The online gambling industry has seen tremendous growth in recent years, reaching an estimated market size of $66.7 billion in 2020. However, this rapid expansion has also brought along an increasing number of fraud-related risks. Among the many tactics employed by fraudsters, device farms have emerged as a significant threat, with the potential to impact the gambling landscape for operators, regulators, and players alike. This article aims to provide key insights into device farms, how they impact online gambling, and strategies to counter this threat.

Fraudulent activities in the online gambling sector can take various forms, including multiple account creation, automated betting, account takeover, and money laundering. A device farm is a collection of numerous electronic devices, often smartphones and tablets, utilized to perform automated and coordinated activities on gambling platforms, such as creating fake accounts and executing bets. These setups allow fraudsters to circumvent a platform's security measures, thereby potentially skewing the odds in their favor, impacting revenue, and damaging the platform's reputation.

To combat these malicious activities, online gambling operators must go beyond traditional authentication techniques and deploy more sophisticated measures. Meanwhile, players should also remain vigilant and understand the risks involved in using platforms affected by device farms. As part of our analysis, we will delve into five key strategies for dealing with device farm threats in the online gambling sector, exploring their benefits and drawbacks, as well as offering tactical implementation advice for each approach.

In this article, we will discuss device and browser fingerprinting, emulator and virtual machine detection, IP geolocation and impossible travel, advanced Captcha and 3D liveness tests, and Know Your Customer (KYC) and phone verification. By understanding and implementing these strategies, gambling operators can stay one step ahead of the fraudsters and create a secure environment for their platforms and users. Moreover, players can use this knowledge to make informed decisions and choose platforms that prioritize their safety.

As we delve into these strategies in the following sections, it is essential to recognize that no single solution will mitigate all risks associated with device farms. Nevertheless, implementing a combination of these measures will better position operators and players to protect themselves against fraudulent activities and ensure continuing growth and sustainability in the expanding online gambling landscape.

Strategy 1: Device and Browser Fingerprinting

What is Device and Browser Fingerprinting

Device and Browser Fingerprinting is a technique used to uniquely identify devices and browsers based on their specific configurations, settings, and attributes. This process generates a digital fingerprint, which can be used to track users or detect fraudulent activities such as device farming.

How does it work

Fingerprinting works by collecting a wide range of data points from a user's device and browser, including information about the operating system, screen resolution, browser plugins, and more. These data points are then combined to create a unique digital fingerprint, which is compared with existing records to identify patterns or anomalies indicative of fraudulent activities.

Pros & Cons

Pro: One significant benefit of device and browser fingerprinting is the efficient detection of multiple account creation, identity theft, and account takeover activities. By analyzing digital fingerprints, operators can spot patterns or anomalies that suggest the use of device farms, allowing them to take swift action to prevent potential fraud and protect their businesses.

Con: However, device and browser fingerprinting can have its limitations, as sophisticated fraudsters may employ bypassing techniques to manipulate or obfuscate their digital fingerprints. This can potentially lead to missed detections and a false sense of security for operators who rely exclusively on fingerprinting to identify fraudulent activities.

Tactical implementation

To implement device and browser fingerprinting effectively, online gambling operators can employ various fingerprinting libraries or APIs, such as FingerprintJS, to collect and process the necessary data points. These libraries typically offer robust and comprehensive fingerprinting solutions while reducing the burden on in-house development teams.

When incorporating fingerprinting into their anti-fraud strategies, operators should also monitor usage patterns and maintain a database of known digital fingerprints. This can help in detecting patterns over time, identifying high-risk user accounts, and establishing baseline metrics for normal user behavior.

Additionally, it is crucial to stay up-to-date with advancements in fingerprinting techniques and tools, as well as the latest tactics employed by fraudsters to bypass these measures. Continuously refining and updating fingerprinting practices based on new developments and threat intelligence ensures a proactive approach in combating fraudulent activities related to device farming.

Here are some specific implementation steps for incorporating device and browser fingerprinting:

1. Choose a reputable fingerprinting library or API, and integrate it into your platform.
2. Configure the fingerprinting solution to collect the necessary data points for accurate identification of devices and browsers.
3. Establish a clear strategy for comparing new digital fingerprints against your existing database, including rules for flagging or blocking suspicious accounts.
4. Implement regular audits of your fingerprinting practices to identify potential gaps or areas for improvement.
5. Share insights and findings with industry partners, regulators, and cybersecurity experts to foster collaboration and knowledge sharing around fraud prevention best practices.

