Five main uses of AI in gambling are known to us. These are the most common and have the greatest impact on the company's profits or app monetization. Anti-fraud service can also be used to combat fraud, money laundering, and fake accounts.
AI is a popular trend that allows for customization of app interfaces to meet user-specific needs. Based on the player's interaction history and similar gamers, a customized set of games is presented to him. An operator can increase his profits by personalizing advertisements and offering special deals. Personalization is one of Netflix's pillars. Personalization of special offers can be achieved primarily through the integration and use of specialized marketing tools.
There are AI-based gamebots that can implement the simplest logic to test applications. The bots that are actually intended to be used in the game may not be able to distinguish themselves from humans and can make mistakes. This practice is often controversial, particularly in games that involve a lot of interaction. Sometimes bots can be used to commit criminal acts.
AI is not yet widely used to evaluate or prevent gambling addiction. Kindred is the only operator that has shown these first results.
Is traditional fraud prevention no longer sufficient?
Two main types of cybercrimes are money laundering via gambling and fraud. First, victims of fraud suffer. The operators also suffer indirect damage as the consequences can be huge for their brand reputation. Companies provide compensations to users to cover financial losses and interact with law enforcement agencies. Gambling operators are at greatest risk of losing the trust of the public. Because of the high level of competition, players won't trust companies that have data leaked, or where their finances and accounts are at risk. Frequent fraud cases in the most financially attractive and saturated markets (Europe, USA) can have a significant impact on the business of the operator.
The Federal Trade Commission (FTC) reported that fraud complaints incurred $117 million in losses during the first half 2020. However, overall losses for 2019 were $134 million. It is often associated with account hacking, card transactions, and player self-exclusion fraud in the United States and Europe. However, fraud using bots is common in Africa.
The consequences of money laundering through gambling platforms if operators don't counter it can be severe, from casino closure to criminal prosecution. New AML Directives in the US and EU are strict. It is important to track suspicious transactions and identify them.
For example, traditional fraud prevention methods work with players who have been victim to an in-game scam. This method is not used in developed markets as it doesn't reduce the risk of brand reputation damage, decertification and criminal prosecution. Gaming operators have adopted an automated monitoring system for suspicious activity provided by all software developers. They also integrate third-party solutions when there is no antifraud.
AI ethics is one of the biggest challenges. It can be used to evaluate human behavior and initiate actions against users. This includes blocking or limiting functionality, as well as bots' integration into games with real people. Even though bots may not win money, this is an important challenge.
AI is being used to combat cyber fraud
The key technology challenge of today is to identify fraud detection metrics and goals, and how they should be updated. While money laundering and fraud schemes are not likely to change, there is always new technology (to create fake accounts, for illegal hacking).
Multiple accounts protected
It is possible to trace an account creation (from one location) from one IP address and log ins from that IP. Location tracking can also be used to prevent cooperative play. This is where multiple people interact online in the same room and coordinate their actions.
The best technical solutions are available:
In principle, banning multiple logins from the same ip
Interdiction of multiple accounts being played from the same IP at one table or in a tournament in a specific game
Automatic monitoring of registrations and patterns in-game, which detects suspicious multi-accounts. (ip, matching, or similar user data. Then in the game – patterns of behavior, such as certain patterns of betting, playing at specific intervals, etc. This is to protect against bots.
Transfers and withdrawals can be controlled
- Transfer of funds between players and prevention of abuse
Limitations on transfer (frequency and maximum amount)
Confirmation of transfer
Transfer restrictions for new players, etc.
Automatic recognition of "chips dumping", in the game. It is simply a transfer between accounts in the guise a game.
- Control over funds withdrawals:
Establishing custom withdrawal limits or requiring confirmation to withdraw specific limits.
Only players who have gone through the verification process (manual, or automated) can deposit and withdraw money.
Cash-out limitations help to prevent money laundering.
Suspected account activity may result in restrictions on money withdrawals
Hacking can cause account security
- Protect your account from hackers and withdraw illegal funds:
Server security solutions: 2FA Installation, brute force Protection, and other common methods to crack passwords (almost everyone has it).
You can protect yourself against withdrawal by using the control options (see previous item).
- Automated player security, accounts protection against hacking and control over data leakage.
Hackers are a common problem in online casinos: brute force can be used to hack most passwords and phishing can be used for casinos and sports betting brands. The safety of online gamers is dependent on their caution. An operator can still secure the system with 2FA implementation, account verification when entering from an uncommon location (e.g., the player plays from Poland but the login was created from Peru), secure channel to exchange data between clients and servers, a payment method and a client, and a payment program and a host.