iGaming Fraud Costs European Sector €5 Billion Annually
Identity verification firm Sumsub has released its 2025 iGaming Fraud Research, revealing annual multibillion-euro losses in the European online gaming sector due to fraudulent activities.
LISTEN TO THIS ARTICLE:47% of compliance professionals polled by Sumsub reported losing over 10% of their revenue to fraud in the past year. Since the sector represents 40% of the regulated European gambling market, valued at €55 billion ($58 billion), the industry could be losing over €5 billion yearly.
Additionally, 15% of survey respondents revealed that they lost over 20% of their revenue to fraud in 2024.
83% of respondents agree that digital fraud in the sector intensified in 2024. 76% stated that fraud occurs post-customer onboarding, with identity fraud (65%), money laundering (65%), and bonus abuse (64%) being the most prevalent threats.
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AI-Powered Fraud on the Rise
Respondents also believe that artificial intelligence (AI) is aiding fraudsters in evading iGaming company checks through deepfake technology that generates realistic yet fake ID documents. The majority (78%) of compliance professionals reported a surge in AI-generated fakes over the past year.
Fraudsters use AI bots to commit bonus abuse by creating multiple accounts to exploit promotional offers like sign-up bonuses and free spins. This tactic is now very common in the sector.
According to Sumsub, the sector’s continued use of outdated fraud prevention methods and reliance on manual checks are making the barriers insurmountable.
The vendor noted that current methods stop only 54% of fraud attempts, with 31% of respondents dedicating over 40 hours monthly to fraud prevention.
Fraudsters are becoming smarter, better equipped, and more capable by the day, making an annual security check-up simply insufficient to dealing with existing threats. For a sector this exposed to fraud, a multi-layered strategy is the most effective defense. Security measures must be in place throughout the entire user journey, from registration to withdrawals. This includes KYC, behavioral analysis, device fingerprinting, and more.
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