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New report today reveals a staggering 85% increase in online fraud with over a fifth of all online traffic now an attack
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In the UK: gaming, online streaming and social media sites, travel and retail/ecommerce companies are the worst hit by fraudsters
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Experts also find that the metaverse is already fast becoming a fertile breeding ground for cybercrime and newly defined, ‘Master Fraudsters’
A new report released today, The 2022 State of Fraud and Account Security, is warning UK commerce that it faces its most challenging year ever. Experts from the Arkose Labs Network, an online fraud deterrence platform, analyzed over 150 billion transaction requests across 254 countries and territories in 2021 over 12 months to discover that there has been an 85% increase in login attacks and fake consumer account creation at businesses. Alongside this, it identified that a quarter (one in four) of new online accounts created were fake. A further 21% of all traffic was confirmed as a fraudulent cyber attack.
“From the earliest days of online information to the rapid evolution of today’s metaverses, the internet has come a long way. However, this latest data shows that it is more under attack than ever before,” said Arkose Labs Founder and CEO Kevin Gosschalk.
He continued: “Your digital identity is a currency for fraudsters and wherever there is online commerce, cybercriminals are quick to identify vulnerabilities.”
The new report focused on a number of key themes:
The Worst Attacked Sectors in the UK
The latest research took a deep dive into UK business specifically to understand which sectors were the most attacked by online criminals. The ongoing popularity of online gaming puts it top of the list for fraudsters with almost half (46%) of all the attacks in the UK, as seen by Arkose Labs. Digital media companies (social networks and online streaming platforms) are also high value targets and represent a third of all attacks, seeing an 88% increase since 2020. Across all sectors including ecommerce/retail, travel, gaming, financial services, one in every four new online accounts created were fake throughout 2021.
Metaverse companies are more likely to be targeted by “Master Fraudsters”
The rise of virtual worlds has created new attack opportunities for bad actors. Early insights from the Arkose Labs Network show scams, microtransaction abuse, and unfair play are the top threats in a metaverse world. These companies experienced 80 percent more bot attacks and 40 percent more human attacks than other businesses. “Master Fraudsters” attack their targets by scripting together multiple tools with intense persistence. They combine bots and human fraud farms, and invest large amounts of capital, creating virulent attacks. Top attack patterns Master Frauders use to disrupt fair commerce include microtransaction fraud, spam and scams.
Crypto-fraud sees Asia overtake Russia as the world leading attacking region
In prior years, Russian attacks were more common, but in 2021, attackers from Asia took the top spot, with 40 percent of all attacks coming from this region. One in every two Asian attacks originated from China. Leveraging an ecosystem of tools and low-cost resources, two-thirds of Chinese attacks targeted registration, primarily driven by abusing free trials at cloud computing platforms for crypto mining.
Credential Stuffing attacks see a significant spike
Attacks are more volatile than ever. A single attack can consume nearly 80 percent of traffic at peak periods, and in 2021, credential stuffing spikes hit up to 76 million per week. Attack rates doubled during peak season in November, making it the most dangerous month in 2021. Bots were used almost exclusively in Black November.
The Intelligent Bot
Attackers have continued to invest in increasingly sophisticated bots. Bots mimic human behavior with a high degree of accuracy and in 2021 accounted for 86 percent of all attacks. Today’s bot signatures are three times more complex than signatures of previous years. This level of sophistication makes it more difficult to assess risk and make accurate decisions. Businesses require even more sophisticated analysis to detect anomalies and prevent loss.
Arkose Labs provides support for some of the world’s most recognized brands and platforms, including Honey, LinkedIn, Microsoft, PayPal, Pitney Bowes, Roblox, Venmo, and Zilch, covering industries, including financial services, fintech, gaming, retail, technology and social media, representing more than 1 billion social media users, 60 percent of online video gamers, and 40 percent of all retail volume.
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Casino-Groups
Sebastian Jarosch Becomes Head of AI at Casinos Groups
Sebastian Jarosch is no longer solely the founder and managing director of Casino Groups as he is also taking on the role of Head of AI, at least on an interim basis. This personnel decision marks a conscious step towards closer integration of corporate management and technological responsibility.
In future, Jarosch will not only be responsible for the strategic direction of the company, but also for the further development of the AI systems that already form a central part of the product landscape. Casino Groups is one of the best-known platforms, which has been using and continuously developing an AI-supported rating system for online casinos for some time.
The decision to anchor the role of Head of AI directly at management level was a conscious one. Artificial intelligence now influences almost all areas of the affiliate business, from content structures and data analysis to regulatory documentation and product logic. Such a development requires decisions that bring together economic objectives, technological possibilities and legal frameworks.
