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Online casinos and gambling sites attract millions of people globally. Fraudsters acknowledge this fact, elaborating on various scams to trick unsuspecting players or gambling operators into losing their money. The global online gambling market is expected to grow from $111.440 billion in 2025 to $167.349 billion in 2030, according to the latest Knowledge Sourcing Intelligence report. And so are online casino scams and gambling fraud.
In January 2025, Gambling IQ reported that online gambling fraud surged 73% from 2022 to the close of 2024 – costing the sector around $1 billion each year.
Let’s take a look at some of the most common online casino gambling scams in 2025 and how to avoid them.
Key Takeaways
- Online casino scams and gambling fraud affect both players and gambling operators.
- In 2025, iGaming operators face evolving online fraud types, primarily bonus abuse, money laundering, and chargeback fraud.
- Other significant threats directly targeting players include payment system fraud, crypto fraud, phishing scams, rigged games, and identity theft.
- AI, machine learning, and biometric security have become essential tools for gambling operators to detect fraud and ensure fair play.
What Are the Most Common Online Gambling Scams in 2025?
Gambling IQ estimated that the global losses from gambling fraud neared $1.3 billion in 2024.
Kris Galloway, Head of iGaming Product at Sumsub, told Gambling IQ:
“The gaming industry is facing a perfect storm of challenges: escalating AI-driven scams, bonus abuse syndicates, and affiliate fraud, just to name a few.”
In 2025, advanced scams, including deepfakes, account manipulation, and bonus abuse, have evolved in parallel with technological advances.
However, the ‘traditional’ scam techniques also didn’t go anywhere.
Counterfeit IDs remain prevalent. In document scams, ID cards are now the most forged document, followed by passports and driving licenses.
Almost 80% of online casino scams and other fraudulent activities occur during the biometric verification process due to the rise of liveliness bypass techniques.
Nabeel Zafar, Chief Technology Officer at J&K Studios, highlighted that fraud in online casinos has become a significant concern, especially in the US, where the industry has rapidly expanded. He said:
“Fraudulent activities such as identity theft, money laundering, bonus abuse, and account takeovers are common, posing challenges for both the casino operators and players. Online casinos often face security breaches due to weak authentication processes, lack of adequate encryption, or loopholes in their payment systems, making them vulnerable to cyberattacks.”
Therefore, the top entries in our online casino scams list include the following:
| Bonus abuse | Fraudsters exploit promotional offers by creating multiple accounts to claim bonuses illegitimately. |
|---|---|
| Phishing scams | Scammers fake emails, use spoofed casino websites and create fraudulent login pages and pop-ups. |
| Money laundering | Fraudsters use online casinos to disguise the origins of illegally obtained money. |
| Crypto scams | Crypto scams in gambling deceive players into transferring money to fraudulent platforms. |
| Identity theft | Criminals steal personal information to create fake accounts or make unauthorized gambling transactions. |
| Payment fraud | Scammers trick players into depositing money through fake payment gateways. |
| Rigged games | Unscrupulous online casinos manipulate game algorithms to reduce players’ chances of winning. |
| Chargeback fraud | Users place bets and then dispute the transaction with their bank to reclaim funds. |
8 Online Casino Scams & Gambling Fraud Scenarios
1. Bonus Abuse
Bonus abuse has become the primary exploitation tactic in online gambling in 2025. Individuals or betting syndicates register multiple accounts to misuse promotional bonuses.
According to Gambling IQ, bonus abuse accounts for just under 66% of online casino fraud.
Typically, fraudsters create multiple accounts or use fake identities to claim bonuses and repeatedly exploit welcome offers and free spins.
Common techniques:
- Gapping is a technique when players cycle between casinos to exploit new user rewards.
- Chip dumping presupposes that players transfer winnings to other accounts to evade detection.
This type of fraud undermines marketing budgets and damages the casino or gambling operator’s profitability.
Henk Wolf, Strategic Marketing Leader and iGaming Consultant, said:
“Bonus abuse isn’t just a few rotten apples, it’s a serious operation. From multi-accounting to arbitrage loopholes, abusers know the system better than most operators. Yet most casinos still underestimate the scale of it.”
How to Prevent Bonus Abuse: Tips for Operators
- Adopt thorough identity verification checks and KYC processes
- Set wagering requirements and game restrictions
- Track bonus usage closely, watch how players act on your platform
- Employ advanced analytics and player monitoring tools
- Partner with industry watchdogs
2. Phishing Scams
Phishing never gets old. Scammers spoof emails, use fake online casino websites, and create fraudulent login pages, ads, and pop-ups to trick players into revealing their sensitive data.
“It is not the official Play Store. It’s a copycat website distributing an illegal gambling app to adults and minors alike,” said Ashwini Rao, PhD, Co-Founder and CEO of Eydle, showcasing the example of an illegal gambling app.
