Technological Innovations and Their Impact on Casino Security

The gambling industry is experiencing a boom, but as entertainment platforms grow and become more capitalised, the likelihood of fraudulent activity also increases. Timely protection of websites, financial channels, and customer data becomes a top priority for any operator.

Experts of the Online Casino Market studio will tell you about the latest technical innovations and methods of protecting iGaming portals.

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Security in the Niche

The entertainment field is more exposed to the risks of fraud than other sectors of the economy. Digital resources suffer from:

• hacking;
• theft of confidential information;
• technical failures, and other difficulties.

A study conducted by the SecurityScorecard Internet portal shows that online gambling ranked third in the likelihood of cyber intrusions. It was second only to the energy and financial services industries.

Security Magazine reported that the number of targeted attacks on the gambling niche has increased by 167%. Criminals are becoming more creative in their actions. They use malware, cross-site scripting, decoys, and other ways to steal sensitive data.

Patrick Pocalyko, editor of Security Magazine, noted:

A security issue that the sector is facing can be explained by the lack of legal requirements in key markets.

In many countries, mandatory AML scanning is only applied to transfers over €2,000. All other payments undergo a standard verification procedure, which increases the risk of fraud and abuse.

The iGaming sector's flawed regulatory policy and high profitability make it an attractive target for hackers.

The number of cyber attacks on the casino industry is growing exponentially. That is why security was named a priority at the Global Gaming Expo (G2E) international conference in Las Vegas. Technological innovation plays an important role in the realisation of this task.

Protection of iGaming Transactions Via Blockchain

The unprecedented increase in Bitcoin's cost over the past decade became the reason for the popularity of distributed ledger technology. Users and operators are paying more attention to a decentralised system that allows them to send payments all over the world without the intermediaries’ assistance.

According to Global Gaming Expo, players place an average of $3 million in cryptocurrency bets per day. In some countries, the activity of customers is higher. In others, the audience is just getting acquainted with the pluses of this type of settlement.

Blockchain is becoming a convenient means of payment and an effective security mechanism. That is why more and more investors choose iGaming projects that support transactions in digital assets.

The world’s leading economies and prestigious regulators have a positive view of technology and its role in business development. Even the US government, a well-known bureaucratic giant, is taking steps towards legalising cryptocurrency.

The digital dollar will have a major impact on many industries, including manufacturing, oil, finance, the service sector, and gambling.

Let us consider how blockchain increases the security of the casino niche.

Decentralisation

To make important decisions, verify transactions, and provide internal protection, the technology uses distributed networks (DLT). It is even theoretically impossible to affect the system’s operation from the outside.

Blockchain transfers are not controlled by:

• government;
• financial organisations;
• gambling regulators, or other parties.

Decentralisation is the basis of blockchain security. It can ward off any hacker attack. iGaming deposits made using digital assets cannot be stolen at the time of transfer or while stored on the platform.

Data Confidentiality

This is another important advantage of using cryptocurrency. The system does not ask for the player's name or physical address. It is only necessary for them to indicate the number of the digital wallet to which the funds will be sent.

Bitcoin addresses consist of random letters and symbols. This means that the recipient’s data is reliably protected from hacking, theft, and unauthorised use by third parties. Fraudsters cannot disclose this information and use it for their needs.

Smart Contracts

Thanks to these agreements, entrepreneurs can safely make payments to gamblers and B2B partners, such as:

• software vendors;
• hosting providers;
• affiliates.

The casino portal writes the person concerned (a client or counterparty) into a smart contract when they transfer money for the first time. After that, the customer gets access to a portfolio of entertainment, and the business partner receives a crypto payment for their services.

A smart contract cannot be cancelled. This protects iGaming projects from fraudulent transactions and illegal withdrawal schemes.

Immutability

It ensures transparency and reliability of transfers in online casinos. Users can monitor their payments and check whether the funds have reached the recipient.

Encryption and Protection of Information

Many blockchain casinos establish additional protocols to protect customer data against theft and disclosure.

SSL (Secure Socket Layer) encryption makes sure that the connection between gamblers’ devices and online casino servers is safe. Thanks to such a mechanism, personal information (login credentials or financial details) remains encrypted and is not accessible to unauthorised persons.

Artificial Intelligence

In 2023, the American Gaming Association (AGA) declared AI to be one of the main engines for rapid market growth and an increase in the industry’s profit. The technology improves user experience, helps operators create a balanced catalogue of solutions, attract new clients, and struggle against fraudsters and cybercriminals.

