Covid Presented New Fraud Challenges for Several Online Sectors, Says Report

Covid Presented New Fraud Challenges for Several Online Sectors, Says Report

January 14, 2021

A new report focused on the online gaming, eSports, cryptocurrency and travel verticals, found the Covid-19 pandemic had significant impact on fraud in those sectors.

For iGaming, eSports and crypto, the restrictions implemented globally to contain the spread of Covid-19 generally served to boost their business. Each of those verticals experienced increased traffic and transactions as consumers migrated their lives online. Travel, of course, was massively and negatively affected by the pandemic. The report, Fraud Prevention During a Pandemic – SEON Sector Report from Budapest, Hungary-based antifraud technology provider SEON, found rising fraud in all four sectors.

For eSports and iGaming, the main fraud problems centered around bonus abuse, multi-accounting and affiliate fraud, the SEON report said. Travel had different issues. Use of stolen credentials and cards, along with loyalty fraud, were old problems that remained. Due to the abrupt cancellation of millions of flights and the closure of hotels, resorts, cruise lines and more, reservations that had been bought and paid for were refunded en masse. Chargebacks, as a result, were a huge issue in the travel industry.

“Throughout the outbreak many businesses have had to adapt quickly to changing circumstances and they should be able to respond to fraud with the same haste,” said Tamás Kádár, CEO and founder of SEON. “Our report highlights exactly what is happening in terms of fraud across many sectors, including in some of the riskier ones. It will help companies, whether new to the online space, or those that have been operating there for a while, prepare for fraud developments as we head into the new year.”

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