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As eSports become more popular, time for the industry to get real about security
Police in Ukraine recently seized 3,800 PlayStation 4 consoles, which currently retail for around 290 each, and found to their surprise that the operation wasn’t mining cryptocurrency as they assumed but was in fact being used to generate content packs for FIFA Ultimate Team, a popular game mode in the FIFA football series.
The raid and its results underline a fact that may escape more traditionally minded members of the gaming community: eSports is a major industry, and like any industry it is susceptible to fraud. The fact that the games themselves take place virtually is irrelevant to fraudsters who can use the familiar toolkit of multi-accounting, bonus abuse and affiliate fraud to earn thousands.
With many sports teams unable to play throughout much of 2020 and 2021, eSports grew massively. League Championship Series (LCS), one of the largest eSports leagues, became the third most viewed professional sports league amongst 18-34 year olds in the U.S and has retained its corporate sponsors at a time when other leagues were shut down. Success stories like these are blunted by how pervasive eSports fraud is,
So, what kinds of fraud are taking place in eSports, what is it costing eSports organizations and what can be done to stop it?
What kinds of fraud are possible in eSports?
eSports attracts very similar types of fraud to regular sports betting, including:
- Bonus Abuse: Like other sports betting companies, eSports companies often give sign-up bonuses such as free bets to new players. By coding automated systems, a fraudster can sign up to hundreds of accounts and use the free bets to win real money. This can cost gaming companies up to 15% of their revenue.
- Multi-accounting: Similarly, a fraudster can use multiple accounts to perform other types of fraud, such as matched betting, ‘smurfing’ or arbitrage of affiliate fraud.
- Affiliate Fraud: Those eSports betting organizations that draw in some of their new players from affiliates are vulnerable to affiliate fraud in which an affiliate creates fake accounts to gain the pay-out.
- Account takeover: Using lists of passwords from data breaches, keyloggers or phishing a fraudster can gain access to a player’s account and drain their funds.
- Chargeback fraud: A player, who may be a legitimate gamer and not a professional fraudster, initiates a chargeback on a transaction. This is common in gaming when gamblers regret a bad bet and claim that their account was hacked.
The costs of eSports fraud
Fraud costs have a way of snowballing, with each $1 lost through fraud actually costing companies $3. The above techniques are hardly equivalent to the major data breaches of major banking and tech companies that cost on average $3.86 million, but the constant barrage of low-level frauds can soon drain your company’s security budget. Aside from the cost of the fraud itself, there are a number of hidden costs such as:
- Chargeback losses: Investigating and disputing chargebacks will take up your risk team’s time, leaving them little time for more valuable activities. More worryingly, a company with a large number of chargebacks is likely to find it difficult securing credit or loans. Visa and Mastercard’s resolution processes are making things even more difficult for merchants, so you are likely to lose even more.
- Affiliate budget waste: You could be paying for useless clicks from bot networks rather than legitimate customers, wasting your marketing budget and reducing overall ROI.
- Reputational damage: Once word of mouth spreads about customers losing the entire bank accounts to account takeovers it will not be long until players start deserting your site.
- Regulatory fines: The regulations around eSports are not as stringent as with other sports betting, but it will not be long before they catch up. With the industry growing it will not be long before countries put regulations in place to protect players, and without stringent security your company could be fined.
The solutions
You will notice that the majority of the types of fraud common in eSports have to do with fake accounts. These are easy for fraudsters to create using the wealth of publicly available data and leaked information, but fortunately artificial intelligence-based tools have been developed that allow companies to spot synthetic identities.
Through device fingerprinting, email profiling and IP analysis a complete picture of a new signup to your site can be created, allowing software to spot the tell-tale signs of a hastily created account. For example, it could find that an email address does not match any social accounts, or that they use VPNs and data centers to conceal their IP address.
Of course, a sophisticated fraudster could create a convincing fake identity, especially with the wealth of information available from data dumps, so modern technology can also spot the use of pre-paid credit cards or even the speed with which information is entered, which could indicate it is being filled in automatically by a script.
By combining data points from a large and ever-growing set a system can determine whether it is likely that any given new account is fraudulent. For the many cases in which it will not be fully clear whether an account is authentic or not adaptive Know Your Customer checks can be used – customers with several red flags will be given full tests to determine their identity whereas other customers will have less obtrusive tests for a smoother site experience.
eSports has gone from a niche concern to an Olympic sport in a few short years, and that success is going to attract fraud, so it is vital for the industry to pre-emptively defend against fraud by adopting the very highest levels of security.
