AI lowers the barrier significantly for fraud in online gambling

The world of online gambling faces a new, sophisticated threat. Mário Cardoso, Fraud & Risk Manager at Portuguese provider Solverde.pt, issues a stern warning about the impact of artificial intelligence (AI) on the fraud landscape. Modern AI technologies significantly lower the barrier to entry for fraudsters, leading to increasingly complex scams.

The discussion with iGaming Expert highlights the critical importance of a truly risk-based approach to Know Your Customer (KYC) procedures and the onboarding process. The industry must adapt its strategies to keep pace with the rapid development of AI, protecting both players and companies alike.

Numbers and facts

Mário Cardoso spoke openly about the challenges posed by AI. He emphasized that AI has significantly lowered the barrier to sophisticated fraud. This means that even less technically savvy individuals might now be able to launch complex fraud attempts. The necessity to constantly evolve and improve one's protection is crucial for gambling providers. It's about not viewing transactions in isolation, but rather keeping an eye on a user's entire behavior.

„AI has significantly lowered the barrier to sophisticated fraud.“ - Mário Cardoso, Fraud & Risk Manager at Solverde.pt

This statement underscores the growing threat. It is not just the volume of fraud cases that is increasing, but also their quality and the difficulty of detecting them.

Background

The iGaming industry has always contended with fraud, ranging from bonus abuse and identity theft to money laundering. However, the introduction of AI tools is fundamentally changing the game. Fraudsters are using AI to create realistic fake documents, open accounts in bulk, or even imitate behavioral patterns that can deceive human verifications.

Solverde.pt, a recognized provider in Portugal, represents many online casinos that must confront these new challenges. While automated fraud detection systems have been in use for a long time, they now need to be equipped with AI-powered defense mechanisms themselves to remain effective. This requires significant investment in technology and skilled personnel. A focus on a risk-based KYC approach is a central pillar in proactively combating this type of fraud and identifying and mitigating potential risks early on.

Why it matters for German players

For German players in GGL-licensed online casinos, the escalating fraud situation primarily means one thing: even stricter identity checks. The Joint Gambling Authority of the Federal States (GGL) already places immense importance on player protection and adherence to strict regulations. This includes comprehensive KYC procedures during registration. As AI-driven fraud attempts become more sophisticated, German casinos might need to further optimize their verification processes. This may seem slightly more elaborate for individual players but serves to protect against identity theft and money laundering. Players can trust that their data is secure and that providers are doing everything to ensure a fair and safe gaming environment. Restrictions such as the 1 Euro per spin limit and the monthly deposit limit of 1,000 Euro, as well as the central self-exclusion system LUGAS, form additional layers of protection in the German regulated market. This strengthens trust in legal offerings and makes it harder for fraudsters to operate.

What it means for GGL-licensed casinos

For online casinos with a GGL license, Mário Cardoso's warning implies that they must significantly increase their investments in fraud prevention and AI-powered security systems. The GGL already sets high standards for providers, particularly in anti-money laundering and player protection. Casino operators must continuously adapt and improve their KYC and onboarding processes to detect new fraud forms caused by AI. This includes deploying state-of-the-art verification technologies capable of identifying fake documents or manipulated data. A risk-based approach is essential for efficient and resource-saving operation. The ability to detect suspicious behavior patterns using intelligent systems will become a crucial competitive advantage. Only in this way can GGL casinos maintain their licenses and secure player trust. The fight against fraud is an unending task that has taken on a new dimension with AI.