AI
Confronting the age of AI-driven fraud
Gerardo Prieto, Chief Information Security Officer at The Mill Adventure, explores how the rise of generative AI is forcing a total paradigm shift in iGaming security and player verification.
Online gambling’s traditional identity stand-off has reached a breaking point. For years, operators walked a tightrope, balancing rigid AML/KYC regulations against the player’s desire for frictionless onboarding. But as we move through 2026, the ground has shifted substantially. The modern fraudster is no longer a manual actor relying on basic tools like Photoshop, but a 24/7 automated threat, utilising adaptive AI to evolve faster than most development sprint cycles.
For operators, the cost of losing this arms race is staggering. Identity fraud and money laundering have converged as the predominant risks, with 64.8% of businesses citing them as their primary threats. However, the real wake-up call is the point of entry. Recent market analysis reveals that the financial threshold is now the most vulnerable vector, with 41.9% of fraud attempts occurring specifically during the deposit stage. This is now the absolute frontline of defence.
The death of seeing-is-believing
We have moved well beyond the era of scripted attacks. The new frontline is defined by AI-driven abuse, where generative models create synthetic identities and high-fidelity deepfakes. Using real-time FaceSwap and lip-sync algorithms, bad actors can now bypass standard KYC protocols with ease. The traditional liveness check – asking a user to blink or turn their head – is increasingly obsolete against sophisticated generative adversarial networks (GANs).
The nightmare scenario for the modern CISO is the rise of camera injection. In these attacks, fraudsters bypass the device’s physical camera sensor entirely, feeding AI-generated content directly into the verification stream. Because the software believes it is receiving a direct feed from hardware, it misses the red flags of a digital overlay. In this landscape, the human eye has become a vulnerability, and pixels alone can no longer be trusted to verify a soul.
Biology vs. Algorithms: The new verification
To defend the perimeter, operators need to shift to a verification model rooted in physics and biology, not just image recognition. This requires advanced countermeasures like Remote Photoplethysmography (rPPG). This technology analyses minute light absorption patterns to track blood flow changes invisible to the naked eye. An AI deepfake might have perfect skin texture and flawless movement, but it does not have a pulse. By detecting the heartbeat in a video stream, we can distinguish between a living human and a digital mask.
We must also utilise 3D geometry and lighting physics to validate that a user’s environment is a physical reality. While a deepfake can simulate a face, it often fails to replicate the complex interaction between environmental light and the 3D topography of human skin. If the light source doesn’t wrap around the subject correctly, or if the depth map detects a planar surface, the system exposes the image for what it is: a flat counterfeit. We are essentially moving toward a proof-of-presence model that demands physical consistency.
The lifecycle defence
Resilience in 2026 requires a ‘shift left’ strategy. This means intercepting fraud at the absolute earliest stage. However, security cannot simply end at the front door and needs to evolve into a lifecycle defence system.
At onboarding, the priority is stopping synthetic identities. At the deposit stage, operators must employ multi-signal matching to validate KYC names against cardholders, dismantling muling rings before they can load funds. During gameplay, behavioural AI is essential to analyse betting patterns for bot signatures. Finally, at withdrawal, we must replace simple passwords with biometric step-up checks to prevent Account Takeover (ATO) fraud.
The operational standard is now risk-based authentication. Instead of rigid ‘allow or block’ rules, operators must move toward dynamic risk profiles for every session. By ingesting over 100 different signals, including biometric, IP, and device data, a system can apply friction only where it is explicitly needed. Low-risk users on trusted devices enjoy a seamless experience, while medium-risk anomalies trigger a passive biometric scan. Only overt threats are blocked immediately.
In this new reality, survival is about agility and not budget. Annual audits and static policies are relics of the past. If your security strategy is static, you are effectively opening the door to attackers. It is time to cultivate an adaptive immune system that evolves faster than the threat.
The post Confronting the age of AI-driven fraud appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.
AI
BetGames research reveals more than 70% of players failed to recognise AI avatar gameshow presenters
BetGames has revealed the results of a research project testing AI-generated presenters on its live game shows, finding that fewer than 30% of players realised the hosts were artificial — and that the change produced no significant impact on player behaviour.
For the experiment, the supplier introduced AI avatars designed as digital replicas of real presenters, quietly deploying them on one of its live games over several days to evaluate whether they could effectively replace human hosts.
The results showed that more than two-thirds of players did not notice the switch to AI. At the same time, key performance indicators — including session duration, stake size and total bets placed — remained statistically unchanged.
According to BetGames, the absence of both positive and negative shifts suggests that while AI avatars can technically replicate the role of live presenters, they currently provide no measurable advantage. As a result, the company believes there is not yet a strong business case for rolling out the technology on a large scale.
Cost efficiency, often cited as a major driver of AI adoption, also failed to deliver a clear benefit. BetGames reported that generating and operating an AI avatar around the clock remains resource-intensive, limiting potential financial gains compared with human hosts.
Technical hurdles further complicate the widespread adoption of AI presenters. One of the most significant challenges remains achieving realistic text-to-speech performance. As AI technology becomes more advanced and visual realism improves, even minor imperfections in speech become increasingly noticeable to audiences.
Other constraints include latency issues, lip-synchronisation delays and inaccuracies in real-time translation — all critical elements that must be refined before the technology can be implemented reliably across live products.
BetGames continues to explore the potential of AI under the leadership of CEO Andreas Koeberl, who is also co-founder of Autonomous Minds, the developer behind the AI analyst Milo. The initiative forms part of the company’s broader strategy to experiment with emerging technologies and help future-proof the iGaming industry.
Koeberl said:
“AI has been building momentum, but its role within the live casino sector remains largely untested. When it comes to AI presenters, we built it, it worked, and nobody cared. That raises the question of what we are actually working toward.