To learn more, visit: https://seon.io/
Denmark
Spelinspektionen: Data collection for unique Nordic gaming study begins
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A joint Nordic research project is now mapping gambling habits and gambling problems – 150,000 people in the Nordic region are participating in the sample.
The Nordic countries Iceland, Norway, Sweden, Finland and Denmark have launched a unique joint research project on gambling: the Pan-Nordic Gambling Study (PANG). The aim is to gather comparable knowledge about gambling habits and gambling problems in the region – something that has been lacking so far. From Sweden, the Public Health Agency, which is responsible for the assignment, and the Swedish Gambling Authority have participated in the work of developing the study.
The study includes, among other things, the prevalence of gambling, participation in different forms of gambling, differences between licensed and unlicensed gambling, and the connection between gambling and health.
“The study will provide a basis for assessing gambling and gambling problems in the Nordic countries. It will be exciting to compare the results with previous Swedish data and with the rest of the Nordic countries, especially since so few similar joint surveys have been conducted in Europe,” says Maria Vinberg, investigator at the Swedish Gambling Authority.
Data collection will now begin in November 2025, when approximately 30,000 randomly selected people in each country will have the opportunity to participate in the survey. The results of the survey will be published in a joint report in spring 2026 and will constitute an important knowledge base for research and future decisions in the field of gambling.
Source: spelinspektionen.se
The post Spelinspektionen: Data collection for unique Nordic gaming study begins appeared first on European Gaming Industry News.
3 Lucky Leprechauns
Reflex Gaming and 4ThePlayer bring Irish magic to British gaming venues with the launch of 3 Lucky Leprechauns
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“We’re thrilled to be partnering with Reflex Gaming once again. They’ve already done a superb job bringing our games to British pubs, clubs and arcades and 3 Lucky Leprechauns continues that momentum in style. The team at Reflex has captured the spirit of the original perfectly, players are going to have a fantastic, fun time with this one!”
The post Reflex Gaming and 4ThePlayer bring Irish magic to British gaming venues with the launch of 3 Lucky Leprechauns appeared first on European Gaming Industry News.
Latest News
Tom Horn Gaming Unwraps a Frosty Treat with Santa Yetti
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This December, Tom Horn Gaming invites players to the snowy mountain peaks in its new release, Santa Yetti, a playful holiday adventure where the jolly king of the mountains swaps his sleigh for snow boots to deliver frosty fortunes and festive fun.
Santa Yetti brings a flurry of excitement to the reels with Expanding Wilds, Multipliers, Respins, and the Respin Booster feature.
The Snowman is a Wild symbol. When it lands on any of the three reels, it expands and triggers a single respin. During the respin, seven win lines transform into twenty-seven ways to win, piling up prizes like Christmas presents. When all three reels are fully stacked with the same symbol, the total win is multiplied by ten, creating a snowstorm of rewards.
Players can also activate the Respin Booster, which increases their total bet by 1.5x and boosts the chance of triggering a respin by 300%. The feature remains active until manually switched off, giving players full control over their gameplay. For those feeling extra lucky, the Star Gamble Ladder appears after every base game win, allowing them to gamble their winnings by guessing the next star’s colour – pink or blue. Each correct guess doubles the prize and pushes the player up one level. The Golden Star can randomly appear at levels two to five to double the win instantly, no guess required.
“Santa Yeti brings together everything players love about Tom Horn games – fun, engaging mechanics, and a great story to match. It’s festive, it’s fresh, and it’s packed with features that keep the excitement rolling. We wanted to end the year on a high note, and Santa Yetti does exactly that with humour, charm, and plenty of win potential,” said Ondrej Lapides, CEO at Tom Horn Gaming.
Blending simple yet fast-paced gameplay with dynamic mechanics, Santa Yetti offers short, mobile-optimised sessions that are sure to delight both casual spinners and seasoned players. Its engaging format and rewarding features make it a perfect choice for operators looking to boost engagement during the high-traffic festive season. With its playful theme, quirky light-hearted style, and generous win potential, Santa Yetti is set to make this Christmas truly santastic.
The post Tom Horn Gaming Unwraps a Frosty Treat with Santa Yetti appeared first on European Gaming Industry News.
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