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13 Types Of Fraud in the Real Money Gaming Sector

7 min read

The online gaming industry is a booming business, with billions of dollars in revenue each year. But as with any industry that deals with money, there are always those who will try to cheat the system. Fraud in online real money gaming comes in many forms, from players trying to game the system to operators running illegal websites.

In this blog post, we will explore thirteen of the most common types of frauds and risks in the real money gaming business. Whether you’re an operator or a player, it’s important to be aware of these dangers so that you can protect yourself.

Different Types of Frauds in Real Money Gaming

When it comes to the real money gaming business, there are a variety of different types of frauds and risks that you need to be aware of. Here’s a rundown of the most common frauds-

Chip Dumping

This is when a player intentionally loses a hand in order to transfer chips to another player. This is usually done in team games, like poker, where players are working together to try and win big pots.


This is when two or more players work together to cheat the system. They may do things like share information about their cards, or signal to each other what they should do in order to increase their chances of winning.


This is when a casino or other gaming establishment alters the game in some way to favour certain players over others. This could be done by rigging the random number generator so that certain numbers come up more often, or by dealing cards from the bottom of the deck instead of the top.

Money Laundering

This is when players use online gaming sites to clean the dirty money that they’ve obtained through illegal means. They may do this by transferring money from one account to another, or by betting on games and then cashing out their winnings into a clean account.

Identity Theft

This is when someone steals your personal information in order to open up an account in your name and start gambling with your money. They may also use your identity to withdraw money from your existing accounts or run up.


When a customer objects to a charge on their credit card account, it is known as a chargeback.This can be done for a variety of reasons, including if they didn’t receive the product or service they paid for, if they believe the charges are fraudulent, or if they simply changed their mind about the purchase. Chargebacks can be costly for businesses, as they not only lose the sale, but also have to pay fees to the credit card company.

Refund Fraud

Refund fraud occurs when a customer requests a refund for a purchase they never made, or for something that they did not receive. This can be done by using a stolen credit card, by making a false claim about the product or service, or by simply changing their mind after receiving the product or service. Refund fraud can be costly for businesses, as they not only lose the sale, but also have to give the customer a refund.

Account Takeovers

An account takeover occurs when someone gains access to another person’s online account and uses it to make unauthorised purchases or withdrawals. This can be done by stealing login information through phishing scams or malware infections, or by guessing passwords through brute force attacks. Account takeovers can be costly for businesses, as victims may dispute unauthorised charges, leading to chargebacks and refunds.


Bank Statement

Fraudulent activity on your bank statement is one of the most common types of fraud in online gaming. This can happen in a number of ways, but the most common is when someone uses your account to make unauthorised charges. This can be done by using your account information to make purchases or withdrawals from your account, or by transferring money out of your account without your permission.

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Assistance Scams

Fraudulent websites or emails offering assistance with levelling up, acquiring in-game items, or other services, in exchange for payment. These scams often target new or inexperienced gamers who are seeking help to progress in their game.

Bonuses and Promotions Fraud

This type of fraud occurs when players take advantage of bonuses and promotions offered by online casinos. For example, they may create multiple accounts to claim multiple bonuses, or they may try to game the system by placing bets on both sides of a match to guarantee a win.

Cheating Programs

Software that is designed to give a player an unfair advantage over others by providing them with information that is not available to everyone else, such as the location of opponents or items on the map. Cheating programs are typically downloaded from third-party websites and are often used in conjunction with bots (automated software programs that play the game on a player’s behalf) to give the cheater a 24/7 advantage.

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Fake Sweepstakes and Prize Giveaways

There are many fake sweepstakes and prize giveaways going on in the online gaming world. They often promise players huge prizes if they complete certain tasks or buy in-game items. However, these are all scams designed to get your money or personal information.

Impact of Frauds in Real Money Gaming

Frauds in real money gaming can have a significant impact on both the player and the operator. The most common instances of player and operator fraud are stated below-

Player fraud includes activities such as chargebacks, identity theft, and bonus abuse and we will give you a brief knowledge of each one:

Chargebacks occur when a player disputes a charge with their credit card company, resulting in a refund of the amount they deposited. This can be a costly problem for operators, as they not only lose the revenue from that particular transaction but also incur fees from the credit card company.

Identity theft occurs when a player uses someone else’s personal information to open an account and play games with real money. This can lead to financial losses for both the player and the operator, as well as damage to the reputation of the gaming site.

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Bonus abuse is another form of player fraud that occurs when players take advantage of bonuses or promotions offered by operators. This can include using multiple accounts to claim bonuses, using forbidden methods to play games, or cashing out winnings before meeting wagering requirements. Bonus abuse often results in the forfeiture of winnings and deposit refunds by the operator.

Operator fraud includes activities such as :- Software bugs, insider trading, and problems with payment processing

How to Prevent Frauds in Real Money Gaming

Fraud is an illegal activity that occurs when someone misrepresents themselves or their products/services in order to gain something of value. It can happen in any industry, but it’s especially prevalent in the online gaming industry due to the large amount of money involved.

There are many different types of frauds that can occur in real money gaming, but some of the most common include:

Preventing Account Takeovers

Many games, such as Fortnite, already provide players the option of using two-factor authentication, but unless it is required, many account holders will choose convenience above security and stick with single-factor authentication.
Typically, businesses want to make it simple for customers to log in and play, so they frequently only require eight-digit passwords, which are easily cracked by any skilled hacker in a matter of minutes.
Thus, requiring passwords between 12 and 16 characters and using two-factor authentication will help to decrease account takeover fraud.

Combating Card Testing

Having fraud prevention technology in place is one method of preventing card testing. A decent tool can perform a velocity check, limit the number of times a transaction can originate from a specific IP address, and reveal the number of cards being used on a single account. This will assist in blocking those accounts and stopping card testing.

True Fraud Prevention

In this case, a gaming account is funded using a stolen credit card, which is subsequently sold on an online marketplace. Utilising external technologies like a PCI-compliant payment gateway and fraud filters are two of the greatest ways to combat this type of fraud. AVS and CVV matching should be included, as well as fraud prevention features.
Because these filters are off by default, gaming firms are failing in this area. The cardholder will have to supply an address and CVV in order to have the AVS and CVV.
Due to the likelihood that criminals will only obtain a portion of this information, this will assist reduce identity theft.

Red flags to be aware of include the following:

  • Requiring you to pay a fee to enter or collect your winnings.
  • Assuring you will receive a prize.
  • Requesting sensitive information like your social security number or bank account details.
  • Creating a sense of urgency by saying that the offer is only available for a limited time.


There you have it 13 types of fraud and risks that are common in the real money gaming business. As you can see, fraudulent activity can take many different forms, and it’s important to be aware of all of them. With this knowledge, you can protect yourself and your business from becoming victims of fraud.
If you come across an online gaming scam, report it to the authorities and do not give out any personal information.