TL;DR:

• The iGaming industry's rapid growth has created a major security risk: account takeover (ATO) fraud.
• Why is it a problem? ATO causes huge financial losses (over $1 billion annually), damages the business's reputation, and harms player trust.
• iGaming platforms must use a combination of strategies to make accounts much harder to compromise and streamline the player experience.

The iGaming industry is booming, with millions worldwide enjoying online activities. However, this growth has created major security challenges, particularly for user accounts. The digital nature of online gaming makes it a target for threats that put player accounts and money at risk.

Account takeover fraud can seriously harm iGaming businesses, damaging their reputation, causing financial losses, and frustrating players. Here's a simplified look at this threat and how to protect your players' accounts.

Understanding Account Takeover (ATO)

First, let's clearly define account takeover (often called ATO). What is it, and how does it happen?

Account takeover occurs when an unauthorized person gains control of someone else's account. In iGaming, this means a criminal gets a player's login details, like their username and password. Once they have control, they can steal or manipulate in-game items, trade valuable assets, or sell the compromised account to another party.

The people behind ATO are diverse, from professional cybercriminals to others looking for quick money. They use many methods, often involving automated tools, to compromise accounts.

What are the most common methods attackers use to take over accounts?

• Phishing: Tricking users into giving up their login information through fake emails or messages (smishing).

• Brute-Force Attacks: Using automated software to rapidly guess account passwords until the right one is found.

• Dark Web Purchases: Buying stolen login credentials from illegal online marketplaces.

Key signs of an account takeover attack

You can spot account takeover attacks by actively monitoring player activity. Here are some key indicators:

Behavioral clues

• Unusual Purchases: Sudden, large-scale purchases, especially for items the user doesn't usually buy.

• Abnormal In-Game Activity: Strange patterns, like extremely fast leveling up, gaining too many items quickly, or unusual trading.

• Friend Requests: A sudden increase in requests, especially from unknown accounts.

Technical clues

• Suspicious IP Addresses: Logins from odd regions or locations linked to known computer botnets.

• Unusual Device Logins: Access attempts from devices with unfamiliar settings or configurations.

• API Abuse: Unauthorized or excessive use of the platform's API, potentially indicating automated attack tools.

• Unusual Data Access: Accessing sensitive account data in ways that don't match the player's normal behavior.

Account activity clues

• Password Resets: Frequent password changes, particularly over a short time.

• Account Recovery Attempts: Multiple tries to regain access using security questions or other verification methods.

• Account Sharing: Evidence of multiple logins from different places at the same time.

The high cost of account takeover in iGaming

iGaming account takeovers are a major threat to everyone involved—players, payment processors, and the platforms themselves.

The financial damage from unauthorized access is huge. Estimates suggest iGaming companies lose over $1 billion yearly to account takeover fraud. This includes direct costs like refunds, recovery fees, penalties, and lost revenue.

Beyond the money, the failure to secure user accounts can lead to:

• Reputational damage: Fraud severely harms user trust. When accounts are compromised, players lose confidence in the platform's security.

• Regulatory and legal issues: Platforms face the risk of government fines, legal action, and increased public scrutiny.

• Reduced engagement: Loss of trust leads to fewer players, negative reviews, and a harder time attracting new customers.

Prevention and detection strategies

To fight account takeover effectively, iGaming platforms need a strong, multi-layered strategy that combines smart technology with player education.

• Educate Users: Teaching players how to spot and avoid social engineering scams (like phishing) and encouraging them to use strong security practices is critical to preventing account takeovers.

• Continuous Security Measures: Conduct regular system audits and tests to find and fix vulnerabilities. Establish clear plans for how to respond quickly to ATO attacks to minimize damage.

• Biometric Verification: Systems using biometric identity verification and authentication offer very strong protection. They make it incredibly difficult for criminals to mimic a player's credentials, significantly reducing the risk of fraud and account takeover.

By using advanced security, like biometric identity verification, operators can make it much harder for criminals to breach player accounts. This not only boosts security but also speeds up the onboarding and login process, providing players with a faster, smoother, and more satisfying gaming experience.

Ready to secure your platform?

Don't wait for the next account takeover attempt to hit your business. See the power of our advanced security solution firsthand. Try our Liveness Detecion API and discover how IT can protect your players, boost engagement, and secure your bottom line against ATO fraud.