Exposing the Fraud Risks of Unregulated Offshore Gambling
Ophion Risk is proud to feature MD Josie Preston’s contribution to an important article on Casinos.com, which sheds light on the dangers posed by unregulated offshore gambling platforms and advanced fraud tactics in the industry.
Key Takeaways include –
Criminal Exploitation in Offshore Gambling
Offshore, unregulated gambling platforms often disguise criminal operations with polished user interfaces and enticing bonuses. These platforms may then exploit gamblers by harvesting personal and financial data for fraudulent purposes or for resale on dark web marketplaces.
Jurisdiction Challenges
Criminal operators take advantage of jurisdictions with weak Anti-Money Laundering (AML) laws, corporate transparency, and regulatory oversight, making identification of the perpetrators and victim compensation difficult.
Fraudulent Schemes Targeting Gamblers
Players whose accounts or data are compromised face risks such as Account Takeover (ATO) attacks, where criminals drain wallets, and may engage in laundering of criminal funds through the victim’s account via ‘Cuckoo Smurfing.’
Sophisticated Phishing and Social Engineering
Generative AI and deepfake technology are increasingly used in phishing schemes, and/or to pose as the criminally-controlled gambling platform’s Fraud or Customer Support representatives to socially engineer victims into divulging further sensitive financial/banking information, potentially leading to Authorised Push Payment (APP) fraud.
The Importance of Cyber Hygiene
Gamblers are advised to use unique usernames and passwords across gambling platforms to prevent universal online account takeovers, emphasising the need for proactive security measures.
This comprehensive analysis highlights the evolving fraud landscape and underscores the need for greater consumer awareness when engaging with operators in the black market iGaming environment.
Read the full article on Casinos.com to gain deeper insights.