With over 25.5 million people in the UK gambling each year and the global casino industry valued at £300 Billion, applying artificial intelligence (AI) in fraud detection becomes necessary. However, security threats increase as more people use Internet casinos for entertainment. The digital shift has significantly increased malicious cyber attacks and unethical behaviour.
According to the UK government’s latest report on AI, the artificial intelligence sector in the UK is predicted to grow to £1 trillion by 2035.
The industry has many questions regarding AI at casinos. Will players eventually make AI-driven decisions, and will these systems maintain the integrity of a player’s gaming experience?
Top online casinos already use Artificial Intelligence to analyse player behaviour and promote responsible gambling. Operators also use AI analytical instruments to study player patterns and improve the gaming experience by predicting games and offers they are likely to enjoy. But how does AI impact cyber security?
The Threat of Internet Casino & Gaming Fraud
Artificial intelligence utilises high-speed algorithms with large quantities of real-time data to identify trends and detect malicious patterns. These systems are designed to alert the casino’s security team so that they can take necessary steps to investigate, prevent, and stop any cyber threats.
To understand the importance of AI detecting and tackling online casino fraud, it is vital to acknowledge the scope of the problem. Here are some common security threats at UK casinos:
| Security threat | What they involve |
|---|---|
| Fraud on chargebacks | Online scammers make casino deposits using stolen credit cards. Casinos lose money when the legal account holders dispute the deposit and request chargebacks. |
| Fraud via proxies | Some affiliate marketers use disingenuous marketing plans that drive cheap traffic to iGaming websites even though they get paid. |
| Multiple accounts | Scammers can open numerous accounts, rig games and abuse bonuses. |
| Bonus misuse | Scammers take advantage of casino bonus offers and use questionable methods to meet wagering requirements, causing casinos to lose money. |
| Account takeover and Identity theft | Unauthorised access to a player’s account & stealing funds using stolen credentials. The casino faces losses when the actual owner reclaims the account. |
| After goal betting | Some users take advantage of a sports betting site by reacting to live events late. |
How online casinos are using AI for fraud detection
In the UK, AI technologies, including data analytics and machine learning (ML), are playing vital roles in combating fraud at internet casinos. The fact that AI-powered instruments are capable of real-time analysis makes them super efficient in detecting suspicious behaviour and malicious activities.
We are glad that some of Britain’s safest online casino sites and apps adopt AI-powered systems. This means users can comfortably play all their favourite games with the guarantee that their data is secure.
However, some organisations have expressed concerns regarding AI and responsible gambling.
“All talk of using AI to boost customer experience needs to be carefully managed and offset to ensure Artificial Intelligence becomes a force for good in detecting signs of gambling addiction and preventing gambling-related harms.” – Zoë Osmond, Chief Executive, GambleAware.
Machine learning algorithms in casinos
ML algorithms are being used to monitor players’ financial activities and gaming patterns. The current AI-powered algorithms can identify even the most subtle anomalies. For example, if a player always wins a massive sum of money in blackjack games, the system might flag the account for investigation. The system will then detect whether the wins are legitimate or if a cheat code is involved and trigger a security protocol if fraud is detected.
AI is also making its way into gamification, with software developers using artificial intelligence to design games. So check out a detailed guide about slot algorithms and how they affect RTP and payout.
Account authentication
One of the biggest problems British online casinos face is scammers who steal information and use their credentials to log in to a verified account. They then withdraw the funds to another fraudulently created e-wallet.
AI technology solves this complication by enhancing authentication processes. The technology analyses biometric data, device information and user behaviour. Nowadays, artificial intelligence can detect unauthorised account access.
Protecting data and payments
There are about 40 million UK casino account holders and 12 million individual transactions each quarter. Therefore, British casinos have to process a massive amount of sensitive data. In addition to financial information, the operators also host personal information such as physical addresses and phone numbers.
AI cyber security analyses network traffic to identify legitimate users and block any malicious changes scammers might want to make to an account. Although UKGC demands all licensed British casinos perform KYC verification on all customers, this only curtails some possible loopholes. Therefore, operators must use AI tech and configurations to identify vulnerabilities and strengthen defence against threats.
Secure your next spins and bets.
As long as you play at a secure and licensed casino site, you can be sure that your gambling experience will be fair and that your data is protected. Otherwise, we look forward to seeing how AI ethics will affect the future of iGaming in England and the global industry.
