Artificial intelligence makes it easier for iGaming operators to identify potential fraud and scams

Like most types of crime, fraud has been around for centuries. Counterfeiting, scams, and schemes have been around long before computers were invented, but the digital age has taken fraud to a new level of sophistication and global reach. As the iGaming industry worldwide becomes a multibillion-dollar market, fraud cases per year run into the millions, and fraud losses run into the billions. Fortunately, artificial intelligence (AI) has donned the hero’s cape to prevent this scenario.

AI computing can exponentially multiply the efforts of humans in terms of speed, accuracy, and the sheer volume of data when it comes to fraud detection technology. Some of the most advanced algorithms can recognize and interpret data that a team of analysts could not identify or process even if they had all the time in the world.

One of the crucial advantages of AI and machine learning (ML) is speed. While it is important that these systems can find and process information faster than human analysts, it is equally important that they can also learn, change and adapt much faster. ML mimics the ability of a sentient being to receive new information, make new observations and connections, and change its behavior based on what it has learned.

When it comes to the ever-changing world of digital fraud, AI systems are able to identify new trends and practices used by fraudsters long before human investigators notice those changes. This type of adaptive thinking makes response times to threats extremely fast, as machines effectively think and learn on their own to stay less than half a step behind criminals.

AI for fraud detection can identify and prevent virtually all types of fraud by recognizing details of communications and transactions that are even slightly outside the parameters at online casinos. By recognizing facets of activity that would be virtually imperceptible to the average human, this technology can flag phishing attempts, payment fraud, identity theft, synthetic theft, account takeovers and even document forgeries, sometimes immediately after they happen or before they are completed.