TransUnion study reveals gambling sites a prime target for digital fraud
Report finds that more than 10% of all online gambling activities in 2023 fell under cyberfraud category due to data breaches and bonus exploitation
Digital fraudsters increasingly targeted the online gambling sector in the US last year, according to a new study from information and insights provider TransUnion.
The 21-page report found that the online gambling industry, which includes sports betting, online casino, and online poker, had a suspected digital fraud rate of 10.9%, making it the highest retail sector for such criminality in the US for 2023.
Meanwhile, 10.7% of newly opened gambling accounts were considered as potential digital fraud in 2023.
While the gambling industry’s exposure to potential cyberfraud in the US went up, worldwide, the industry, as a whole, witnessed a 30% year on year fall.
Retail experienced an 8.7% rate of suspected fraudulent digital transactions globally, the largest percentage growth in 2023, marking an increase of 21% over 2022, and a 34% growth in suspected digital fraud volume compared to 2022.
In addition, 5% of all global digital transactions were suspected of being fraudulent in 2023, with the volume thought to be digital fraud increasing 14% over 2022.
Despite retail’s overall exposure to fraud, it was online gambling that experienced the highest rate of suspected fraudulent transactions in 2023 in the six markets – Colombia, the Dominican Republic, Kenya, Puerto Rico, Spain, and the US – that were analyzed.
According to the report, which was based on exclusive insights from TransUnion’s own global network of reported fraud, TruValidate, the most common type of gambling fraud related to promotion abuse.
The study also highlighted that identity data or personally identifiable information (PII) is a prime target for cybercriminals and that synthetic identity fraud, where identities can be either invented or stolen, was the fastest growing form of digital fraud globally.
Reported data breaches and their severity levels – the capability of a breach to allow for identity fraud as measured by TruEmpower – reached a historic high in the US and played a part in the surge in suspected fraudulent accounts and rise in synthetic identities.
In the US, the number of data breaches rose 157% from 2020 to 2023, and the average data breach risk increased 11% year on year, the highest level ever recorded.