Increase In The Fraud Cases Across The Virtual Gambling Industry Forces ConnectPay To Secure Payment Security

Published: 26/05/2020

Reading Time: 4 Min

Image: Shutterstock

With the continuing COVID-19 pandemic over the world, there is a surge in malicious practices across the online gambling industry. Hackers and other cyber-criminals are exploring ways to exploit the vulnerability of the situation. This can be reflected by the increase in the exploitation schemes and financial frauds.

ConnectPay is one of the online banking service providers. It boosts businesses, particularly the ones that are at a high risk to ensure the security of the payment transactions as their topmost priority. It is done in order to build trust with current and new clients and further secure them from becoming victims of fraud payments.

How Gambling Industry Can Deal with Illegal Practices?

Even before the pandemic, illegal practices concerning monetary transactions have been a significant challenge for the virtual gambling industry. It has been observed that financial crime has predicted to be around 1.2 trillion dollars per year. And now the COVID 19 crisis has brought new problems as fraud activities begin to plague several markets.

As many countries are affected by the crisis, there is an increase in the chances of illegal activities in online gambling. Thus, online gambling sectors need to take strict actions for the vendors in order to safeguard their customers during the lockdown.

Liutauras Varanavičius is the head of business development at ConnectPay. According to him, the rise in the online gambling sessions corresponds with the substantial jump in the payment transactions. The data from January along with the statistics from April has recorded a 30% rise in gambling-related transactions.

Although it’s quite difficult to predict how long the impact of COVID 19 pandemic will sustain in the online gambling industry. So the requirement of taking more precautionary measures to protect secure payments should not be left unaddressed.

The growth in online gambling practices has highly increased exposure to digital threats. On the other hand, some are taking advantage of the crisis. Businesses are most likely to experience difficulty in how to stay away from the people who are carrying illegal or harmful acts and how to remain reliable and retain their targeted customers.

Liutauras Varanavičius also added that a rise in fraudulent financial practices could affect the sectors worse than any other sector. Moreover, such practices are already under observation due to the nature of its revenue. Therefore, any company with financial fraud can be leveraged as an excuse to cancel acquired licenses as well as restrict businesses.

Strategies To Overcome Risks

During the pandemic, as global health crises continue, the requirement for preventing illegal financial flows along with reliable security measures will also continue to evolve. Hence, proper implementation of adequate and timely safeguards in order to oppose the rising risks are preeminent. The gambling industry will rely on digital vendors until brick and mortar casinos become operational.

The ongoing pandemic has already thwart AML supervision and confirmed new risks that could promote criminals in avoiding customer due diligence. Nevertheless, acknowledging existing obstacles could allow businesses to evaluate actions that would assist to avoid being mixed with illegal practices and in turn select partnerships wisely.

In order to keep hackers in control, ConnectPay seems to continuously invest in new solutions against such frauds. Smart and latest AML tools are thus guiding companies that are in underserved markets to ensure reliability and keep the connected threats to a minimum.

Moreover, the company places more attention on a thorough screening approach. It will safeguard customers that are involved in illegal business activities and turn reducing the grounds for financial fraud. This year, ConnectPay addresses to invest more 750,000 euros in Counter-Financing of Terrorism and Anti-money Laundering compliance solutions.