Rao said:
“Illegal gambling preys on kids as young as 10. Gambling addiction is linked to the highest rate of suicide. Illegal gambling operators use social engineering scams to hook users.”
In another post on Linkedin dedicated to ad phishing, Eydle’s Rao highlighted that the technique has already gone beyond fake emails. She said:
“Ad phishing is so much on the rise. When it comes to phishing, many executives that I talk to still think email phishing or messaging/SMS. In the past few years, so much of phishing and social engineering has moved to social media (profiles, DM, posts, videos) and now ads on social media. Awareness is the first step to protection.”
How to Avoid Phishing in Gambling: Tips for Players
- Activate two-factor (2FA) or multi-factor authentication (MFA)
- Log out of your account when using a shared machine
- Use privacy settings on your online account
- Don’t click on suspicious emails that portray a sense of urgency
- Download apps and extensions and make your in-game purchases only from the official websites
- Don’t disclose your personal or financial information to someone in an in-game chatroom
- Report any suspicious activity to the gambling platform
3. Money Laundering
Money laundering put down roots in the gambling industry, with bad actors trying to disguise illegal assets as legitimate winnings.
Criminals can place bets and buy chips to cycle funds through accounts to “clean” money through online casinos and gambling sites and then cash it out as legitimate profits.
Money laundering is a serious problem for gambling operators and casinos, leading to increased operational costs as companies boost their AML compliance efforts.
Anna Stylianou, Anti-Financial Crime & AML Advisor, Founder of AML Cube, said:
“Online gambling is a booming industry, full of opportunities for both players and operators. But with that growth comes the responsibility to protect these platforms from being exploited by criminals. Money laundering is a serious threat, but with the right measures in place, gambling operators can significantly eliminate their risks.”
How to Prevent Money Laundering: Tips for Operators
- Implement strict know-your-customer (KYC) and customer due diligence (CDD) procedures
- Set internal control policies and an AML compliance program
- Identify and report suspicious activity to authorities
- Evaluate the risk level of each client and transaction unit
- Monitor transactions
- Regularly conduct compliance audits
- Use AI and ML algorithms to detect anomalies
4. Crypto Scams
Cryptocurrencies have become deeply involved with the gambling industry as more casinos and gambling platforms integrate crypto payments.
Meanwhile, scammers exploit the sector’s anonymity and regulation challenges to take over user accounts and access their wallets linked to these accounts.
Account takeovers can happen through phishing schemes, breaching exchanges tied to gambling sites, or exploiting gambling platforms’ weak security protocols.
Fraudsters can also use rug pull scams, in which fake gambling sites attract user money before disappearing with accumulated funds forever.
How to Avoid Crypto Scams in Gambling: Tips for Players
- Do your own due diligence and check the licenses
- Consider online casino reviews and evaluate their reputation
- Learn more about the team behind the platform
- Spot red flags, such as pressure tactics (urgency) and guaranteed high returns
- Always verify links and beware of fake support scams
- Make sure your crypto assets are stored safely
5. Identity Theft
This common cybersecurity problem thrives in gambling, too. Hackers steal personal and financial information from players, resulting in severe losses for players themselves and gambling operators.
Identity theft results from various fraudulent actions, including account takeovers, false registrations, payment fraud, and phone top-up abuse (when fraudsters trick victims into funding their accounts using a phone payment system).
Identity theft damages a player’s credit status and can be costly to recover. It also breaks trust in an affected gaming platform.
How to Avoid Identity Theft: Tips for Players
- Use strong passwords, and make sure they are unique and complex
- Enable MFA and use multiple account identification methods
- Track your account activity, monitoring transactions, login patterns, and chargebacks
- Choose trustworthy payment gateways and licensed platforms
- Beware of phishing, and never click on suspicious links
6. Payment System Fraud
Payment system fraud in gambling happens when fraudsters exploit vulnerabilities in online gambling platforms’ payment processes. This can include:
- Multi-account fraud and card testing: Fraudsters create multiple accounts or test stolen cards on gambling sites.
- Account takeover and credential stuffing: Scammers reuse previously stolen usernames and passwords to take over legitimate accounts. Once in, they can withdraw funds.
- Fake payment gateways: Scammers trick players by creating convincing but fraudulent interfaces that mimic legitimate payment systems and convincing players to use them.
How to Avoid Payment Fraud: Tips for Players
- Use secure and reputable payment methods
- Enable 2FA
- Track your account activity
- Never share payment details publicly
- Set transaction limits
- Check if the gambling site is legit
- Report suspicious activity immediately
7. Rigged or Unfair Games
Fraudulent casinos can manipulate game outcomes – rig games – to ensure players lose more often.
