As the iGaming industry continues to expand, challenges such as bonus abuse are also rising. Casino bonuses offer players extra funds or free spins without requiring a substantial investment – some promotions are even free. As a result, punters may misuse them to get more money or free game rounds.
How can a casino operator detect such behaviors and prevent them? In this guide, we help you understand bonus abuse and how to identify and stop it.
What is bonus abuse?
Bonus or promotional abuse happens when a player misuses casino offers. They trick the system to get more than their fair share. Players can abuse bonuses, such as welcome offers, no-deposit bonus codes, free spins, and cashback.
Casino operators offer these promotions to attract new players and retain existing ones. Therefore, if a casino player uses them in a manner not intended by the operator, they are abusing them.
How to detect bonus abuse
In 2024, the iGaming Fraud Report revealed that 69.9% of all fraud in the iGaming industry was attributed to bonus abuse, resulting in substantial losses.
Here are some of the ways players abuse bonuses:
Creating multiple accounts
Each player should create only one account with an online casino. However, some casino players tend to create multiple accounts by modifying their personal information slightly to avoid detection. They do so to claim the available offers repeatedly.
Sharing accounts
Multiple players can exploit a single account to redeem offers, such as Bitofgold no deposit bonus codes, because they are risk-free. They achieve this by using VPNs or proxies to hide their exact location.
Unusual withdrawal requests
When a scammer repeatedly claims a bonus, they want to meet the terms and conditions quickly so that they can withdraw the cash. Hence, if you see a player sending withdrawal requests immediately after satisfying the minimum rollover requirement without further activities, it may be that they have abused an offer.
Different registrations from the same device or IP
A scammer can get registration details from their friends and create different accounts. This way, they claim bonuses using the different accounts. If you detect frequent sign-ups from the same device or IP address, there is a possibility of account farming, which leads to promotional abuse.
How to prevent bonus abuse
Bonus abuse prevention is possible in the iGaming industry. However, as operators do so, they shouldn’t disrupt the gaming experience of loyal players.
Some of the effective ways to prevent promotional abuse include:
Implement a Know Your Customer (KYC) process.
A robust KYC procedure helps casino operators to conduct proper and thorough identity verification. As a result, they can locate a scammer before they start abusing bonuses.
Usually, an effective KYC process should include proof of identity and address. This means that every player should provide documents to prove their identity, such as their national ID, passport, or driver’s license. For proof of address, you can request a utility bill or bank statement.
Strict bonus rules
This can be a tough one because players want bonuses with minimal terms and conditions. However, if a player only needs to register to get a promo, there is a high chance of abuse. Operators can add a layer of protection by requiring players to meet some requirements, such as verifying their email address or phone number and making a minimum deposit.
For no-deposit options, casinos can have rules such as unique bonus codes. For example, if you are offering no-deposit bonus codes for Christmas, don’t make it as simple as X-MAS because people can easily guess it.
Monitor players’ profiles and behavior
With advanced technology such as machine learning and AI, you can easily identify abnormal profiles and players’ behavior. For example, you can detect duplicate accounts and mismatched identity details.
Also, check on players’ account activities, sign-up frequency, and bonus claiming patterns. This will help in detecting fishy activities on time and avoid losses.
Educate players on the risk.
Players need to understand the risk of bonus abuse. Usually, operators ban players with such behaviors from their sites. Operators should state these risks clearly on the terms and conditions page.
Additionally, you can create regular campaigns to advocate for responsible gambling. This way, you turn your users into active participants who can help detect malicious activities.
One bonus: one user!
Casino users can abuse bonuses by creating multiple accounts, using VPNs and proxies to mask their location, or sharing their accounts. However, as an operator, you can prevent such behaviors to avoid losses by having a strong identification process, monitoring players’ behavior, and educating your users.
