In its third annual Gambling Industry Report, TransUnion-owned antifraud technology provider iovation analyzed the 2018 trends that drove online gambling so operators can better understand how to differentiate themselves with players in 2019.
According to the report, credit card fraud increased by 155 percent over the past five years, reflecting an average annual growth of 39 percent. But, while the increase cannot be attributed to a single factor, the nature of the devices their customers use to gamble could help operators attenuate the threat. The rise of mobile devices as a preferred way for users to play—they accounted for 70 percent of all online transactions in the industry in 2018—gives operators a direction in which to focus their antifraud efforts.
“Even in the evolving environment, there are still some constants we can rely on,” said iovation Executive Vice President of corporate development and Co-Founder Jon Karl. “While fraudsters may have adapted their tactics over the years, at the heart of every online fraud attempt—whether through the web, an application or via a mobile browser—is a customer device.”
As a result, on top of offering a positive user experience, operators are faced with the continued challenge of reducing credit card fraud as well as false declines, while also minimizing manual reviews and unnecessary step-ups, the report said.
All the while, account takeover (ATO) attacks are growing more prevalent, resulting in the convergence of fraud prevention and authentication. Still, a top obstacle to fighting ATOs as well as synthetic and true identity fraud is protecting the customer’s identity, but making sure that security doesn’t come at the cost of the player’s online experience. According to the report, combining seamless customer authentication with next-generation fraud prevention delivers protecting against both existing and emerging threats.
Download the report here.