The online gambling industry is absolutely massive and highly profitable. That being said, it has a dark side, as online gambling chargebacks can quickly eat into merchants’ revenue. In addition, online gambling fraud is rampant and is one reason many decide not to enter the industry.
In this article, we will explain the struggles of online gaming fraud and present to you why we believe we are a great partner in online casino chargebacks.
- Online gambling is one of the fastest-growing markets in e-commerce
- The most common types of online gambling fraud are: gnoming, bonus abuse, and chip dumping
- Chargebacks are rampant in the online gambling industry
- The gambling industry is snowballing and is predicted to surpass $172.2 billion by 2030
- By partnering with CB-ALERT, you can significantly reduce your chargebacks related to online casinos/gambling
- There was an 85% increase in fake account registrations in 2022 compared to in 2021
Feeling Lucky? Double Down Against Chargebacks And Apply Today
Are you looking to bet the house against your online casino chargebacks? Then, you’ve come to the right place. At CB-ALERT, we will manage your chargebacks, analyze them, and set you up with anti-fraud tools and chargeback prevention alerts so that you can fight fraud in real-time.
Below you will find what you need to apply with CB-ALERT today:
- Company name
- Registered business address
- Merchant account descriptor
- Merchant account number issued by your payment processor
- Access to your sales system to provide refunds/resolve alerts for you
The more information you can provide us, the faster we can get you set up so that you can fight chargebacks.
Most Common Forms Of Online Gambling Fraud
Below are the three most common forms of online gambling fraud. Each one has its own specific challenges and needs to be dealt with to stamp out fraud.
The process of creating multiple accounts to drive up bet limitations. Fake accounts are created to drive up the max bet and influence the outcome.
When a customer creates multiple accounts and purposely loses to one of their other accounts, chip dumping is an extremely hard-to-deal-with problem for many online casino merchants.
Fraudsters often create fake accounts to reap the benefits of welcome bonuses offered by the casino. These funds will be withdrawn, and they will abandon the accounts, resulting in an account closure.
What Are Online Gambling Chargebacks
Online gambling chargebacks are when a dispute is filed directly with a customer’s bank rather than the merchant.
How To Prevent Online Gambling Chargebacks
If you want to succeed in the online gaming industry, you must control your chargebacks and implement anti-fraud measures.
For the gambling industry, we recommend a few additional levels of protection as opposed to other industries.
All online gambling merchants should implement the following to halt their chargebacks:
- Use robust fraud prevention tools: Implementing tools such as 3DS2 authentication, RDR, and chargeback alerts.
- Use a merchant descriptor: You are making your company more recognizable on a statement by using an accurate merchant descriptor. If your company name is “Gamblemania,” your descriptor should read close to this.
- Partner with CB-ALERT: At CB-ALERT, we specialize in helping online gaming stamp out fraudsters before it even begins.
- Customer Authentication: Customer authentication goes a long way when fighting chargebacks.
- Provide excellent customer service: Respond promptly to customer inquiries and resolve issues promptly and satisfactorily. This can help to prevent chargebacks due to customer dissatisfaction.
- Issue a refund: In almost every case, a refund will cost you less than a chargeback. Refunds also give you a better chance of bringing the customer back.
- Verify Funds: Ask gamblers to verify their funds before having access to gamble.
- Keep accurate records: Maintain detailed records of all transactions, including customer contact information, order details, and any communication with the customer. This can be helpful in the event of a chargeback dispute. Having proof of any customer purchases can strengthen your case in the dispute.
- Monitor and address chargebacks: Use chargeback alert systems to monitor for chargebacks and address them promptly. This can help to prevent chargebacks from becoming a more significant problem.
- IP verification: If you notice an order come in from another country that you typically don’t see or if the amount is far more significant than usual, look into it to ensure it’s accurate.
Why Do Online Gambling Chargebacks Occur?
There are many reasons for online gambling fraud. Below is a quick list of the most common reasons:
- Credit fraud: Many stolen credit cards are used to open up online gambling accounts
- Chargeback fraud: When gamblers lose, they may call their bank and file a dispute against the transaction
- Lousy customer service: When companies need to be more responsive in their customer service, they run the risk of chargebacks. 24/7 customer service is a must in the gambling industry as customers could be out thousands of dollars and become irritable.
The Effects Of Fraud On Online Gambling
All fraud significantly reduces profits for online casinos and destroys the reputation of merchants. High levels of chargebacks also lead to the termination of merchant accounts/freezes.
Why Choose CB-ALERT To Throttle Your Chargebacks?
Online gambling chargebacks can be highly harmful to your bottom line as a business. The travel business differs from others with disputes as it can be more challenging to determine a fraudster from someone with a legitimate complaint.
With over two decades of experience in high-risk verticals such as travel, we can help grow your business and be a vital piece of the puzzle. Below are some of the things we bring at CB-ALERT:
- Alerts in real-time Ethoca and Verifi
- 24/7 customer service
- Transparent pricing
- Gateway/CRM agnostic
Online Gambling Fraud Can Be Limited
Online gambling merchants are at a greater risk of chargebacks as technology evolves. While chargebacks in this industry can become daunting, partnering with CB-ALERT can help you fight up to 90 percent of fraud.
We can help grow your business to the next level and save you money/time on chargeback fees.