Strategy 2: Emulator and Virtual Machine Detection

What is Emulator and Virtual Machine Detection

Emulator and Virtual Machine Detection is a fraud prevention technique that identifies instances where users access online gambling platforms through emulators or virtual machines. Emulators are software applications that simulate the behavior of a mobile device, while virtual machines enable the running of multiple instances of an operating system on a single computer. Detecting and blocking devices using these technologies can help reduce the risk of fraud and other malicious activities in the online gambling industry.

How does it work

This strategy involves identifying the distinct signatures of emulators and virtual machines, such as characteristic memory usage patterns or specific hardware configurations. By detecting these signatures, online gambling platforms can block devices that are using emulators or virtual machines, reducing the risk of fraudulent activities running on these devices, such as poker bots or collusion schemes.

Pros & Cons

Pros:

1. Preventing poker bots and collusion schemes: By detecting and blocking devices using emulators and virtual machines, this strategy can help prevent the operation of poker bots and the potential for collusion among players. These malicious activities can alter the fairness of the game and lead to significant revenue losses for the operators.

Cons:

1. Risk of false negatives: While this strategy can effectively detect many instances of emulators and virtual machines, sophisticated fraudsters may still be able to bypass these detection methods by employing advanced evasion techniques. As a result, there is a risk of false negatives where devices running emulators or virtual machines are not identified and blocked.

Tactical Implementation

To implement emulator and virtual machine detection as part of your fraud prevention strategy, follow these steps:

1. Integrate emulation detection tools or APIs: Utilize existing tools or APIs that offer emulation and virtual machine detection capabilities. These solutions can help identify the unique signatures associated with emulators and virtual machines automatically, without any manual intervention.

   
   

2. Maintain a blacklist of identified emulator and VM instances: When an emulator or virtual machine is detected, add its signature to a blacklist. This will help track and block any future attempts to access the platform using the same emulator or virtual machine. Regularly updating and maintaining this blacklist can help ensure that your platform remains protected against known instances of these technologies.

   
   

3. Monitor and analyze device usage patterns: Continuously monitor and analyze the device usage patterns of your users. This can help identify suspicious activity that may be indicative of an emulator or virtual machine. For example, if a player is consistently logging in from different devices with similar characteristics (hardware, software, etc.), it could suggest the use of an emulator or virtual machine.

   
   

4. Train and educate your staff: Ensure that your team responsible for managing and monitoring the online gambling platform is well-versed in the risks associated with emulator and virtual machine usage. This knowledge can help them make informed decisions when evaluating potential threats and implementing appropriate preventive measures.

   
   

By incorporating emulator and virtual machine detection into your overall fraud prevention strategy, you can effectively reduce the risk of poker bots and collusion schemes affecting the integrity and revenue of your online gambling platform.

Strategy 3: IP Geolocation and Impossible Travel

What is IP Geolocation and Impossible Travel

IP geolocation refers to the process of determining the geographic location of a device using its Internet Protocol (IP) address. On the other hand, impossible travel is a concept that focuses on identifying unusual travel patterns exhibited by users when logging into online platforms, which can be a sign of fraudulent activity, such as account takeover or duplication.

The importance of IP geolocation and impossible travel in the online gambling industry lies in their ability to address security threats like proxy betting, VPN (Virtual Private Network) usage, and account duplication, which can lead to significant revenue loss for operators.

How does it work

Determining geographic location via an IP address involves cross-referencing the IP address with an IP geolocation database, which can provide information about the country, region, city, and sometimes even the physical address of the device user.

On the other hand, detecting impossible travel patterns involves monitoring user login attempts and identifying instances where the geographic location of the device changes in an unrealistic timeframe (e.g., logging in from two different countries within minutes). This can indicate that the same account is being used by multiple parties or a sophisticated fraudster using tools or techniques to hide their real location.

Pros & cons

Pros:

1. Addressing proxy betting: By monitoring user locations with IP geolocation, operators can identify and block accounts involved in proxy betting, which can lead to revenue loss and violation of gambling regulations.
2. Discouraging VPN usage: VPNs can be used to bypass geographic restrictions and engage in fraudulent activities. Detecting VPN usage through IP analysis can help operators detect and block such attempts.
3. Tackling account duplication: Impossible travel pattern detection can help identify cases of account duplication where different users share account credentials to gain an unfair advantage.

