 ways in which AI can be used to detect false documents !

At Finovox, we have created a solution for detecting false documents, available in two formats:

• There API solutionThis makes it easy to integrate information, ensuring seamless compatibility with your existing systems. 
• There SaaS solutionThis allows you to examine the documents in detail and obtain precise explanations of any changes. 

These two solutions are designed to complement each other and offer a fast, effective way of combating document fraud. 

Want to find out more? Finovox: differences between the SaaS solution and the API 

Of course, in addition, enhanced documentary controls are essential to ensure the authenticity of the accounts.

Would you like to find out more about our solution? Contact our fraud experts!