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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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QTech adds Phantom content to its aggregation platform
Supplier deal brings instant-win, crash, table games and cinematic slots to operators across QTech’s emerging-markets network.
QTech has signed a new supplier partnership with Phantom, adding the studio’s catalogue of instant-win, crash and “cinematic slots” content to QTech’s aggregation platform.
QTech said the integration expands its content offering for operators in emerging markets, positioning Phantom’s games alongside other suppliers on its platform. The company also framed the addition as a fit for mobile-first audiences and shorter play sessions.
According to the companies, Phantom’s games are designed to be lightweight and fast-loading—an approach aimed at markets where handset performance, network speeds and data costs can affect gameplay, including parts of Africa and Latin America.
QTech CEO, Philip Doftvik, said: “We’re dedicated to rolling out more and more high-class content and product innovation that drives revenue for our partners. So, this deal with Phantom extends our impressive sequential pipeline for 2026, and underlines our ability to deliver tailored content solutions for local markets, particularly in regions where lightweight, fast-loading games are key to player engagement.”
Natalie Pierce, Head of Marketing at Phantom, added: “At Phantom we create out-of-the-box gaming content designed for specific markets, player groups, and unique experiences to push the boundaries of casino content. We specialize in fast-paced, original casino games that bring instant excitement and big wins, crash, mines, dice, limbo, plinko, and more. QTech’s aggregation platform is a renowned gateway to new audiences worldwide, and we can’t wait to see how our highly engaging games perform across a largely untouched swathe of emerging markets for Phantom.”
The post QTech adds Phantom content to its aggregation platform appeared first on EE Gaming | Global iGaming & Tech Intelligence Hub.
All Eyes on Football: EGT Team Picks
EGT launches World Cup 2026 social series “All Eyes on Football: EGT Team Picks”
Employees from EGT’s in-house football team will publish match predictions via social media activations during the tournament.
Euro Games Technology (EGT) is rolling out a World Cup 2026 social media initiative called “All Eyes on Football: EGT Team Picks,” featuring match predictions from members of the company’s employee football team.
EGT said the activations will run during the tournament and focus on selected key matches, football nations and the knockout stages. The company plans interactive content that lets audiences compare their picks with the team’s predictions.
EGT’s football team was founded in 2006 and includes employees across departments. “What started as colleagues gathering to play football after work gradually became an important part of the company culture,” shares Nikolay Georgiev, Production Director at EGT, captain, striker and coach of the EGT football team.
Georgiev added: “Football helps us build strong relationships and better communication between different teams. We understand each other more easily, sometimes even without words. Besides being professionals in their respective fields, this initiative will show that we also know how to have fun together while following one of the biggest sporting events in the world.”
The company named eight team members who will provide predictions: Nikolay Georgiev (Production Director), Blagovest Tsenov (Senior Supply Specialist), Antoan Vasilev (Production Coordinator), Rafaelo Markov (Deputy Unit Manager), Hristo Velchev (Unit Manager), Angel Angelov (Production Manager), Tsvetоslav Dimitrov (Electronics Technician) and Konstantin Tsvetkov (QA Engineer). EGT said it will introduce the participants over the coming weeks, alongside their roles and interests outside work.
The post EGT launches World Cup 2026 social series “All Eyes on Football: EGT Team Picks” appeared first on EE Gaming | Global iGaming & Tech Intelligence Hub.
casino fined
Dutch Duty of Care Fine Ramps Pressure On Industry Under Siege
The Netherlands Gambling Authority (KSA) has fined an operator over €880,000 for not treating its customers with adequate care, creating highly unwelcome negative PR for the industry at exactly the moment when it is desperate for positivity.
The KSA announced today (June 11) that it was fining licensed operator 711 a total of €886,000 for a series of duty of care failings, having found violations in all ten player files that it requested to view.
As part of its routine compliance sweeps, the regulator requested detailed gambling and customer care data on ten randomly selected high spenders at the operator.
The authority said that 711 had not properly analysed the gambling behaviour of its customers or taken the right measures to intervene when they showed signs of risky play.
In one case a player was allowed to lose €40,000 in four days before they were contacted for a wellness check and a source of funds request, the KSA said.
The contact that did take place was also not sufficiently in-depth to identify if the individual had a gambling problem, the regulator added.
In another case, a player was allowed to lose almost €200,000 over several weeks before they were contacted for a source of funds check, the KSA said.
The fine is the latest in a series of penalties related to the duty of care that operators own to their customers, which unlike many other European nations is an established part of the country’s gambling act.
The largest penalty so far is a €4m fine for Unibet operator Optdeck, but regulatory officials have said they continue to find failings on their random sweeps.
711 declined to give a comment to EEGaming, saying that it has a policy of not speaking with the press.
The decision by the KSA can be appealed.
The bigger context
The penalty for 711 is not the first punishment for duty of care failings in the Netherlands and it is unlikely to be the last, but this particular fine comes at a pivotal moment for the future of Dutch gambling.
The industry is awaiting a statement from minister Claudia van Bruggen on how she will change gambling policy over the next year.
She is under extreme pressure from several organised groups within parliament to enact tough new rules on a market that is already struggling to keep players out of the black market.
Most notably there have been repeated calls for a complete advertising ban, in addition to the existing ban on all non-targeted gambling advertising in the Netherlands.
A complete ban is opposed by the KSA, which revealed recently that it had held meetings with van Bruggen to make their case and said she “took our concerns very seriously”.
There have also been calls for a hard cap on the number of online gambling licences in the Netherlands, something that the KSA also argues is not in the best interests of consumers.
However the issuing of yet another reputation-damaging fine for the sector further adds to the risk that van Bruggen will feel a need to give in to public and political pressure and really turn the screw on the beleaguered sector.
Experts estimate that channelisation for online gambling in the Netherlands may be as low as 45 percent.
Rates of gambling with licensed operators have collapsed following the introduction of deposit limits, which can only be removed via affordability checks, and tax increases which have seen rates rise to 37.8 percent of gross gambling revenue.
One small crumb of relief for the industry will be upcoming proof of what something they warned would happen: Increasing the tax rate has resulted in lower income for the government, as players likely stop gambling or seek better odds offshore.
“A new impact assessment of the gambling tax will probably be published at the end of June, showing that the increase in the gambling tax did not achieve its intended goal,” revealed KSA head of licences and supervision, Ella Seijsener, speaking at the recent Gaming in Holland conference.
Analysts suggest that growth in the online market has slowed rapidly in recent months and that although channelisation may not decline further from here under current market conditions, there is equally little hope of lifting it back above 50 percent as things stand.
But far from an easing of rules, the local industry expects things to get tougher from here and are simply hoping that van Bruggen’s manifesto for the next phase of Dutch gambling regulation avoids some of the more extreme measures called for by her fellow politicians.
The post Dutch Duty of Care Fine Ramps Pressure On Industry Under Siege appeared first on EE Gaming | Global iGaming & Tech Intelligence Hub.
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