The Winner Strategy: How to Prevent Ad Fraud in Gambling?

The gaming industry has covered a long way from creating the simplest games to entire virtual worlds. It has no doubt already become a prominent part of modern culture, namely – a subculture with millions of fans around the world.

According to the research of H2 Gambling Capital (H2G) company, the capitalization of the worldwide gambling market amounted to $651 billion in 2021.

The global pandemic has contributed as well: the average number of active players per day has significantly increased. With almost 26% of the world’s population playing gambling games more or less regularly, the market is anticipated to reach more than 92.9 billion US dollars in 2023.

Like any profitable sphere in which huge sums of money move every second, the world of iGaming is very attractive for fraudsters. Due to the impersonal transactions and easily-fiddled metrics, ad fraud is one of the biggest challenges faced by advertisers and publishers today.

Let’s briefly discuss the most common fraud scheme. Assume that an advertiser pays for registrations with verified phone numbers or emails. To commit fraud, an affiliate specialist registers himself and asks for acquaintances to do the same. Or else – he simply drives the bot traffic. This affiliate will get paid for such actions, but the advertiser won’t get anything. The problem is that bots and fake registrants never make any deposits.

Also, gambling companies fall prey to unfair competition. Competitors are using click fraud as means to deplete your marketing budget and eliminate your ads from the results pages.

While not all companies use such extreme methods to get rid of competition, the situation with gambling fraud is tense enough: fraud victims suffer from low ROI and poor campaign performance.

Considering such impressive sums, payment providers deploy enormous resources to develop better technologies and therefore – minimize the risk of fraudulent transactions. Unfortunately, virtual gambling is extremely vulnerable to fraud, as there are many different ways to manipulate transactions here.

Constant attacks such as credential stuffing, chargeback fraud and bonus abuse mean that the risk teams have to remain alert, prepared, and deliver the best performance at all times. Otherwise, the advertiser’s budget goes down the drain.

ADEX, an expert in fraud-free advertising, suggests a number of approaches to fight, detect, and prevent fraudulent traffic pervasive in the gambling industry.

Analyzing numerous campaigns of four large gambling companies with numerous GEOs around the globe, they stumbled upon various fraud schemes and defined which ones prevail around the market.

Based on the statistics and experience, ADEX reveals some possible directions and methods fraudsters might take in the near future.

We have also figured out which regions are prone to fraud more than others and eagerly present the results of our findings in stats.

Interested? Get a free report and increase a chance to protect your current campaigns smartly and find a way to shield yourself from the upcoming threats!