iGaming Fraud: The New Target – Malta’s Supply Chain

Fraudsters’ New Target: iGaming’s Backdoor

Malta’s iGaming sector, a €1.2 billion juggernaut, is facing a new challenge. Fraudsters, once focused on player verification, are now exploiting the industry’s backdoors. Welcome to the new face of iGaming fraud.

From KYC to ‘Know Your Customer’s Customer’

Player verification, or Know Your Customer (KYC), has long been the iGaming industry’s first line of defence. But fraudsters have evolved. They’re now targeting the industry’s supply chain, focusing on ‘Know Your Customer’s Customer’ (KYCC).

Take, for instance, the case of a local iGaming company that recently discovered fraudulent transactions originating from a seemingly legitimate player. The player, based in Paceville, had passed all KYC checks. But further investigation revealed that the funds used for gambling were stolen from another player’s account.

Fraud’s New Playing Field: The Supply Chain

This shift in tactics is not isolated. Fraudsters are now exploiting vulnerabilities in the iGaming supply chain. They’re targeting payment processors, affiliate networks, and even third-party service providers. These entities, while crucial for iGaming operations, often have less stringent security measures than the operators themselves.

For example, a payment processor based in Msida recently fell victim to a sophisticated fraud scheme. The fraudsters exploited a weakness in their system to siphon funds meant for iGaming operators. The operators, adhering to strict KYC protocols, were left bewildered.

Malta’s Response: A Collective Effort

Malta, home to over 300 licensed iGaming companies, is not sitting idle. The Malta Gaming Authority (MGA) is leading the charge, encouraging operators to adopt a collective approach to combat this new breed of fraud.

“We’re seeing a shift in fraud tactics,” says a spokesperson for the MGA. “Fraudsters are no longer just targeting players. They’re going after the industry’s supply chain. We’re working closely with operators and other stakeholders to mitigate these risks.”

Local iGaming companies are also stepping up. They’re investing in advanced fraud detection systems, enhancing their due diligence processes, and even sharing intelligence on emerging threats.

: A Call to Action

The iGaming industry is at a crossroads. The shift in fraud tactics is a wake-up call. It’s time to move beyond KYC and embrace KYCC. It’s time to strengthen the industry’s supply chain. It’s time to fight fire with fire.

“We need to stay one step ahead of the fraudsters,” says a local iGaming CEO. “That means investing in technology, sharing intelligence, and working together. Our collective future depends on it.”