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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

Published

4 years ago

February 8, 2022

George Miller

Reading Time: 3 minutes

In the UK: gaming, online streaming and social media sites, travel and retail/ecommerce companies are the worst hit by fraudsters
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.

Alec Gehlot Chief Executive Officer at PlaySignal

PlaySignal Debuts: Alec Gehlot’s New Sophisticated Responsible Gaming Platform

Published

56 minutes ago

February 25, 2026

Wladimir P.

playsignal-debuts:-alec-gehlot’s-new-sophisticated-responsible-gaming-platform

Alec Gehlot, previous senior executive at Optimove, has introduced PlaySignal, a responsible gaming platform aimed at assisting operators in identifying and addressing player risk promptly.

PlaySignal employs a traffic-light system featuring green, amber, and red signals to steer player conduct and indicate when behaviors start to enter higher-risk areas. The platform seeks to minimize avoidable exclusions by offering operators enhanced visibility of rising risks, while simultaneously giving players more understanding of how their actions are evaluated.

Leveraging behavioural analytics, PlaySignal tracks player actions during gameplay and displays information as distinct signals. This allows teams to act earlier and react more appropriately as risk evolves.

The product connects with current operator systems to assist responsible gaming, CRM, and compliance teams by providing a unified view of activities, encouraging a more uniform strategy among teams as regulatory demands grow in important markets.

Building on his time at Optimove, where he collaborated with operators on segmentation, retention, and user engagement, Gehlot recognized a demand for innovative tools to enhance player protection as regulatory and tax pressures mount in regulated markets.

The company launched PlaySignal at ICE earlier this year, where it was a contender in the Innovators Challenge, and initiated talks with operators in various markets. The initial launch will concentrate on the UK prior to global expansion.

Alec Gehlot, Chief Executive Officer at PlaySignal, said: “Regulation and taxation are only moving in one direction, and operators need new tools to adapt. Player protection can no longer be treated as a compliance obligation; it has to become a competitive differentiator.

“Regulated operators are under real pressure, particularly in the UK, and we believe giving them earlier visibility of risk is essential not just for protection, but for long-term sustainability.”

The post PlaySignal Debuts: Alec Gehlot’s New Sophisticated Responsible Gaming Platform appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.

Compliance Updates

BGC Response to Government Plans to Stop Premier League Clubs Accepting Sponsorship from Gambling Operators Not Holding a UK Licence

Published

56 minutes ago

February 25, 2026

Wladimir P.

bgc-response-to-government-plans-to-stop-premier-league-clubs-accepting-sponsorship-from-gambling-operators-not-holding-a-uk-licence

The Betting and Gaming Council (BGC) strongly supports government plans to ban Premier League clubs from accepting sponsorships from gambling operators lacking a UK licence.

A Betting and Gaming Council Spokesperson said: “The Betting and Gaming Council welcomes the Government’s plan to act to stop Premier League clubs accepting sponsorship from gambling operators that do not hold a UK licence.

“Culture Secretary Lisa Nandy is right that gambling companies without a UK licence should be banned from sponsoring Premier League clubs and should go further to prevent these harmful illegal companies from sponsoring any sport in the UK.

“At a time when the regulated sector is facing significantly higher taxation and ever tighter regulation while reducing advertising spend, it is more important than ever that firm action is taken against the growing harmful black market.

“Licensed members of the Betting and Gaming Council are regulated in Britain and follow strict rules on consumer protection, safer gambling and robust financial safeguards. Whereas, the illegal, harmful black market operators do not. They undermine player protections, avoid taxes, ignore safer gambling standards and put consumers at serious risk.

“We support action that protects fans, upholds standards and keeps customers safe within the regulated market.”

The post BGC Response to Government Plans to Stop Premier League Clubs Accepting Sponsorship from Gambling Operators Not Holding a UK Licence appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.

Australia

Tabcorp Pays $158,400 Penalty for Taking Illegal In-Play Sports Bets

Published

56 minutes ago

February 25, 2026

Wladimir P.

tabcorp-pays-$158,400-penalty-for-taking-illegal-in-play-sports-bets

Tabcorp Holdings Limited (Tabcorp) has paid a $158,400 penalty for taking online in-play sports bets, which is illegal in Australia.

An Australian Communications and Media Authority (ACMA) investigation found Tabcorp accepted 426 in-play bets across 32 tennis matches between February 2024 and June 2025.

Online in-play betting, wagers made on a sporting event after it has commenced, is prohibited in Australia under the Interactive Gambling Act 2001 (IGA).

The online in-play sports bets that were accepted in breach of the IGA were voided by Tabcorp and the bets were refunded.

The ACMA accepted the evidence from Tabcorp that the breaches occurred due to systems and communication issues with its third-party provider.

ACMA member Carolyn Lidgerwood said this is the third time since 2021 that Tabcorp has breached the in-play betting rules.

“The law is clear and wagering services must have processes in place to prevent illegal in-play bets from being accepted,” Ms Lidgerwood said.

“While we understand that most wagering operators rely on third-party providers to close betting on sporting events, they cannot outsource their legal responsibilities.

“The length of time it took Tabcorp to identify and then fix the problem was concerning and we expect Tabcorp to do better in the future,” Ms Lidgerwood said.

In addition to the financial penalty, Tabcorp has entered into a comprehensive enforceable undertaking requiring the company to undertake a review of its systems and processes relating to the closing of betting on tennis matches and to report regularly to the ACMA.

The post Tabcorp Pays $158,400 Penalty for Taking Illegal In-Play Sports Bets appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.