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The Big Game: perfect target for cybercriminals?
In 2022, the BlackByte ransomware group published a 292MB file containing sensitive information from the San Francisco 49ers. Like teams, venues and vendors, bookmakers are also in danger as they handle a large volume of personal data in the run-up to major events, during the events themselves and in the aftermath.
With the Big Game coming up soon in Arizona, Sumsub, an all-in-one verification platform that secures the entire customer journey with customizable KYC, KYB, transaction monitoring and AML solutions, has outlined what to expect and how to avoid threats associated with major events.
Expected traffic increases
Last year’s Big Game registered more than 101 million viewers according to the Nielsen consultancy. American fans avidly continue to bet on major sporting events as more and more states legalize gambling following the removal of a federal ban. By the end of 2022, the online betting industry registered a growth of two billion dollars, driven by sports pools.
Based on its experience with traffic spikes at major sporting events, Sumsub expects to see a traffic increase of more than 83% at sportsbooks around the last game of the football season.
“Though major sporting events attract much-desired traffic to betting platforms, cybercriminals and scammers increase in number as well, so bookmakers need to take extra care. Manual verification is not optimal because, with the increased user traffic, onboarding time grows accordingly, so the best choice would be to find a trusted all-in-one verification provider offering an advanced automated solution for KYC, AML and anti-fraud,” said Andrew Sever, co-founder and CEO of Sumsub.
As user traffic increases and verification takes longer, it can be tempting for betting platforms to cut some expenses. This is especially true for bookmakers used to performing manual verification, which can take more than 24 hours under normal circumstances and much longer during big events. Bookmakers know that if verification takes too long, users will go to the competition. As a result, they may be willing to sacrifice verification accuracy for speed.
However, this type of compromise inevitably leads to regulatory sanctions. For example, Entain, the owner of Ladbrokes, was fined £17 million ($20.6 million)—the largest ever fine in the UK—for failing to enforce player security and anti-money laundering measures.
Surge in fraud
Fraud is increasing in the gaming sector. In Q1 2022, fraud increased 50.1% compared to Q1 2021. There was also an 85% increase in fake account registrations compared to Q4 2021. The upcoming Big Game is expected to attract even more fraudsters.
The list of fraud schemes that bookmakers experience is extensive:
- arbitrage betting
- multiple accounts
- identity theft
- account takeover
- money laundering
- affiliate fraud
Cybersecurity threats
“Big sporting events and hacking go hand in hand and the bigger the event, the more threats there are. Attackers can be individual hacker groups looking to make a quick buck or politically oriented groups wanting to steal sensitive information,” added Andrew Sever.
Cyberattacks range from hacking into match broadcasts and security cameras to stealing the personal data of athletes, organizers and spectators. More attention needs to be paid to collecting and storing user data securely, as well as increasing the overall resistance of betting platforms to hackers.
Best ways to avoid threats while enjoying high traffic?
During major sporting events, the challenge for bookmakers is to onboard users without reducing approval rates, all while remaining AML (anti-money laundering) compliant and maintaining security.
The solution is to create an automated verification flow that allows users to easily onboard and go through extra checks only where and when it really matters. Below is a list of checks bookmakers can employ at each stage of the customer journey. There are also some suggestions on how to make this flow even more agile:
Request a minimum number of checks at the time of registration. When a user registers for the first time, platforms may limit verification procedures to collecting names and checking phone numbers or email, and verifying the user’s Social Security Number (SSN). This way, the user becomes familiar with the service and is more motivated to go through the full verification procedure when he really wants to place a bet.
Deploy simplified checks when appropriate. For low-risk users, bookmakers can introduce a simplified check using a single document, as long as it contains identity and address information. This allows users to avoid uploading additional documents to verify their address, thus increasing approval rates.
Add additional checks when users make their first deposit. This could include bank card verification and facial biometric check to ensure that the true cardholder is making a deposit.
Introduce facial recognition to prevent fraud. Doing this at the onboarding stage combats multi-accounting. Adding biometric verification when users log in or recover their account ensures that fraudsters can’t hack it. And it’s often even more important to use it at the stage of withdrawal of funds, which is where more fraud tends to occur.
“Adding these checks to the flow reduces verification time and still ensures security. For example, Kaizen Gaming moved from manual verification to Sumsub’s automated solution, reduced their average onboarding time to 1 minute 39 seconds and increased its overall performance by 350%, all while eliminating fraud,” concluded Sever.
The Brazilian Volleyball Confederation (CBV) has announced a comprehensive, multi-year partnership with Sportradar Group, a leading global sports technology company, to strengthen the performance of its athletes, from grassroots to professional levels of the sport.
Starting this season, Sportradar will leverage computer vision to capture deep data from CBV matches and training sessions, on the beach and the court, to create detailed metrics and dynamic visualizations from every rally, point and match, providing teams and coaches with valuable insights that will contribute to the growth and success of Brazilian volleyball.
In collaboration with fellow CBV partner VolleyStation, Sportradar will implement several additional technology upgrades for the federation. These include a new Video Checking System at 22 training venues to improve officiating; a Brazilian Player Data Hub to track athlete development; and automated data collection and video production capabilities at the national team training center in Saquarema.
In addition, CBV will partner with Sportradar to safeguard more than 7400 annual CBV competitions from corruption and match-fixing through Sportradar’s industry-leading Universal Fraud Detection System (UFDS) and educational workshops for athletes, administrators, and referees.