Artificial intelligence imitates human behaviour to perform a wide variety of tasks. AI uses algorithms, mathematical models, and data sets to “learn” and “make decisions” based on the collected and processed information.

Security Magazine Published the Following Statistics:

81.6%

81.6% of digital marketers believe that future advertising campaigns will be based only on AI

77%

77% of devices used in enterprises (from smartphones to servers and large computer hardware) are equipped with some form of AI

50%

50% of consumers are optimistic about artificial intelligence

35%

35% of licensed companies have already introduced the technology in their work

it is expected that by 2030, the contribution of this technology to the global economy will reach $15.7 trillion

In gambling, more and more entrepreneurs are using AI to perform various tasks. Online casino security remains a priority.

Scientists from Stanford University Provide Some Interesting Data:

90%

the effectiveness of the response to the threat of cyber-attacks increases by 90% if operators use AI

75%

75% of iGaming companies plan to start using the tool by 2030

60%

60% of players trust entertainment resources more if they know about the existence of security measures supported by artificial intelligence

30%

the number of complaints about the operation of platforms with slot machines decreased by 30% after the introduction of AI mechanisms

Identification of Fraudsters

Machine learning technology can analyse game patterns, transactions, and communication with other users. Based on the processed information, the AI program notices atypical behaviour on the website, which usually means that these are attackers.

Key features of the program:

1. Pattern recognition. Artificial intelligence instantly identifies anomalies in the gamblers’ actions. For example, a user could be playing quickly at high limits, thoughtlessly folding cards in video poker, conducting private transactions on a minimal amount, etc.
2. Geographical analysis. This involves scanning the client's location and comparing it with the IP address of the PC used. If the login device is different from the usual one or is situated in some atypical place for this gambler, then additional verification is required.
3. Device fingerprinting. AI can determine how often casino visitors switch between gadgets or use a VPN. Such actions are a common sign of fraud.
4. Behaviour analysis. In addition to transaction patterns, the technology evaluates the actions of customers on a particular website. The program tracks what video slots were launched and how much time was spent on different pages (from the entertainment catalogue to the registration form and FAQ section).

The collected data allows operators to qualitatively group the audience by various clusters. To segments with suspicious activity, additional security measures are applied: freezing of funds or account blocking. As for honest users, they are, on the contrary, offered personalised services and an individual approach.

Risk Management of Payments

A machine learning system can analyse thousands of variables to detect fraudsters. AI can identify suspicious transactions, compare them with similar transfers from the past, and study the digital footprint of each specific player. All of this increases the effectiveness of fighting law offenders in real time.

The key advantage of using AI in risk management is the ability of online casinos to instantly respond to potential threats and minimise potential losses.

The advantages of artificial intelligence mechanisms:

• increase in the speed and efficiency of user transaction scanning;
• prevention of the financing of terrorism and money laundering in accordance with the international policies of FATF and AML;
• reduction of the number of chargebacks;
• assistance in working within the legal framework.

Protection Against Cyber Attacks

The key feature of AI is the ability to self-learn and adopt the experience of other companies in the fight against offenders. If operators have already encountered a new type of fraud or hacker attack, then in the future, their gambling platforms will be ready for any unauthorised intervention.

Main tasks of the program:

• monitoring and analysis of Internet traffic;
• study of intrusions over the past period;
• struggle against “false alarms”;
• cyberinfrastructure updating;
• threat forecasting;
• system verification and identification of vulnerabilities;
• development of cyber defence strategies.

The use of AI algorithms increases the efficiency of the fight against targeted phishing, data theft in online casinos, fakes in social engineering, the introduction of malware, etc.

The Main Thing about Technological Innovations in Gambling

Advanced IT solutions are the key to the reliable protection and prosperity of entertainment platforms.

What business owners need to remember when thinking about the security of their digital resources:

• iGaming is more exposed to the risk of fraud than other sectors of the economy. Entrepreneurs face cyber attacks, account takeover, personal information theft, and other threats.
• Blockchain is used to protect online casino transactions. Distributed ledger technology is characterised by decentralisation, immutability, and complete confidentiality.
• Artificial intelligence automates the operators’ routine tasks and takes the security of their websites to the next level. AI helps to quickly identify fraudsters, conduct thorough assessments of risks related to payments, and protect the gambling portal against external interference.

From the Online Casino Market studio, you can order a turnkey project implementation, a licensed White Label platform, and other profitable solutions.

We also offer the following useful services:

• development of HTML5 slots based on individual sketches;
• payment software installation;
• promotion of iGaming projects, and much more.

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