As the iGaming industry grapples with the rising tide of cybercrime, estimated to cost a staggering $10.5 trillion by 2025, Sift Science steps up as the vanguard of digital defense. The gambling sector, a prime target for digital thieves, finds a powerful ally in Sift Science’s advanced AI-powered solutions. Their participation in the cybersecurity crusade is not just about damage control; it’s a proactive stance to ensure revenue growth remains unhampered by the looming shadow of online fraud.
Cybersecurity is an escalating concern across various industries, particularly the gambling sector which is increasingly vulnerable to sophisticated criminal attacks. Brittany Allen, Trust and Safety Architect at Sift Science, outlines the unique threats facing the industry and the cutting-edge AI technology being deployed to combat them.
North American gambling titans, MGM Resorts and Caesars Entertainment, have recently faced substantial cyberattacks. MGM Resorts endured a significant revenue loss after being forced to halt operations due to a system compromise. Intruders, linked to the notorious ALPHV and Scattered Spider groups, accessed sensitive customer information. Close on its heels, Caesars Entertainment experienced a loyalty program breach, resulting in a substantial ransom payout.
Adding to the concerns, online casino Stake.com suffered a massive loss with $41m in cryptocurrencies stolen by the North Korean-affiliated Lazarus Group—a group responsible for over $200m in thefts this year. With such threats escalating, the 2023 World Economic Forum’s Global Risks Report has emphasized cybersecurity as a top global risk.
The gambling industry’s digital transition has unfortunately coincided with a surge in fraud, with Sift Science reporting significant increases in digital fraud rates across igaming and gambling from 2019 to 2021. The rapid onboarding of players and high transaction volumes create fertile ground for fraudulent activities, exacerbated by inconsistent international regulatory landscapes and the difficulty of distinguishing between high-value customers and fraudulent activities.
Sift Science, renowned for fortifying the gambling sector against fraud, harnesses machine learning to monitor over one trillion events annually across its extensive data network. This allows for the swift detection of new fraudulent patterns and the reinforcement of network-wide security measures.
With consumer trust at stake—78% would abandon a brand after an account takeover—effective fraud prevention is not just a security measure but a growth strategy. Sift Science boasts a technology that can elevate accepted player transactions to 99% and reduce manual reviews by up to 60%, demonstrating that investing in advanced fraud prevention systems is a strategic imperative for sustaining growth in the ever-evolving iGaming landscape.