“We are delighted CBV has selected Sportradar to transform sports performance for Brazilian volleyball. Through this partnership, we are equipping CBV with the deep data and insights to identify the next generation of champions, as well as ensuring the integrity of their competitions,” said Sergio Floris, Managing Director Brazil, Sportradar.
“The partnership with Sportradar yields important results, such as the implementation of the challenge system in all Superliga matches, bringing even more security and fairness to the games. In addition, the specific data of each athlete is a fundamental tool for the development of national volleyball,” said Jorge Bichara, Technical Director of CBV.
“We are pleased with our partnership with Sportradar through its portfolio of products and services to enhance CBV’s technical, operational, and commercial efficiency. This is another important step in our ongoing efforts to improve the relationship between fans and the sport. The data provided by Sportradar will enable the development of new experiences for fans and new revenue opportunities for CBV,” said Henrique Netto, CBV’s Director of Marketing and New Business.
Compliance Updates
DCP Issues Summary Suspension of High5Games License for Conducting Illegal Gaming Activity
The Department of Consumer Protection Gaming Division has issued a summary suspension of the license for Online Gaming Service Provider, High5Games.
High5Games is a licensed service provider that develops and provides online slot content for the legal gaming platforms in Connecticut. The Gaming Division’s investigation determined that High5Games also illegally operates an unlicensed online casino, High5Casino.
High5Casino was marketed by High5Games as a legal “licensed” casino and accepted wagers from Connecticut bettors, including individuals who had signed up for the statewide Voluntary Self-Exclusion List.
There are only two legal platforms licensed to accept iCasino wagers from Connecticut consumers: FanDuel and DraftKings. They are affiliated with Mohegan Sun and Foxwoods Casino, respectively.
The DCP Gaming Division investigation determined that 1100 Connecticut customers made deposits and gambled on the unlicensed High5Casino platform. Of those, 911 customers lost a total of $937,938, and 108 were individuals who had signed up for the Voluntary Self-Exclusion List. Customers on the Voluntary Self-Exclusion List lost nearly $300,000 on the platform.
High5Games, a majority owner of High5Casino, will be charged with 1065 criminal counts of conducting illegal gaming activity. Gaming Division Criminal Investigators will seek criminal charges for all of the violations of Connecticut’s gaming laws, for which each charge is a Class A misdemeanor carrying a penalty of up to one year in jail and a fine of up to $2000.
DCP will seek restitution for eligible consumers who suffered a financial loss after being misled to believe that High5Casino was a legal form of gaming in Connecticut.
“Thank you to our Gaming Division team for their hard work to hold this licensee accountable. It is a privilege to hold this license, and we expect our credential holders to take that responsibility seriously. High5Games took advantage of their credential to mislead consumers into believing they were participating in gaming on a legal platform when, in fact, they were breaking the law. We remind consumers that there are only two licensed online casinos in Connecticut — DraftKings/Foxwoods and FanDuel/Mohegan Sun — and if you choose to participate in online gaming, you should only utilize one of the legal platforms licensed to operate in our state,” said DCP Commissioner Bryan T. Cafferelli.
“We are disappointed that a licensed gaming service provider took advantage of Connecticut consumers by operating an illegal casino platform. It is difficult to recover funds for consumers from illegal platforms. We remind consumers that gambling on licensed platforms is the only way to guarantee recovered funds in the event of an issue with a game or platform,” said DCP Gaming Division Director Kris Gilman.
A new study published in JAMA Psychiatry has found that sports gambling frequency and alcohol-related problems are strongly associated over time, reinforcing concerns about the potential health risks of concurrent gambling and drinking behaviors.
The study, funded by the International Center for Responsible Gaming (ICRG), analyzed data from over 4300 U.S. adults over two years. Researchers found that while alcohol-related problems slightly decreased over time, fluctuations in sports gambling frequency were closely tied to changes in alcohol-related harms. These findings suggest that individuals who engage in both activities may be at heightened risk of developing problematic drinking behaviors.
“These results emphasize the need for screening and intervention strategies targeting sports gamblers who also drink. It is quite likely that these behaviors are interacting in such a way that may increase the risks associated with both. Given the increasing accessibility of sports gambling in the U.S., understanding the health implications of these behaviors is critical,” said lead author Dr. Joshua B. Grubbs of the University of New Mexico.
The ICRG, the largest independent funder of gambling research in the US, has supported multiple studies aimed at understanding the risks associated with sports wagering. Dr. Grubbs’ latest research builds on his extensive body of work, which has resulted in 12 peer-reviewed publications examining gambling behaviors, addiction risks, and responsible gambling strategies. Supported by ICRG funding, his studies have significantly contributed to the understanding of these critical issues.
Among prior ICRG-supported findings:
• Sports bettors are at a higher risk for addiction than other gambling groups, with a strong connection to binge drinking. (JAMA Network Open, 2024)
• Impulsivity is a key predictor of high-risk gambling behaviors, underscoring the need for targeted intervention strategies. (Addictive Behaviors, 2024)
• Responsible gambling strategies must be tailored to different types of sports betting, as not all forms carry the same level of risk. (Journal of Gambling Studies, 2024)
• Marginalized communities face unique gambling challenges, requiring culturally sensitive harm-reduction strategies. (Addictive Behaviors, 2023)
“As sports gambling continues to expand, research like this is essential for understanding the broader public health implications. ICRG remains committed to funding rigorous, independent studies that contribute to evidence-based solutions for responsible gambling,” said Art Paikowsky, President of ICRG.
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