Understanding the Different Types of Online Casino Scams
Forewarned is forearmed in any situation and to understand the scams prevalent in the the online casino world players should be aware of the full gamut of the types of online casino scams currently relieving players of their hard-earned cash.
Currently Known Online Casino Scams
The types of online casino scams executed by fraudsters change rapidly as new methods are discovered and existing players become aware of the tricks. Below we present the latest up-to-date list of online casino scam examples and conclude by providing you with key takeaways that can help you mitigate the risks of gambling on the internet.
Online Casinos Scams Using Phishing
Phishing is defined as an attempt by an unknown person to extract personal information such as passwords and usernames by appearing to be from a legitimate entity. We will take you through some of the most common below.
All consumers should be aware of phishing and online casino players are more at risk of this type of fraud given gambling’s connection to large sums of money and oftentimes a reluctance of some defrauded players to report any crime due to embarrassment.
Email Scams
Typically, an online fraudster will send an email to a player which appears to come from that player’s regular online casino. Scammers may even use check your social media accounts to find your operator.
The email will suggest clicking a link either to receive bonus funds (or something similar). Instead of going to the official site, players are redirected to a spoof site where they may well innocently enter passwords and log-in details.
More pernicious regarding email scams is losing access to your email account completely. Either by social engineering or hacking, losing control of your primary account means fraudsters not only have to opportunity to mine information but they can easily bypass two-step authentication processes.
LiveChat Scams
Similar to email fraud, this type of online casino scam leaves players open to the risk of losing large sums of money. Posing as a company representative on a spoof online chat means players are more likely to reveal sensitive information.
Players should be aware of one of the cardinal rules of online safety which is that companies never ask for passwords or other private information when speaking in an online live chat. If you are at all suspicious, you should disconnect the conversation and look for the official channel to communicate.
Fake Social Media Scams
Whether it be through private message or just conversation, players are at risk of inadvertently handing over private information on social media. Sometimes this takes the form of hackers, spoofing the official account of an online casino.
Other social media casino fraud takes place through accounts acting as affiliates. Typically, scammers will have a Twitch or YouTube account whereby they pretend to be playing (and winning) at online casinos. You may be invited to join a syndicate or sign up through an affiliate link.
Using false identities on social networks to scam people isn’t only prevalent in the gambling industry. Catfishing (or love scamming) is a significant problem in online dating, where hackers use similar techniques on dating platforms to coerce vulnerable people into sharing personal and financial information.
Unregulated vs Regulated Online Casino Scams
A grey area type of online casino scam takes place when players choose to play on an unregulated online casino. UK players should never join a site which does not hold a licence from the UK Gambling Commission. Use its business search page to discover if your chosen casino is licensed.
Scams by Unlicensed Casinos Online
Be warned: an unregulated online casino will appear very much like a licenced venue. It will have very similar games providers and payment processors. It will generally look and feel safe. Indeed, it may even be licensed – though a licence from a place like Curacao is hardly worth the paper it is written on.
The types of online casino scams perpetrated by these operators are most definitely in the grey area. There will be problems getting paid, wins may not be registered correctly; bonuses may not get paid out due to minor technicalities and deposited funds may go missing. These types of situations can occur in sports betting scams too.
The real problem for players is the lack of redress. When playing on licensed UK casinos, conflicts and misunderstandings can be sorted out easily and any shenanigans can be reported to the UK Gambling Commission. If a casino is not licenced in the UK, the simple rule is do not play there!
Scams by Regulated Casinos Online
The types of scams online casinos with a licence get up to are generally morally wrong as opposed to legally non-compliant. There are strict conditions to any UK online casino licence which means operators need to get creative to con people out of their money.
The most common scam is executed by not paying players in a timely manner. The idea is to delay a withdrawal request for as long as possible in the hope players will reverse the withdrawal and subsequently lose any winnings. Technically legal but borderline unethical.
By far, the most common form of scam used by casinos that cheat regards welcome bonuses. The headline monetary amount will look tempting, but the reams of terms and conditions will make winning any bonus near impossible. Players can end up risking large sums of money for a small bonus.
Ransomware and Malware Scams
Viruses, spyware, ransomware, and other undesirable programs that are covertly placed on your system are all considered malware. Typically, it is installed after a user clicks on a link from an email or social media. With regards to online casino scams, the link will be offering a great bonus or another easy money opportunity.
Ransomware is a type of malware where players need to hand over cryptocurrency to have control of their device returned. Online casino players are vulnerable to this type of attack through bonus offers and other lucrative-looking invitations. Find a URL scanner online for maximum protection.
Scams Against Online Operators
It is not only players who have to deal with online casino scams, operators themselves need to defend themselves from the scammers. Some of the biggest casino scams involved operators being stung by opportunist individuals.
The most common scam against online operators is chargeback fraud. Unscrupulous players will spend money on a card before later claiming it has been lost or stolen. The prevalence of this has decreased since credit cards were banned at all online UK casinos. Safer alternative payment methods, such as PayPal, are commonly used by players and casinos as a result.
Clever scammers can steal players identities through phishing and social engineering. It can often be weeks before a consumer realises money has been going from their accounts to online casinos. Given the onus is on casinos to carry out identity checks, failures can lead to online casinos being scammed in this manner.
Bonus fraud is a major problem for online casinos with players using multiple accounts (usually friends and family) to open accounts. The best methods to play bonuses are shared on forums with players being guaranteed to win or suffer minimal losses with optimal play.
One of the biggest headaches for online casinos is money laundering. While they do their best to ensure identity checks are carried out and due diligence is performed, human error can result in them losing out should the regulator finds them in contravention of money laundering rules.
Key Takeaways
Please note that the examples of online casino scams mentioned on this page are just a snapshot of what is currently occurring. We will endeavour to update this page as new scams come to light, therefore bookmarking it for future reference is encouraged. Below, you’ll find three of the most important takeaways from the article:
- The most important form of casino fraud players need to be aware of is phishing. We can’t stress enough the need for any player online to avoid clicking on links unless they are entirely confident of the destination.
- Players should only play at licensed UK online casinos. This is another point that is worth repeating. Playing at a regulated operator gives customers so many safeguards not afforded to those who choose unlicensed venues.
- Even when joining regulated venues, it is worth reading the full terms and conditions (no matter how boring) to avoid any obvious problems. Do look at the withdrawal times and study any bonus offer closely. This includes welcome bonuses and ongoing promotions.
If you have found this article valuable and would like an overview of the most reliable operators available, you can check out our dedicated page on safe online casinos.
If you suspect that you have been the victim of an online gambling scam, you can report such incidences to Action Fraud: a service from Police UK that helps combat the threat of online fraudsters.