Fraud in iGaming: Why Europe has become a high-risk zone

The online gambling industry is experiencing an unprecedented surge in fraudulent activity. Over the past year, the volume of suspicious transactions in the iGaming sector has increased 4.5-fold, while the average value of such transactions has nearly doubled from approximately $4,000 to $6,500. These figures point not to isolated cases of abuse but to a fundamental shift in the nature of the threats facing online gambling operators.

Overall fraud levels have reached 1.53% of all user verification attempts, significantly exceeding the figures recorded over the previous two years. Compared with last year, this represents an increase of nearly 20%, while the gap compared with 2024 is even more pronounced. These findings are based on the analysis of millions of documented fraud attempts, making the results broadly representative of the industry as a whole.

The geographical distribution of fraud is uneven and is driven by two key factors: either relatively weak regulatory and technical requirements imposed on gambling operators or the strong financial attractiveness of a given market. Africa remains the most vulnerable region, with fraud rates exceeding the global average by 1.5 to 2 times. In contrast, North America reports the lowest fraud levels, reflecting the benefits of more mature regulatory frameworks and stricter compliance standards.

Europe occupies a middle position, with an overall fraud rate slightly above 1%. However, the region has become the epicenter of a far more concerning trend: nearly two-fifths of all attempts worldwide involving forged identity documents and deepfake technologies are detected in Europe. This is the highest share among all global markets and suggests that European platforms have effectively become a testing ground for increasingly sophisticated fraud techniques due to their high financial value.

This trend is driven by a combination of factors. A well-developed payments infrastructure, a large number of licensed operators, and the lack of harmonized regulatory requirements across European jurisdictions create an environment in which fraudsters can identify and exploit the weakest links in the system.

Artificial intelligence has emerged as the primary catalyst behind this surge. Fraudsters are increasingly using generative AI tools to produce counterfeit identity documents and synthetic faces, automate large-scale account creation, and execute bonus abuse and multi-accounting schemes. Activities that previously required significant time and human resources can now be scaled within minutes using AI agents, substantially increasing the complexity of fraud prevention efforts.

For iGaming platforms, these developments underscore the need to reassess core security strategies. This includes strengthening document verification procedures, implementing more sophisticated identity verification workflows, expanding information sharing on suspicious accounts between operators, and developing internal risk models that account for regional fraud patterns.

These issues are particularly relevant for jurisdictions seeking alignment with European regulatory standards or maintaining close cooperation with European partners. For markets such as Ukraine, ignoring these developments is becoming increasingly difficult. Fraud prevention capabilities are rapidly evolving into a competitive differentiator on par with licensing conditions and tax policy.

Recent trends demonstrate that combating fraud in iGaming is no longer a matter of responding to isolated incidents. The industry must now confront highly organized, technologically sophisticated fraud networks capable of undermining both the financial stability of individual operators and public trust in the regulated gambling market as a whole. Over the coming years, the ability of operators to adapt to emerging fraud techniques, particularly those powered by artificial intelligence, will determine which businesses remain competitive and which fall behind in this accelerating technological race.