The reason was that merchants misused promotions.
The company Ravelin, which specializes in detecting fraudulent actions, presented to the public a new Digital Goods Merchant Report 2022 in which the specialists of this company conducted a survey of more than 1,700 specialists from around the world about fraudulent actions.
Approximately 71% of online gambling merchants suffered significant financial losses because of promotional abuse in 2021. Due to the fast-growing and widespread fraud schemes, 62% of the respondents have experienced at least one type of fraud, and a significant increase in new types of fraud schemes is getting out of hand.
Different platforms use all sorts of rewards for clients, such as promotions, no deposit bonuses, free spins, and discounts of different kinds to keep regular customers or attract new users. In view of this, the scammers use it for their own selfish purposes, creating a myriad of accounts at different IP addresses. Accordingly, gambling companies spend millions of dollars down the drain.
Due to such fraudulent schemes, companies are more and more eager to improve their security. Over 90% of respondents said they are increasing their anti-fraud budgets, and 85% of respondents are hiring more qualified specialists to implement more effective strategies to detect fraudsters.
We`ve reported that more than 50% of сonsumers were victims of fraud on the web: survey.