How to Prevent Bonus Abuse: a Guide from Rosloto

Specialists of the Rosloto company will tell you about effective methods of combating such a crime and software that needs to be installed to protect online casinos from unreasonable expenses.

About Bonus Hunting

This is a rather common problem in the gambling field. Experts say that:

• 45% of entertainment platforms face fake accounts and reward seekers at least once a month, and 20% incur huge losses and lose profits.
• Land-based establishments (casinos and bookmakers’ offices) suffer less from fraudsters, while Internet resources are attacked regularly.

Sometimes, the term “bonus abuse” is used instead of “bonus hunting”. This is the action of gamblers, groups of players, or bots who register on the website with the intention of obtaining a benefit from offers provided by operators.

What Types of Violations Entrepreneurs Encounter

The first peak of such a phenomenon occurred in 2000–2006 and was associated with the work of land-based casinos and betting shops. The entertainment industry was just beginning to develop. Business owners received their profits and did not think much about the correct distribution of costs for attracting and retaining the audience.

Taking advantage of legal loopholes and the inattentiveness of companies, attackers created multimillion-dollar schemes for withdrawing money. Their efforts were successful thanks to high bonus odds (up to 200% per bid) and the almost complete absence of wagers.

In 2012–2013, entrepreneurs first encountered fraudsters on the Internet. Bonus hunters were already acting more carefully: they often used special software or bots.

The main methods applied by scammers:

1. Multi-accounting. A single person creates several accounts at once (seemingly unrelated to each other). Thanks to this, they gain an illegal advantage over other players, collect incentives for registration (so-called no-deposit bonuses), and disappear.
2. Use of bots. Most often, this scheme is resorted to by experienced fraudsters who are planning to steal bonuses on an especially large scale. They create many fake profiles via the special software, receive rewards, and delete accounts. Bots are also useful for money laundering through casinos.
3. Chip reset. The method is typical for such table games as video poker, baccarat, blackjack, etc. Gamblers deliberately lose tokens (cards or chips) in favour of other participants, thus affecting the results of the rounds and the distribution of bonuses.
4. Arbitration. This is the simultaneous placement of bets on the same match but with different winners. Regardless of the outcome of the meeting, the scammers still receive their reward.
5. Affiliate fraud. In this case, operators can lose money due to unscrupulous partners. They attract supposedly targeted Internet traffic to the website and receive their reward (most often, using the CPA method). New clients not only do not place bets on the resource but are not even verified.

Different forms of fraud are aimed at various types of incentives. Basically, these are gifts for registration or the first deposit, which can be quickly received without spending time and money.

Why Bonus Abuse is So Dangerous for the iGaming Industry

It is important for operators to prevent the theft of rewards for several reasons:

1. Huge financial losses. Unreasonable expenses on marketing, which includes a loyalty program, can paralyse the work of online casinos. When the lion's share of the money is spent on attracting bonus hunters, the platform’s turnover does not increase. Entrepreneurs will have nothing to pay to software vendors, hosting providers, and other contractors.
2. Fraud with personal data and settlements. Lack of control over the distribution of incentives can cause more serious problems. These include theft of client data, money laundering, system failures, and much more. Due to such violations, business owners can lose their licence and be obliged to resolve civil penalties.
3. Deterioration in image indicators. Honest users are unlikely to place bets in a casino where there are cases of bonus hunting. As a result, operators will lose real customers and earn a bad reputation in the market.

How to Protect Your Website from Fraudsters

Let us consider the most effective ways to combat the theft of rewards.

Wager Setting

Its rules depend on the type of incentive and the nature of the client’s game.

The longer a person stays on a gambling portal (ideally, from 6 months), the more loyal conditions can be offered to them. Requirements for new clients, on the contrary, should be strict. This will allow entrepreneurs to quickly filter out potential offenders and focus on those players who are really interested in the placement of bids.

The concept of wagers came to the entertainment industry from the sports betting sector. Top bookmakers suggested that players use bonus funds at least 5 times before they can withdraw prizes.

In online casinos, the popularity of the tool is only gaining momentum. At the same time, many operators have already appreciated the benefits of such an option, so they are actively implementing it into their loyalty programs.

Multifactor Personal Identification

Its main task is to filter out potential scammers at the registration stage.

Suspicious accounts can be identified thanks to:

• geolocation (checking the IP addresses of input devices);
• analysis of a gambler’s digital footprint;
• customer recognition based on biometrics (fingerprints or retinal scans);
• integration of specialised software that interacts with banking systems.

In 2024, to verify a player, it is not enough to enter their nickname and password. Identification via SMS or voice call also does not give the expected results since fraudsters use multiple mobile devices or SIM cards.

The more methods are added to the website, the higher the likelihood of detecting offenders as quickly as possible.

Security Software Integration

Such program components provide an integrated approach to solving the problem of bonus hunting, which includes:

1. Multi-factor authentication. This is a verification of identity, personal device, digital footprint on the Internet, and other parameters.
2. End-to-end analysis of expenditures for rewards. It allows project owners to track the impact of every dollar spent on the acquisition and retention of customers. The solution identifies weaknesses in the loyalty system and makes recommendations for optimising costs.
3. Development of strategies for enhanced protection. One common example is the replacement of cash bonuses with in-game tools and features. These are tournaments, quests, multi-level tasks, and much more.
4. Advance work. Security software studies and analyses the experience of competitors in the fight against fraudsters. As soon as new bonus abuse schemes appear on the Internet, the casino will be immediately prepared for them.

High-quality program components can be found in the product range of top providers.

The Main Things about Bonus Hunting in the Gambling Niche

This is a common problem in the casino and sportsbook industry.

Key features of the phenomenon:

• Entrepreneurs face multi-accounting, bots, betting arbitrage, and other types of violations. Unfair partnerships also lead to the theft of rewards and a decrease in profits.
• Bonus abuse is dangerous for several reasons. These are extensive marketing costs, deterioration of image indicators, and loss of trust on the part of honest players/B2B partners. For gross violations, operators may lose their licences or pay huge fines.
• To protect a digital platform from scammers, it is advisable to install security products. Business owners can also set stricter wagers and launch multi-factor user identification.

The Rosloto studio is a reliable supplier of high-quality gambling solutions. From us, you can order certified software, affiliate programs, and popular slots.

We also offer the following useful services:

• creation of a turnkey online casino;
• development of a White Label platform;
• assistance in obtaining a licence;
• promotion of ready-made projects, and much more.