Cons:

1. Increasing reliance on IP tracking and masking tools by fraudsters: As operators employ IP geolocation to combat fraud, sophisticated attackers are more likely to use IP tracking and masking tools like proxies, VPNs, and TOR (The Onion Router) to hide their real location and bypass these security measures.

Tactical implementation

1. Use IP lookup tools and geolocation databases: Operators can make use of IP lookup tools and comprehensive geolocation databases that are regularly updated to obtain accurate and reliable information about user locations.
2. Create rules to flag or block users with inconsistent travel patterns: By setting up rules that flag or block users exhibiting impossible travel patterns, operators can keep a check on potential fraudulent activities. These rules can be based on factors like number and frequency of logins from different locations, the time gap between logins from different locations, etc.
3. Monitor VPN and proxy connections: Operators should monitor user activity for signs of VPN or proxy usage, such as rapid IP address changes or logins from known VPN IP address ranges. When such connections are detected, operators can implement measures to prevent access or scrutinize the user's activity.
4. Educate users about potential risks: Online gambling platforms can inform their users about the potential risks associated with VPNs, proxy servers, and other techniques for IP manipulation, emphasizing the importance of adhering to platform guidelines and regulations. This can help build user trust and discourage misuse of the platform.
5. Collaborate with peers and industry stakeholders: Tackling fraud in the online gambling industry is an ongoing effort, requiring collaboration between operators, regulators, and technology solution providers. By sharing information, experiences, and best practices, stakeholders can work together to achieve a safer and more secure gambling environment.

Strategy 4: Advanced Captcha and 3D Liveness

What is Advanced Captcha and 3D Liveness

Advanced Captcha is an enhanced version of the traditional Captcha test, which aims to differentiate between legitimate human users and automated bots during the user registration and authentication process. These advanced tests may include more complex image recognition tasks, audio challenges, or interactive puzzles.

3D Liveness, on the other hand, is a biometric authentication method focused on verifying that a user is a real person and not a digital representation (e.g., a photo or video). It typically uses facial recognition technology and requires users to perform specific actions, such as blinking or smiling, to prove their presence during the authentication process.

How does it work

Online gambling platforms can integrate advanced Captcha tests during the registration and login process to prevent automated bot registrations and thwart fake profiles. These advanced tests require users to complete more challenging tasks that are difficult for bots to replicate, ensuring that only human users can access the platform.

For 3D Liveness, users are prompted to perform a specific action, such as turning their head or moving a specific facial muscle, while the system compares the live input with a stored database of known biometric data. This authentication method is designed to ensure that users are who they claim to be, reducing the chances of impersonation or identity theft.

Pros & cons

Pro: Preventing bot registrations and fake profiles

Advanced Captcha tests and 3D Liveness technology can help online gambling operators reduce the number of bot registrations significantly. By implementing these authentication methods, operators can increase the security of their platforms and make it more difficult for fraudsters to create fake profiles or use automated tools to exploit their services.

Con: Captcha fatigue or liveness test false negatives

Despite their effectiveness, advanced Captcha tests and 3D Liveness challenges may sometimes result in false negatives, accidentally rejecting legitimate users. Additionally, these security measures may cause user dissatisfaction or "Captcha fatigue," as users must repeatedly prove their humanity during registration or login. This can lead to frustration, potentially causing some genuine players to abandon the registration or login process.

Tactical implementation

To implement advanced Captcha and 3D Liveness in your online gambling platform, you can:

1. Research and choose an advanced Captcha provider that offers a variety of challenging tests to ensure that only legitimate human users can access your platform. Integrating this solution into the registration and login process can effectively deter bot registrations and fake profiles.

   
   

2. Select a 3D Liveness solution provider that supports multiple biometric authentication methods, such as facial recognition and action-based challenges. By incorporating this technology into your user authentication process, you can reduce the risk of identity theft and impersonation.

   
   

3. Continuously monitor the performance of your advanced Captcha and 3D Liveness implementations and fine-tune the tests and challenges regularly to avoid repetitive or predictable patterns. This will help ensure that these security measures remain effective in combating fraud and will mitigate any frustration or fatigue experienced by users.

