Canada’s Gambling Industry Faces Alarming Surge in Digital Fraud Attempts
The Canadian gambling sector has seen a massive 79.3% increase in suspected digital fraud attempts in the first half of 2024, according to a new report from TransUnion. This surge has made online gambling the most targeted industry in the country, raising concerns over the security of digital transactions.
Gambling Industry Leads Fraud Rates in Canada
According to the TransUnion report, Canada’s gambling sector experienced the highest rate of suspected fraud across all industries, with 9.6% of transactions flagged as suspicious.
This far outpaced other sectors such as retail (9.2%) and government services (7.7%).
While global trends showed a decrease in fraud attempts in the gambling industry, Canada defied this pattern, seeing a dramatic increase.
This rise is linked to the booming online gambling market, particularly after the legalization of iGaming in Ontario in 2022.
The growth of online sports betting and poker platforms has made the industry a prime target for fraudsters, resulting in nearly double the national average fraud rate of 5.74%.
Types of Fraud Affecting the Gambling Sector
Fraud attempts in the gambling industry typically involve scam/authorized fraud, account takeovers, and synthetic identity fraud.
Scam/authorized fraud, where fraudsters trick users into giving them access, is the most common type, cited by 31% of businesses.
Account takeovers, where criminals gain unauthorized access to user accounts, accounted for 19% of reported fraud cases.
These forms of fraud not only damage the trust between players and operators but also lead to significant financial losses.
Across all sectors, Canadian businesses reported losing approximately 6% of their revenue due to fraud, an estimated $78 billion in 2023.
Gambling operators are particularly vulnerable, given the reliance on secure digital platforms to maintain player confidence.
Urgent Calls for Stronger Fraud Prevention
In response to the alarming rise in fraud attempts, experts are urging Canadian gambling operators to strengthen their security measures.
Patrick Boudreau, Head of Identity Management and Fraud Solutions at TransUnion Canada, highlighted the importance of advanced fraud prevention tools, stating:
“Protecting customers and their businesses from fraud is essential to enabling safe and tailored consumer experiences.”
He advocated for the use of identity verification, IP intelligence, and device reputation monitoring to combat the increasing threat.