Looking for the best blog on sports betting fraud prevention? You’ve come to the right place: look no further. This blog covers all the essential aspects of sports betting fraud, and much more.
Want to delve deeper into the topic and get exclusive insights?
Read on to find out everything.
Also read: The Best Sports Betting Apps in 2025
Sports Betting Fraud: A Growing Concern
Studies, forecasts, and the widespread transition from manual processes to automation point to a bright future for the sports betting industry.
Studies indicate that between 2024 and 2032, the use of betting apps will experience exponential growth. Market Research Future even estimates that the market will reach a size of approximately $173.87 billion by 2032.
However , the more the market flourishes and attracts investors and players, the more it becomes a prime target for fraudsters.
Common Types of Sports Betting Fraud and Their Impacts
Online gambling fraud encompasses all illegal activities aimed at defrauding or misleading players and betting platforms. It also encompasses any actions by fraudsters that violate the rules governing online gambling.
Among the most common types of fraud are:
1. Account Takeover Fraud
This is a very common form of fraud on sports betting apps and sites. It occurs when a third party gains access to your betting account, usually by stealing your login details through social engineering or phishing scams.
The consequences can be serious: loss of funds and theft of the user’s personal information.
Find out why AI-powered quality assurance is the future of iGaming
2. Prevention of Account Takeover Fraud
Here are some of the important measures to prevent this type of fraud:
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Use strong passwords
According to Microsoft Support, a strong password should be at least 14 characters long . It should combine uppercase letters, lowercase letters, numbers, and symbols .
It is strongly discouraged, and not a good practice, to use personal names, dates of birth, or names of products, cities, or organizations as passwords.
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Enable multi-factor authentication
Another essential method to prevent fraud on sports betting sites is the implementation of multi-factor authentication .
In practical terms, this means that you need more than just a password to log in to your betting app. This can include verification via SMS, email, WhatsApp , or even using authentication apps like Google Authenticator .
It’s a simple step that adds a massive security barrier to protect your account.
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Regularly monitor your account activities
Prevention of takeover fraud can also rely on regular monitoring of account activities .
Users can implement control measures themselves. A simple and effective method is, for example, to set up email notifications to be alerted each time a new login is made.
Stay vigilant: this habit allows you to detect any suspicious activity in real time.
3. The Sports Betting Bonus Scam
Also known as promotion fraud , this scam occurs when a user maliciously exploits the terms and conditions of bonus offers.
The fraudster seeks a promotional offer and takes unfair and excessive advantage of it. For example, a malicious user may open and hold multiple accounts to take advantage of the same offer multiple times.
Prevention of Bonus Fraud in Sports Betting
The most effective preventive measure against this fraud lies primarily with betting operators . They must impose certain limitations, such as restricting bonuses by IP address .
Beyond this measure already implemented, it is crucial that they deploy modern technologies allowing automatic monitoring of players’ activities .
4. Bank Card Fraud in Online Betting
Another common form of fraud in online gambling is credit card fraud . This scam is very common in sports betting, as many fraud attempts specifically target the theft of bank details.
Once they get their hands on their victim’s card details, fraudsters use them to make unauthorized deposits or withdrawals .
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Bank Card Fraud Prevention
As soon as a user suspects malicious activity or unauthorized login to their betting account, it is imperative to act quickly: they must report the problem to the platform administrator and contact their bank to block transactions on their card.
5. Fraud by Robots (Bots) in Online Betting
Here’s how this other, major, sports betting scam works.
Betting apps are designed for humans to sign up, fill in their information, and use the platform to bet.
However, some people create or deploy robots (bots) or scripts to fully automate their betting process . These bots can infiltrate certain aspects of betting, such as virtual sports betting, to study the algorithms and find ways to cheat the system.
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Preventing Robot Fraud in Sports Betting
Here’s how sports betting platforms can counter this type of fraud: by deploying advanced bot detection tools .
As soon as these bots and the accounts they are linked to are identified, operators immediately suspend them . This rapid response is crucial to protect the integrity of betting and ensure a fair experience for all players.
Sports Betting Fraud Prevention Strategies
The massive expansion of online gambling across the globe makes the need for robust strategies to prevent fraud in sports betting more critical than ever. Let’s examine some essential approaches to counter this scourge.
1. Understanding the Sports Betting Fraud Landscape
Sports betting fraud takes many forms. It can range from sophisticated schemes exploiting regulatory loopholes to simple scams on betting apps. The rise of online platforms has only increased these risks, making vigilance and proactivity crucial for all stakeholders.
But to do this, they must first acquire reliable knowledge of the nature, trends, and solutions surrounding fraud. Understanding the landscape as a whole will provide them with the insights needed to shape effective and preventative solutions .
2. Leverage Advanced Technology to Detect and Prevent Fraud
One of the most powerful strategies for preventing fraud is leveraging cutting-edge technology . Operators are investing heavily in three key areas to achieve optimal results:
- Machine learning algorithms that analyze users’ ever-changing betting habits.
