How to detect and avoid frauds and forgeries

Fraud is the most expensive (and stressful) liabilities organizations face. Today’s rapid transactions and the ever-evolving fraudulent tactics have made it hard to identify, prevent and recover from.  Accounting frauds, data theft, payment fraud, asset misappropriation, and corruption can cause millions of financial damages. Thus, it is important to implement proper strategies to detect and prevent fraud. From a corporate business to online gambling, all financial matters bear a risk of fraud and/or forgeries. Today, we will tell how to detect and avoid fraud in the online gambling industry.

Tips to Avoid Fraud and Forgeries 

The gaming industry has always been at a high risk of fraudulent activity – from online money theft, fake credit cards, stolen identification, and counterfeit money. However, one thing that's near impossible to forge are casino chips as casinos have spent years figuring out ways to protect this valuable asset.

So, to avoid any scams, and to be as challenging to forge as a casino chip, it is best to know the difference between real and fake. Let us take a look at how you can detect and prevent such frauds:

  1. Risk Assessment 

Any system, no matter how perfect, is susceptible to certain risks. Identify the weak areas where the risk of fraud exists and assess those risks for possible damage. Once you know what the risks are, punt in place risk prevention strategies – also known as, risk tolerance. Risk tolerance varies from business to business. Make sure you implement appropriate risk controls. For example, an unsecured online transaction can lead to theft and hackers, adding SSL encryption will be the best way to control this risk.

  1. Spot Online Fraudsters 

According to statistics, the global cybercrime industry will grow by $6 trillion by the end of 2021. This is perhaps one of the most important points when it comes to online financial fraud – especially in gambling. All users on the website should go through a thorough authentication process to avoid online fraudsters like scammers and hackers. ID verification, age verification, and location status are all ways to verify the users. 

  1. Monitor and Audit 

Regularly monitoring and auditing will help identify any risks of fraud. Regular monitoring also helps identify broken or ineffective controls. It will also help you test, strengthen and validate the effectiveness of controls. Audits are crucial for managing the business risk of fraud. With the help of repetitive analysis to detect any fraudulent activity, you can avoid thousands and millions of losses. If you have an online setup, implement remote auditing or virtual auditing techniques.

  1. Hire Experts 

Did you know you can hire fraud experts? Such experts offer high-quality services like fraud assessment training, real-time analysis, security management and fraud prevention. Invest in certified and qualified individuals or organizations to test and set up anti-fraud systems. You can hire experts like fraud forensics, accountants, fraud examiners, etc. This will also ensure that all your financials and private information are handled professionally. They can also be hired to investigate current or past fraudulent activity – better late than never, right?

  1. Use AI technology 

Artificial Intelligence (AI) is a great resource against fraudsters. AI can be used to mitigate and avoid online fraudulent activities. Investing in risk-based technology will add a lot of protection to your platform. For example, anomaly detection is a popular AI technique that many banks and high-ranking casinos are using today.  It identifies deviations and unusual transactions for automating cybersecurity, anti-fraud and anti-money laundering transactions. You can use AI for client verifications, detecting suspicious behavior, and identifying online threats. 


Fraud is the fastest growing crime in the world – especially financial fraud. It has spoiled many businesses, investments and reputations. Fraud and forgery can happen anywhere, but online casinos and gambling websites bear a higher risk. Since these platforms are operating as digital wallets, many online fraudsters are waiting to steal. However, there are many ways to mitigate the risk of fraud. We have mentioned some practical and effective tips in this article to help you detect and avoid fraud. Implement those tips and your platform will be safe for all users!

Share this