Sebastian Jarosch brings this perspective from years of experience in the iGaming sector. As an entrepreneur, he is familiar with economic dependencies as well as the challenges of increasing regulation. The additional responsibility in the AI area makes it possible to set technological courses more quickly, define priorities more clearly and establish innovation as an integral part of corporate management.
The new role of Head of AI fits in perfectly with current developments in the iGaming market. Increasing regulatory requirements, rising acquisition and content costs, and the growing influence of AI-powered search systems are changing the economic fundamentals of the affiliate business. Visibility is no longer achieved solely through reach, but through authority, consistency and verifiable quality.
With this appointment, Casino Groups is sending a clear signal to the outside world. Affiliate companies are increasingly being valued like media or technology companies. Partners and investors are placing greater emphasis on compliance, data competence and sustainable product development. The bundling of management and AI responsibility strengthens the company’s credibility in these areas.
At the same time, Casinos Groups is positioning itself as a player that does not delegate innovation, but actively drives it forward. The interim nature of the role creates space for further development and adaptation without diluting the strategic ambition. For the industry as a whole, this step underlines that AI expertise has arrived at the management level.
The role of Head of AI forms the organisational foundation for this development. It ensures that technological innovation, editorial standards and economic objectives are interlinked. Casino Groups is thus pursuing a clear line: technology as a tool, people as an authority and quality as a connecting element.
The post Sebastian Jarosch Becomes Head of AI at Casinos Groups appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.
CONOR DURNIN
THE UNIT ANNOUNCES APPOINTMENT OF CO-FOUNDER CONOR DURNIN TO LEADERSHIP TEAM
The Unit, the leader in product design and development for iGaming and sports betting, has announced the appointment of Conor Durnin to its leadership team.
Durnin, who co-founded The Unit in 2018, played a foundational role in the company’s early vision and direction. His appointment marks the first time he has taken on an active position within the business, as The Unit continues to scale its work with operators, platforms, and suppliers in the global iGaming and betting sector.
In his role, Durnin will focus on strengthening The Unit’s product strategy expertise, supporting complex client engagements, and helping guide the company’s next phase of growth as demand increases for outsourced development of differentiated and innovative betting and gaming products.
“From the outset, The Unit has set out to raise the standard for outsourced product development in betting,” said Durnin. “Stepping into this role allows me to focus on supporting the team as we help our partners build scalable, world-class products.”
Having previously held senior roles at brands including Boylesports, Grand Parade and SportCaller, Durnin brings extensive experience in product leadership, engineering, and delivery, with a reputation for bridging commercial objectives and technical execution. His approach aligns closely with The Unit’s focus on building world-class products that prioritise user experience and long-term sustainability.
“The Unit was founded to challenge conventional thinking around betting and gaming product design, and Conor will play a pivotal part in this going forward,” said Paddy Casey, Co-founder at The Unit. “As the business continues to flourish, adding Conor is a natural step and reflects the ongoing pace of expansion at The Unit.”
Durnin’s arrival comes as The Unit continues to expand its footprint across sports betting and iGaming, working with clients on outsourcing options, product development, UX/UI, platform architecture, and industry-leading technical design.
With offices in Ireland, Moldova, Gibraltar, and a US hub in New York, The Unit has an unflinching commitment to becoming the partner of choice throughout the industry. In addition to its broad-ranging nearshore product development, the team now boasts a strong track record of building world-class products for the sports betting and iGaming sector over the last decade.
The post THE UNIT ANNOUNCES APPOINTMENT OF CO-FOUNDER CONOR DURNIN TO LEADERSHIP TEAM appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.
Compliance Updates
St8 Secures Sweden B2B Licence, Adding Another Regulated Market
Casino games aggregator St8 is poised to expand into another significant regulated market following the receipt of a B2B supplier license from Sweden’s Gambling Authority, Spelinspektionen.
This indicates that St8 can now offer its aggregator technology to operators licensed in Sweden for the first time.
These operators obtain access to an advanced platform renowned for achieving seamless integrations within days through a single API.
Vladimir Negine, founder and CEO at St8, said: “Being awarded a B2B licence by Spelinspektionen underlines the strength of St8’s technology and compliance-first approach. Sweden is one of Europe’s most respected regulated iGaming markets, and we are excited to now be able to support licensed operators there with our next-generation aggregation platform.
“Our focus remains firmly on expanding in regulated jurisdictions, and adding Sweden further strengthens St8’s position as a trusted supplier to operators in leading global markets.”
Spelinspektionen is recognized for upholding some of the strictest player protection standards in iGaming,
St8 has quickly grown into several prominent regulated markets in recent months. In October, it received a supplier license in Ontario, and in July it obtained a B2B license in the United Kingdom.
The post St8 Secures Sweden B2B Licence, Adding Another Regulated Market appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.
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