Such unfair practices include tampered random number generators (RMGs), when casinos manipulate RNGs to favor the house; altered game software, when they use counterfeit or modified versions of popular games, tweaking algorithms to reduce winning odds; or fake multiplayer пames, where they introduce bots posing as players, programmed to outplay humans.
These tactics often go unnoticed without technical scrutiny.
Exactly. Gambling involves risk that is understood, but rigging the game is not risk, it is theft. When the odds are manipulated, it is not a fair game, it is fraud, plain and simple.
The problem is a lack of accountability. Scammers thrive when there are no consequences. Better…
— Nicki Sanders (@nickilsanders) February 15, 2025
How to Avoid Rigged Games: Tips for Players
- Choose well-trusted, reputable casinos
- Read online casino reviews from players
- Verify third-party audit certifications
- Check for valid gambling licenses
- Start with small deposits
- Avoid sites with unclear ownership or contact info
8. Chargebacks or Friendly Fraud
Illegitimate chargebacks, or so-called “friendly fraud,” gained prominence as another form of betting scam.
Starting legitimately, a user deposits funds, using their card, start playing, but than disputes the charge with their bank – falsely claiming an unauthorized gambling transaction.
Normalization of such financial crime is another concerning trend.
According to a study by Cifas, which surveyed 2,000 UK residents in 2024, 15% believe lying to their bank to reverse gambling losses is legal.
7% consider it a reasonable behavior and 12% admit personally knowing someone who had tried this practice.
Mike Haley, CEO of Cifas, said:
“The normalization of gambling chargeback fraud not only damages the integrity of the financial system but also undermines trust in legitimate avenues for dispute resolution. This behavior must be tackled through collaboration, education, and robust prevention measures.”
15% of UK people believe reversing #gambling losses via fraudulent chargebacks is legal, according to our latest #FraudBehaviours research.
We reveal all via @gambling_iq: https://t.co/kSh0OUSvog#Fraud #FraudAwareness— Cifas (@CifasUK) January 28, 2025
How to Prevent Chargebacks: Tips for Operators
- Use advanced verification techniques
- Set chargeback alerts
- Implement AI to track suspicious behavior
- Establish clear and transparent refund policies
- Work only with trustworthy payment processors
- Educate players on the consequences of financial fraud
How to Avoid Online Casino Scams
So, how do you spot online gambling scams?
Gambling is always risky. Unfair practices, scams, and fraud can multiply these risks tenfold.
To protect against online casino scams in 2025, gambling operators should adopt advanced anti-fraud technology, while players must educate themselves and foster awareness.
Building an effective gambling fraud prevention plan might include the following steps:
Best Practices for Players
- Choose only reputable casinos and play on platforms with valid licenses and certifications.
- Conduct due diligence and read up-to-date player reviews and industry reports.
- Boost awareness and learn more about common scams.
- Start small to test a casino and assess payout reliability. Begin with minimal deposits.
- Check identity protections and prefer gambling websites with biometric scan verifications and MFA.
- Secure your connection, avoid public Wi-Fi, and use a VPN to protect your data.
Best Practices for Online Casinos & Gambling Operators
- Use AI and anomaly detection systems. Artificial intelligence and machine learning can help analyze players’ behavior, detect anomalies, spot fraudulent actions, irregular deposits or withdrawals, and bonus exploitation attempts.
- Improve your ID verification by implementing biometric scans, digital identity checks, and multi-factor authentication.
- Use device fingerprinting and track devices through browser or IP data to spot suspicious new entries.
- Verify player locations through geolocation checks to block unauthorized access and comply with regional laws.
- Partner with trustworthy payment providers, use secure systems, encrypt transactions, and monitor stolen card use.
- Regularly conduct audits with the help of third-party anti-fraud experts to review internal systems and software.
- Educate players by creating and providing clear educational resources on scam risks for players.
The Bottom Line
The iGaming industry faces an ever-increasing level of fraud and scams. Still, gambling operators can provide secure practices and fair play to millions of users globally with advanced behavioral analytics, biometric security, and AI-driven monitoring. ?
Artificial intelligence and machine learning can analyze large datasets in real-time, flag deviations from norms and facilitate deepfake detection. In 2025, advanced anomaly detection systems became a significant part of an essential anti-fraud strategy.
Stay vigilant and gamble safely.
FAQs
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References
- Online Gambling Market Size & Forecast 2025-2030 | Free Sample (Knowledge-sourcing)
- iGaming’s Evolving Threats: Deepfakes, Bonus Abuse, and Security Innovations featuring Leading Anti-Fraud Firms (Gamblingiq.co.uk)
- Gambling Chargebacks: A Growing Threat in the UK (Gamblingiq.co.uk)
