iGaming Operators Must Adopt Proactive Fraud Measures

Online gaming operators must adopt a proactive approach in working with regulators and payment providers to tackle fraud effectively, according to Ian Campbell, director of solutions at payment services provider Equals Money.

The iGaming sector has traditionally responded to fraudulent activity reactively, a stance that industry experts say is no longer sufficient. Research indicates that fraud in the sector surged by an average of 64% annually between 2022 and 2024, with half of online gambling companies reportedly losing 10% of revenue to fraudulent activity last year. “The complexity and sophistication of fraud, combined with mounting regulatory scrutiny, has put operators under increasing pressure,” Campbell said. “A reactive mindset hampers innovation and progress. Operators need to see integrated and progressive payment solutions as strategic levers rather than just backend functions.”

Onboarding as a Strategic Tool

Campbell highlighted joint onboarding protocols between operators and payment providers as a key method to prevent fraud. By embedding shared checks and data collection at the onboarding stage, operators can protect players and safeguard business operations. “One key area is joint onboarding protocols, and we onboard both the gaming company and their underlying customers,” he said. “This proactive approach reduces fraud further down the line, speeds up payment processing for genuine customers, and allows financial institutions to detect suspicious activity early.”

Direct onboarding assigns each client a unique IBAN, improving reconciliation and isolating issues quickly. Campbell noted that, if fraudulent activity occurs, the system can freeze transactions at the individual IBAN level without disrupting the broader customer base, a feature critical in a fast-moving industry.

Fraud is widely regarded as the leading barrier to payment innovation across industries. Equals Money’s research shows that 42% of businesses view it as their top risk. By embedding fraud prevention measures at the onboarding stage, operators can mitigate this risk while optimising payment flows. Campbell also underscored the value of data sharing across the sector. “Right now, there’s limited cross-industry sharing on what fraud looks like in iGaming. A shared ecosystem for fraud indicators would allow firms to spot and stop fraudulent activity faster.”

Real-Time Monitoring and API Integration

Real-time transaction monitoring is another cornerstone of modern fraud prevention. Campbell stressed that immediate detection of irregularities allows operators and payment providers to respond effectively while maintaining smooth customer experiences. APIs are central to this process, enabling fast and secure payments. “Instant payments are no longer a luxury – they’re expected,” Campbell said. “APIs allow seamless integration with financial institutions, ensuring speed without compromising safety or compliance.”

Artificial intelligence is increasingly leveraged to enhance scalability and fraud detection in iGaming. Research from Equals Money found that 95% of financial leaders are either using or considering AI in their operations. Campbell praised AI as “one of the most effective tools in fraud detection and monitoring,” but stressed that implementation must occur within safe, compliant frameworks.

Blockchain and stablecoins are also emerging as notable trends. With global stablecoin circulation reaching approximately $250 billion, Campbell anticipates accelerated adoption in Europe as lawmakers align with crypto-friendly policies seen in the U.S. Stablecoins, he said, can facilitate faster settlements and hedge against volatility, though regulators remain cautious due to potential fraud risks.

Operators should view payment solutions as opportunities, not challenges. By embedding security and compliance into every step of the payment journey, the industry can innovate while protecting both businesses and players.

Looking Ahead

Industry experts argue that only through collaboration, data-sharing, and proactive technology adoption can iGaming operators stay ahead of increasingly sophisticated fraudsters. As Campbell concluded, “Operators should view payment solutions as opportunities, not challenges. By embedding security and compliance into every step of the payment journey, the industry can innovate while protecting both businesses and players.”