Home / Blogs / Guarding Your Wins: Understanding Fraud in Real Money Online Gaming

Guarding Your Wins: Understanding Fraud in Real Money Online Gaming

Table of Contents

Real money online gaming has become increasingly popular in recent years as many people play games online and potentially win some real cash. Unfortunately, this popularity has also led to a rise in frauds and scams targeting players and gaming sites alike. This article explores the different types of fraud in real money online gaming.

Bonus abuse

Bonus abuse is a type of fraud that involves players exploiting the bonus system offered by online gaming sites. There are several types of bonuses offered viz., referral bonus (when a user refers to another user), welcome bonus (new users signing up to the platform). The abuse of bonuses also happens in various ways. 

One of the most prominent ways is Multiple Accounts abuse. For example, a player might create multiple accounts to claim multiple welcome bonuses, or they might use bots or other automated tools to cheat the system and earn more bonuses than they are entitled to. In this case, they dump the bonus amount into a single account through games and withdraw it. 

For every case of bonus abuse, approximately 2 corresponding users and 3 games are found where the bonus amounts get dumped to a single user.

Bonus abuse is strictly forbidden by online gaming sites, as it misrepresents the company’s financial structure. In case the player is implicated in such activities, it can result in the player’s account being closed and any amount in the wallet confiscated.


Collusion is a type of fraud where two or more players work together to cheat the system. For example, in the case of a Texas Hold’em poker game, Players might communicate with one another to share information about their cards or manipulate the outcome of a game. This manoeuvre affects other players in the same game since the colluders have an upper hand due to shared information between them. This process is difficult to detect, but online gaming sites take measures to detect such behaviour patterns.

Collusion cases are generally very hard to detect since it involves checking the pattern of gameplays that a user indulges in. For every case at least 5 games with traces of collusion between two users must be present.

Money Laundering

As stakes are involved, fraudsters can use these platforms to conceal illegal gains and make profits out of them. It is crucial to assess money laundering risks to prevent financial crime, track suspicious transactions, and ensure the winning amount is transferred to verified accounts only. Often these fraudsters launder money as a means of saving taxes since taxes imposed on winnings from a game are very different from taxes levied on income.


Chargebacks occur when a player disputes a transaction with their bank or credit card company, claiming that they did not authorise the charge or that the product or service was not as described. While chargebacks can be a legitimate way to protect consumers from fraud, they can also be abused by players who attempt to get their money back after losing a game or making a deposit.

Phishing scams

Phishing scams are one of the most common types of fraud in real money online gaming. They involve scammers creating fake websites or emails that mimic legitimate gaming sites, and then tricking users into entering their personal information or login credentials. Once the scammer has this information, they might use it for accessing the victim’s account and steal their money. Although this does not have any direct effect on the gaming site itself, it creates negative publicity resulting in high attrition of users on the platform.

The above mentioned problems create financial as well as operational problems for the gaming sites if the users responsible are not confronted soon.

Vindiata has been working on building an automated program which will detect cases such as bonus abuse, multiple accounts, and collusion and notify the concerned team from the company who can then take necessary actions like blocking the user accounts which are involved or any other suitable measure. Our Solution has already been deployed and in service for quite some time while still being under constant development with new information coming to light about other types of frauds. The Solution is called “Gameshield”. Let’s discuss this product in the next article along with how the fraud cases get detected.

In conclusion, real money online gaming offers a fun and exciting way to enjoy your favourite games and potentially win some cash. However, it is essential for players and gaming companies alike to be aware of the different types of fraud that exist and to take steps to protect themselves from them. By staying vigilant and following best practices for online security, you can enjoy your gaming experience with peace of mind. Also, gaming sites must be aware of activities by their users on their platform and take requisite actions.

Share on Social Media
Team Vindiata

Team Vindiata

We help you make data-driven decisions to gain Financial Accuracy, Fraud Protection, High Customer Retention and Improved Operational Efficiency

Subscribe to Our Newsletter
Stay updated with our latest news and promotions

Related Posts