iGaming fraud increased 73% from 2022 to 2024, with global losses estimated at $1.3 billion in 2024. AI deepfake scams grew tenfold between 2022 and 2023, there has also been an increase in ID fraud.

This surge of online gambling crime is creating serious financial and reputational risks for operators, as seen with the record-breaking compliance-related fines issued last year.

The iGaming industry: A hotspot for digital fraud

iGaming is now the highest-risk sector for fraud attempts in the UK. In 2023, 7.3% of all UK transactions were flagged as suspected fraud. On a global scale, the rate was 5.3%. With online gambling revenue projected to hit $133 billion by 2029 and the number of players expected to reach 291 million, the opportunities for crime are multiplying.

Deepfake scams and the evolving threat landscape

Advanced technologies are increasingly being used to exploit vulnerabilities in KYC. One of the most concerning developments is the rise of deepfake scams which enable identity theft. With rapid AI developments this will continue to be an increasing battle for compliance teams. 

ID fraud: A growing challenge

ID cards are the most commonly forged documents, followed by passports and driver’s licenses. As these scams evolve, the need for more robust verification systems is critical.

The case for document-free verification

As fraud tactics evolve, current compliance processes simply aren’t working.

Operators can no longer afford to rely on document-based verification. The solution lies in instant, document-free verification using real-time bank data, which offers greater security by eliminating the risk of forged documents.

Semla provides a cutting-edge iGaming verification solution that helps operators fight fraud at its source. By using real-time bank data for verification, we eliminate document fraud and offer compliance teams instant, reliable insights into player affordability and risk. This shift to more secure, automated verification not only protects against fraud but also streamlines the compliance process, reducing heavy workloads and the risk of human error.

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