The Rising Tide of Fraud in iGaming: A Call for Action
June 25, 2025, 6:15 pm
The world of iGaming is a double-edged sword. On one side, it offers thrilling entertainment and the chance to win big. On the other, it faces a relentless wave of fraud. A recent report from Sumsub reveals that 83% of iGaming operators have encountered increased fraud in the past year. This alarming statistic paints a picture of an industry grappling with sophisticated threats and evolving challenges.
Fraud in iGaming is not a new phenomenon. However, the landscape is changing rapidly. Latin America has seen the steepest rise in fraud rates, with a staggering 32% increase. In contrast, Africa recorded a drop in fraud, showcasing the uneven nature of this battle. The deposit stage has emerged as the most targeted point in the user journey, highlighting a shift in tactics. Operators must now fortify their defenses at this critical juncture.
The report also sheds light on the growing prevalence of AI-generated fake documents. A staggering 78% of operators reported encountering this new breed of fraud. It’s as if fraudsters have upgraded their toolkit, using advanced technology to create convincing forgeries. This trend is not just a minor nuisance; it’s a significant threat that demands immediate attention.
Timing is everything in the world of fraud. The report reveals that most fraudulent activities occur between 4-8 a.m., a time when compliance teams are often offline. This peak in attacks underscores the need for 24/7 automated anti-fraud systems. The dawn of a new day should not be a time of vulnerability for operators.
Regionally, the statistics tell a compelling story. Latin America’s fraud rate jumped from 0.88% in 2024 to 1.16% in 2025. Meanwhile, Africa saw a decrease from 2.99% to 2.55%. Europe and North America also experienced slight increases, indicating that fraud is a global issue. Operators must adapt to these regional shifts and tailor their strategies accordingly.
Fraud schemes are becoming more sophisticated. Identity fraud, money laundering, and bonus abuse are the top three threats identified by operators. Payments fraud and account takeovers follow closely behind. The complexity of these schemes requires a multi-layered approach to fraud prevention. Operators must not only identify threats but also anticipate them.
The rise of AI-powered fraud is particularly concerning. Deepfake technology is now being used to create synthetic identities, making it harder for operators to distinguish between legitimate users and fraudsters. The report highlights a staggering 700% global increase in deepfake fraud between Q1 2024 and Q1 2025. This surge is a wake-up call for the industry. Operators must invest in advanced verification technologies to stay one step ahead.
Speed is of the essence in the fight against fraud. The average verification time across the industry has decreased from 32 seconds in 2023 to just 25 seconds in 2025. This improvement translates into better conversion rates and higher retention. Solutions like Non-Doc Verification and Reusable KYC are helping operators streamline their onboarding processes. These innovations are not just about speed; they are about creating a seamless user experience.
However, technology alone is not enough. Operators must adopt a holistic approach to fraud prevention. This includes training staff, implementing robust compliance measures, and fostering a culture of vigilance. The stakes are high, and the cost of inaction is steep.
Compliance is another pressing issue. Nearly 30% of operators find it challenging to keep up with new regulations. As jurisdictions tighten their requirements, operators must adapt quickly. Brazil’s transition from a grey market to a regulated one is a prime example. The introduction of biometric onboarding and stringent penalties for non-compliance underscores the need for operators to stay informed and agile.
The regulatory landscape is evolving across the globe. In Europe, the UK is leading the charge with affordability checks and advertising restrictions. Meanwhile, countries in Asia are refining their regulatory frameworks. Operators must navigate this complex terrain while ensuring they meet compliance standards.
In conclusion, the iGaming industry stands at a crossroads. The rise in fraud is a clarion call for action. Operators must invest in advanced technologies, streamline their processes, and foster a culture of compliance. The battle against fraud is not just about protecting profits; it’s about safeguarding the integrity of the industry. As the tide of fraud rises, the time for decisive action is now. The future of iGaming depends on it.
Fraud in iGaming is not a new phenomenon. However, the landscape is changing rapidly. Latin America has seen the steepest rise in fraud rates, with a staggering 32% increase. In contrast, Africa recorded a drop in fraud, showcasing the uneven nature of this battle. The deposit stage has emerged as the most targeted point in the user journey, highlighting a shift in tactics. Operators must now fortify their defenses at this critical juncture.
The report also sheds light on the growing prevalence of AI-generated fake documents. A staggering 78% of operators reported encountering this new breed of fraud. It’s as if fraudsters have upgraded their toolkit, using advanced technology to create convincing forgeries. This trend is not just a minor nuisance; it’s a significant threat that demands immediate attention.
Timing is everything in the world of fraud. The report reveals that most fraudulent activities occur between 4-8 a.m., a time when compliance teams are often offline. This peak in attacks underscores the need for 24/7 automated anti-fraud systems. The dawn of a new day should not be a time of vulnerability for operators.
Regionally, the statistics tell a compelling story. Latin America’s fraud rate jumped from 0.88% in 2024 to 1.16% in 2025. Meanwhile, Africa saw a decrease from 2.99% to 2.55%. Europe and North America also experienced slight increases, indicating that fraud is a global issue. Operators must adapt to these regional shifts and tailor their strategies accordingly.
Fraud schemes are becoming more sophisticated. Identity fraud, money laundering, and bonus abuse are the top three threats identified by operators. Payments fraud and account takeovers follow closely behind. The complexity of these schemes requires a multi-layered approach to fraud prevention. Operators must not only identify threats but also anticipate them.
The rise of AI-powered fraud is particularly concerning. Deepfake technology is now being used to create synthetic identities, making it harder for operators to distinguish between legitimate users and fraudsters. The report highlights a staggering 700% global increase in deepfake fraud between Q1 2024 and Q1 2025. This surge is a wake-up call for the industry. Operators must invest in advanced verification technologies to stay one step ahead.
Speed is of the essence in the fight against fraud. The average verification time across the industry has decreased from 32 seconds in 2023 to just 25 seconds in 2025. This improvement translates into better conversion rates and higher retention. Solutions like Non-Doc Verification and Reusable KYC are helping operators streamline their onboarding processes. These innovations are not just about speed; they are about creating a seamless user experience.
However, technology alone is not enough. Operators must adopt a holistic approach to fraud prevention. This includes training staff, implementing robust compliance measures, and fostering a culture of vigilance. The stakes are high, and the cost of inaction is steep.
Compliance is another pressing issue. Nearly 30% of operators find it challenging to keep up with new regulations. As jurisdictions tighten their requirements, operators must adapt quickly. Brazil’s transition from a grey market to a regulated one is a prime example. The introduction of biometric onboarding and stringent penalties for non-compliance underscores the need for operators to stay informed and agile.
The regulatory landscape is evolving across the globe. In Europe, the UK is leading the charge with affordability checks and advertising restrictions. Meanwhile, countries in Asia are refining their regulatory frameworks. Operators must navigate this complex terrain while ensuring they meet compliance standards.
In conclusion, the iGaming industry stands at a crossroads. The rise in fraud is a clarion call for action. Operators must invest in advanced technologies, streamline their processes, and foster a culture of compliance. The battle against fraud is not just about protecting profits; it’s about safeguarding the integrity of the industry. As the tide of fraud rises, the time for decisive action is now. The future of iGaming depends on it.