iGaming Fraud: The New Target – The Back Office

Fraudsters’ New Target: The Back Office

Malta’s iGaming industry, a €1.2 billion powerhouse, is facing a new challenge. Fraudsters, once fixated on player accounts, are now setting their sights on the back office. Why? Because that’s where the real money is.

From Players to Providers

Traditionally, iGaming fraud focused on manipulating player accounts. But with enhanced security measures, fraudsters are finding it harder to exploit players. So, they’re turning their attention to the businesses themselves. It’s a shift that’s left many operators scrambling to adapt.

Take, for instance, the case of a local operator based in the Msida Industrial Estate. They recently discovered fraudulent transactions totalling €50,000, all originating from their own back office. The culprit? An insider with access to their systems.

Why the Back Office?

Back office systems handle large sums of money, making them an attractive target. Plus, they often have less stringent security measures than player-facing platforms. Fraudsters can exploit vulnerabilities to manipulate transactions, siphon funds, or even create fake accounts.

Dr. Marc Santon, a cybersecurity expert at the University of Malta, explains, “Back office systems are often seen as internal, trusted environments. But that trust can be exploited. It’s like leaving your front door unlocked because you think your family is safe inside.”

Malta’s Response

The Malta Gaming Authority (MGA) is taking note. They’re working on guidelines to strengthen back office security, with a focus on access controls and transaction monitoring. Industry bodies like the Malta iGaming Association are also stepping up, hosting workshops and seminars to raise awareness.

Locally-based iGaming giant, Kindred Group, has already started implementing these changes. Their Malta-based CTO, Craig Upton, says, “We’re enhancing our back office security, reviewing access rights, and investing in advanced transaction monitoring tools.”