“The technology didn’t produce any meaningful positive or negative impact on the player experience or product margins, and the cost of running an AI avatar 24/7 offers no significant advantage compared with employing human presenters.
“So rather than attempting to replace humans and replicate what already exists, the focus should shift to exploring what AI can enable that wasn’t previously possible. That’s where the real value lies.”
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AI
New Videoslots app stars in AI-assisted “Stone Age” ad
Pioneering online casino Videoslots is preparing to launch a new television campaign in Sweden to promote its newly released mobile app for iOS and Android.
The advert, titled “Stone Age,” recreates a cinematic prehistoric world and was produced using artificial intelligence as part of the creative and production workflow. The use of AI enabled the team to bring the ambitious setting to life in a way that would have been significantly more expensive through traditional production methods.
The campaign was created in partnership with Stockholm-based Armstrong Film and has also been adapted in English and Danish for distribution across digital and social media channels.
Marco Trucco, Chief Marketing Officer at Videoslots’ parent company Immense Group, said the decision to incorporate AI was driven by creative possibilities rather than technological novelty.
“The creative idea was entirely human-led,” Trucco explained. “AI simply helped us execute the concept in a way that would have been very costly using traditional production methods. For us, it was about unlocking creative freedom.”
Philip Karlberg, Executive Producer at Armstrong Film, noted that the prehistoric theme presented a number of practical challenges.
“Designing characters and adapting performances across three languages would typically require several separate cast productions,” he said. “Using AI allowed us to approach that ambition differently. However, AI doesn’t replace filmmaking. You still need a strong concept, clear storytelling and a defined visual direction. The work doesn’t disappear — it simply shifts from physical production to detailed planning, direction and refinement.”
Trucco added that the project highlights how AI could reshape the future of television advertising.
“High-quality TV production has traditionally required substantial budgets,” he said. “AI has the potential to allow more brands to compete creatively with larger advertisers. Better advertising ultimately leads to a better viewing experience, more choice for consumers and stronger competition in the market. At Videoslots, we’re pleased to launch an original and entertaining TV advert to introduce our new apps.”
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AI
Despite AI’s Rise, Fraud Teams Keep Growing — SEON 2026 Report
SEON, the command centre for immediate Fraud Prevention and AML Compliance, has unveiled AI Reality Check: 2026 Fraud & AML Leaders Report, the second iteration of its sector research, derived from a worldwide survey of 1,010 leaders in fraud, risk, and compliance spanning payments, fintech, financial services, retail, eCommerce, and gaming.
The figures reveal an unforeseen narrative: AI is ubiquitous, yet operations are not becoming easier to manage. Currently, 98% of organizations utilize AI in fraud and AML processes, with 95% expressing confidence in its effectiveness; meanwhile, headcount plans rose from 88% to 94% year-over-year, and 83% anticipate budget increases in 2026.
Complexity Is Surpassing Automation
AI has not lessened the workload — it has revealed the extent of work that has always existed. Fraud losses are increasingly approaching revenue growth, threats are advancing more rapidly, and disjointed systems restrict the true potential of AI at scale. Key year-over-year shift:
Leadership’s confidence in their teams’ performance is lagging. The number of leaders who disagreed with the statement, “fraud losses are growing faster than revenue,” dropped by almost 40% from the previous year
Inside the Numbers:
AI is baseline, not experimental
- 98% already integrate AI into daily workflows (only 2% still planning)
- 95% are confident AI can detect and prevent fraud (52% very confident)
- Top use case: AI/ML for transaction monitoring (30%)
Fraud and AML investment keeps climbing
- 83% expect fraud/AML budgets to increase in 2026
- 94% plan to add at least one full-time hire (up from 88% in 2025)
- 85% plan to add a vendor, 49% plan to replace one
Fragmentation is the bottleneck
- 95% claim “some integration” between fraud and AML systems
- Only 47% run fully integrated workflows; the rest rely on partial connections
- 80% say getting a unified view of data is challenging
For many, time-to-value remains slow
Only 10% go live in under two weeks
38% take 1–3 months, 24% take 4+ months
When implementations run long, top impacts include increased costs (52%) and prolonged fraud exposure (47%)
Teams are growing, not shrinking
94% plan to increase headcount despite automation gains
85% see AI agents as support/augmentation, not replacement (only 12% see eventual replacement)
Top fraud threats reported:
- Account takeovers: 26%
- Promo/discount abuse: 18%
- Return fraud: 18%
“Fraud and financial crime were supposed to become more manageable as AI matured,” said Tamas Kadar, CEO and co-founder, SEON. “Instead, 2026 is the year leaders are confronting a more complicated reality. AI adoption is real, confidence is high, but the scale and pace of fraud — compounded by fragmented systems — continue to drive increased investment rather than reduced overhead. The bottleneck is no longer whether AI works. It’s everything around it: disconnected data, siloed teams, slow implementations. The organisations that pull ahead will be the ones that unify fraud and AML intelligence, shorten the distance between threats and controls, and treat integration as strategy, not plumbing.”
Fast-Growing Companies Invest in Integration Early
Organisations growing 51%+ are nearly twice as likely as slower peers to report that achieving unified visibility is “not very challenging.” They treat integration as infrastructure, not an IT project.
What’s Next: From “Does AI Work?” to “Can We Trust It?”
With adoption near-universal, the conversation is shifting to governance, explainability and accountability:
- 78% say decentralised digital identity will become central to fraud/AML
- 33% cite data privacy regulations (GDPR, CCPA) as the biggest external force shaping AML
- 25% point to criminals’ advancing use of AI and obfuscation techniques
The post Despite AI’s Rise, Fraud Teams Keep Growing — SEON 2026 Report appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.
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