The recent decision by the Supreme Court of the United States to overturn the law against sports gambling is a game changer.
For the first time since 1992 it will be possible to place bets on the success of the great American sporting giants, as well as the hundreds of minnows, throughout the basketball, football, baseball, hockey and soccer leagues.
The opportunity this presents to established gambling operators worldwide is enormous, while an entirely new industry is certain to emerge in the U.S. In my conversations with UK operators over the past weeks, virtually all have said that addressing the U.S. customer base is now top of the agenda as the scramble for market-share begins.
But for Fraud Directors and their teams, this is going to present a whole new headache. Hidden amongst the millions of new U.S. customers that operators want to reach are fraudsters â€“ a LOT of fraudsters.
Fraudsters go for â€œlow-hanging fruitâ€� â€“ where committing fraud is easy, and on a big scale. The vast new American customer-base is going to be a prime target, and as gambling operators relax security measures to increase customer conversion, sharks are going to slip through the net. New account bonus abuse is going to sky-rocket and operators are going to be left facing huge losses unless they get this right.
So how do operators prevent a fraud feeding frenzy, while also keeping customer-onboarding free of friction?
The answer: Insight into your customerâ€™s true identity before they even open an account with you.
Wouldnâ€™t it be great if you could see all the typical signs of a fraudster, before they start to commit fraud? How powerful would it be to leverage the fraud-hunting power of hundreds of U.S. organizations, instead of just your own?
How is this possible? Well, at ThreatMetrix we advocate for an anonymized data-sharing model that does precisely that by crowd-sourcing intelligence from across industries and geographies.
The ThreatMetrix Digital Identity Network can recognize the characteristics of over 1.4 billion internet users globally. Every ThreatMetrix customer, including the worldâ€™s biggest banks, telcos and retailers, feeds the Network with tokenized customer data.
In the U.S., the ThreatMetrix Network has a customer-recognition rate of over 95%. That means if a gambling operator is using ThreatMetrix to analyse new U.S. consumers, there is more than a 95% chance that we recognize the customer and can help the operator make the right onboarding decision.
By using ThreatMetrix, UK and European gambling operators will be able to rapidly expand in the U.S. without having to profile customers as â€œbrand-newâ€� â€“ ThreatMetrix knows them already.
Benefits to gambling operators in adopting an approach that leverages global digital identity intelligence include:
- Recognizing legitimate customers immediately â€“ even if it is the very first time they are hitting your site or app
- Detecting stolen identities that are being used to create false accounts, hack into existing accounts or make fraudulent payments
- Protecting against new account bonus abuse
- Blocking collusive play by detecting accounts from the same device or IP address
- Complying with legislation by spotting suspicious activity that could be connected to money laundering or an individual that is subject to financial sanctions
- Detecting fraudulent payments where the identity attributes do not match those usually seen with that card
America has known a few gold rushes throughout its history, and the liberalizing of the sports gambling laws has started another one. With ThreatMetrix, operators will be hitting the ground sprinting.
Learn how a leading gambling company uses ThreatMetrix to differentiate between fair gamblers and unwanted fraudsters in this case study.
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