Online Casino Fraud Schemes

Published on: October 10, 2007 

Now that the online casino world is expanding so rapidly there are more criminals who are trying their hand at obtaining some winnings from a casino the illegal way. Just like with regular casinos there will always be people who think that they can get away with schemes trying to get money out of developing a way to cheat the online casino games.

There are many different ways to do this and of course there is no manual on how to make money illegally. Most criminals make use of so-called ‘bots’. These bots are software programs specifically written for a specific online casino game. The bots pretends to be a casino player and is based on a theory that the writers of the software have developed concerning the odds in a specific casino game.

Most bots are well-developed variations of a well-known casino scam adapted for online casinos. The pre-programmed bots is designed to use money obtained through other illegal activities (such as stolen credit cards) and to launder this money through an online casino site. Of course the owners of the casino site will not be aware of this activity. The bots transfers winnings to a certain chosen person and other players who are part of the scheme enter (and flood) a certain casino playing room. They will have knowledge of the player’s cards and will attempt to signal this player as a fraudulent one using their knowledge of their cards based on maths.

There is another online casino scam that is used often in which a regular player in a casino receives a lot of spam email in which the scammers try to find out the login name and password of the player. With this account information the account of the victim will be used to bleed launder money in the same way as described above.

One of the most recent victims to this type of illegal activity is the online casino site. The site was attacked by criminals using a bot and has proceeded to return any lost money to the defrauded players. Estimates are that at least $3 mil is laundered in this way on an annual basis. There is little more that online casinos can do except for trying to up their online security and re-developing the software behind their casino games.

This type of criminal activity will always be around as long as there are online casino websites. This is why players should always be vigilant and they should never give out their personal login information to anyone on the Internet. Casinos are continuously spending time and money on fraud prevention to avoid scams and to prevent people from losing money whilst visiting casino websites.

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