- Real-time monitoring systems that effectively flag any suspicious activity in applications, enabling rapid intervention.
- The deployment of artificial intelligence (AI) tools to predict and prevent fraudulent behavior.
These modern technologies allow operators to implement innovative anti-fraud solutions .
These tools can also collect and analyze huge volumes of data at impressive speeds, and automatically. This allows them to easily identify potential threats and take appropriate action at the right time , before the situation escalates.
3. Transparency and Building Trust in the Paris Ecosystem
In this regard, communication plays an essential role in the fight against online fraud.
Therefore, all online betting platforms must:
- Establish clear communication channels and implement effective procedures to deal with suspicious transactions.
- Invest in information monitoring , obtain the latest security updates and make them accessible to their teams and customers.
Finally, it is crucial to design educational resources for users based on available fraud prevention information. At a minimum, the majority of users should be informed about common scams and how to avoid them.
By implementing all these points, operators can create transparent and trustworthy platforms . And where there is transparency, they easily build trust by empowering users to protect themselves from various frauds and scams.
4. Collaboration between the Platforms and the Sports Betting Providers
In any online business targeted by scams and fraudsters, collaboration is essential to overcome challenges.
Synergy strengthens industries against different types of fraud, and the sports betting industry is no exception.
As fraud risks affect the entire industry, platform providers and operators must join forces to achieve three crucial objectives:
- Sharing information between regulatory bodies and operators
- Joint efforts to develop best practices in fraud prevention
- Sector-specific initiatives to raise awareness of emerging threats
When strong collaboration is established between stakeholders and major industry players, they can create a resilient ecosystem . An ecosystem that is efficient and strong enough to stand up to fraud in sports betting.
5. Raising Awareness of Online Players on Fraud Prevention
We believe this is an essential requirement and an extremely effective strategy for detecting and preventing fraud.
Sometimes app development companies and operators do a remarkable job in providing users with secure apps, equipped with all the necessary anti-scam tools.
However, users are not always well informed about prevention strategies. Some even ignore security basics, such as using a strong password, never sharing login details, and never sharing credit card details.
The solution to this challenge is to invest in educating users on key topics related to sports betting security.
Topics covered should revolve around fraud detection and prevention techniques , while providing resources that educate users about their own role in protecting their devices and accounts.
These resources should also cover: common scams, identifying suspicious betting offers, and the critical importance of only using licensed and regulated platforms.
In short, knowledge is power. An informed user is able to make informed decisions and avoid potential pitfalls in the world of sports betting.
Technology to Help Prevent Fraud in Sports Betting
As the sports betting world continues to grow and evolve, technology will continue to play a crucial role in various areas. One of its major roles is fraud detection and prevention to protect both users and operators.
But what are these technologies?
1. Blockchain Technology and Transparency
Blockchain is one of the most significant advancements in the modern online gaming industry, and it carries the banner of transparency high . In the betting sector, it offers a decentralized ledger where all transactions are recorded in a tamper-proof manner .
This technology makes it easier to monitor all fraudulent activities, as it becomes extremely difficult for them to go unnoticed. The transparency that blockchain brings to sports betting helps build trust among customers, as anyone can verify its operation.
This makes it an effective technology that helps deter potential fraudsters from attempting to manipulate the system.
2. Machine Learning Algorithms
Another crucial technology for fraud prevention is the Machine Learning algorithm . These are modern tools that automate fraud detection on sports betting sites and applications. Machine Learning frees human teams from this tedious task and performs a much more efficient job.
It can be monitored 24/7 . It continuously collects data on user behavior and is able to automatically detect any suspicious activity.
As soon as it identifies any suspicious activity on the betting app, for any reason that poses a security threat, it takes immediate action to neutralize the threat.
3. AI in Sports Betting Security Systems
After Machine Learning algorithms, let’s take a look at Artificial Intelligence (AI) . While these technologies can work together excellently towards a common goal, AI plays an absolutely crucial role in the security of sports betting apps thanks to predictive analytics .
It makes its predictions by studying the application’s various systems and structures to anticipate potential threats . It can be said that it tracks down flaws and weaknesses that could be exploited, and alerts the relevant teams for early intervention.
This operation saves costs and prevents fraud from escalating into a much more serious and damaging incident for the betting platform and operators.
4. Biometric Verification Methods
All these new smart devices now incorporate biometric verification features to enhance security and prevent fraud. This technology ensures that no one but you can log into your betting app without using your fingerprint.
With biometrics, only the true account owner can access the app, place bets, make deposits, or withdraw funds. Biometric technology relies on unique physical characteristics —like fingerprints or facial recognition—to verify identities with unparalleled accuracy .
What can Promisseur do for you?
At Prometteur, we develop the best sports betting apps , equipped with all the technological tools necessary for fraud prevention. Wait! We don’t just include them; we explore the best methods to ensure the security of your users and your platform.
So, if you own a sports betting app and want to conduct an audit, test your security posture, or strengthen your fight against fraud, we can help. We also offer specialized security services for betting apps to assist you in fraud detection and prevention .