   
   

4. Consider implementing additional user education and assistance mechanisms, such as support articles, tooltips, or a dedicated support team, to address any issues or confusion that users may face while interacting with these enhanced security measures. This will help maintain a positive user experience, even as you employ advanced fraud prevention techniques.

   
   

Strategy 5: Know Your Customer (KYC) and Phone Verification

What is KYC and Phone Verification

Know Your Customer (KYC) is a mandatory process followed by businesses to verify the identity of their customers. In the world of online gambling, KYC is essential in preventing fraud, money laundering, and ensuring compliance with regulatory requirements. Phone verification is a part of the KYC process, which involves validating a user's phone number to confirm their identity and reduce the risk of fraudulent activities.

How does it work

The KYC process typically starts during the user registration, where the user is required to provide personal information, including name, date of birth, address, and a valid government-issued identification document. Online gambling platforms can use specialized KYC platforms to authenticate these documents and confirm the user's identity.

Phone verification adds an extra layer of security to the KYC process. It is usually carried out by sending a one-time password (OTP) or a verification code to the user's registered phone number. The user must input the correct OTP or verification code to complete the phone verification process. By linking a verified phone number to a user's identity, operators can substantially reduce the chances of a fraudulent account being created.

Pros & cons

Pros:

• Deterring identity theft and account takeover: Implementing KYC and phone verification significantly reduces the risk of fraudsters taking over an existing user's account or registering a new account using a stolen or fake identity.
• Preventing money laundering: By verifying user identities, operators can ensure compliance with anti-money laundering regulations and avoid potential legal consequences.

Cons:

• Increased user friction in the registration process: Users may find the KYC and phone verification process time-consuming and cumbersome, potentially leading to a drop in new user registrations and conversions.

Tactical implementation

To implement KYC and phone verification effectively, operators should follow these steps:

1. Integrate KYC platforms: Partner with specialized KYC platform providers or utilize KYC APIs that offer reliable identity verification services. These platforms can help verify government-issued identification documents, extract data, and confirm user identities.

   
   

2. Implement phone verification: Integrate phone verification APIs or SMS gateway services that can send OTPs or verification codes to users' registered phone numbers. Ensure the communication between your platform and phone verification service is encrypted and secure to prevent interception by malicious actors.

   
   

3. Create a process to review, flag, or block suspicious user accounts: Establish a clear procedure to investigate and take necessary actions on user accounts that fail the KYC and phone verification process or exhibit suspicious behavior. This process may involve additional identity verification steps, such as video identity verification or document submission.

   
   

4. Inform users about KYC and phone verification requirements: Clearly communicate the importance of KYC and phone verification to users through website content, user guides, and email notifications. Inform users about the steps involved in the process and any possible delays or issues that may arise during verification.

   
   

5. Monitor and optimize: Regularly review the effectiveness of your KYC and phone verification processes, and make necessary adjustments to maintain high security and compliance standards. This may involve updating verification methods, improving the user interface, or partnering with new service providers.

   
   

Final Thoughts and Next Steps

In conclusion, the online gambling industry faces an increasingly sophisticated set of fraud tactics, including the growing use of device farms. The top 5 strategies discussed in this article - Device and Browser Fingerprinting, Emulator and Virtual Machine Detection, IP Geolocation and Impossible Travel, Advanced Captcha and 3D Liveness, and Know Your Customer (KYC) and Phone Verification - serve as essential tools for operators and players to better counter these threats and protect their platforms and investments.

As the landscape of online gambling evolves, operators must be proactive in implementing fraud prevention measures. By integrating these strategies into their security systems, operators can significantly reduce the risk posed by device farms and other advanced fraud techniques.

Moreover, it's crucial for online gamblers to be aware of the potential dangers and choose platforms that take security seriously. Players must be discerning when selecting an online gambling platform based on the fraud prevention strategies adopted by the platform, which reflects the operator's commitment to the safety and security of its users.

Lastly, the online gambling industry should consistently monitor emerging threats and adapt to new situations. This means staying up-to-date with the latest developments in cybersecurity and continually finessing fraud prevention strategies. As new fraud tactics emerge, operators and players alike must be willing to update and adapt their approaches to ensure they are doing everything possible to stay ahead of cybercriminals and protect the integrity of the online gambling experience.