Bonus Abuse Emerges as the Most Widespread Form of Online Gaming Fraud in North America
MWN-AI** Summary
Bonus abuse has emerged as the predominant form of online gaming fraud in North America, according to a recent report by LexisNexis Risk Solutions. The study, which gathered insights from 993 industry decision-makers, reveals that 78% of respondents view bonus abuse as a major threat to their businesses. Fraudsters exploit promotional incentives and seamless onboarding processes to engage in these schemes, resulting in substantial financial losses for operators.
The complexity of bonus abuse typically involves the misuse of new-account bonuses through tools like synthetic identities and multiple accounts. The report notes over 95,000 instances of fraud associated with a single abuse network, with potential financial exposure reaching around $3.2 million. The findings show that fraud is especially concentrated at the early and latter stages of the customer journey, specifically during account creation and withdrawal, contributing to an alarming 60% of total fraud exposure.
While financial losses are the most immediate concern, operators also face escalating compliance costs, customer churn, and reputational damage. Sean Britt, senior director at LexisNexis, characterizes bonus abuse as akin to first-party fraud, emphasizing its organized and repetitive nature that makes detection challenging without advanced intelligence measures.
Despite the risks, the report indicates that online gaming operators prioritize user experience, with 81% indicating that even slight onboarding friction could drive players to competitors. This has led to heightened investment in automated know-your-customer (KYC) systems and real-time fraud detection.
Furthermore, the study highlights the underutilization of data collaboration among gaming operators, with only 20% sharing fraud intelligence. Those who do report quicker detection and reduced false positives. Ultimately, successful navigation of these challenges requires a more strategic and cooperative approach to fraud prevention within the industry.
MWN-AI** Analysis
The recent report from LexisNexis Risk Solutions highlights an alarming trend in North America's online gaming sector: bonus abuse is now the most prevalent form of online gaming fraud, identified by 78% of surveyed industry professionals. This escalated fraud is largely attributed to operators' aggressive promotion strategies and the frictionless onboarding processes that have become a norm to attract and retain players.
Fraudsters are capitalizing on these systems by exploiting new-account bonuses through tactics such as synthetic identities and multiple accounts. The sheer magnitude of this issue is underscored by the detection of over 95,000 fraud events tied to a singular network, with potential financial implications reaching up to $3.2 million. Importantly, with 60% of fraud incidents occurring during crucial stages of account creation and withdrawal, operators must reassess how they balance user experience with security measures.
From a market perspective, the findings guide operators toward implementing sophisticated fraud prevention strategies without sacrificing the appeal of quick and easy onboarding processes. Investing in advanced technologies such as automated KYC (Know Your Customer) processes and real-time fraud detection tools should be paramount. While there's considerable risk from fraud, it's essential for organizations to build a culture of trust and transparency, as only 20% of operators currently collaborate and share fraud intelligence.
To remain competitive, gaming operators must adapt to these evolving threats by enhancing their defenses while continuing to provide engaging player experiences. Implementing a multi-layered intelligence approach to fraud detection can mitigate risks and ultimately strengthen brand integrity and customer loyalty. The path forward is clear: a commitment to both customer experience and robust security efforts is crucial in navigating this challenging landscape.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
PR Newswire
Fraudsters exploit promotional incentives and frictionless onboarding as gaming operators seek to balance player experience with security, according to LexisNexis Risk Solutions survey
ATLANTA, March 5, 2026 /PRNewswire/ -- LexisNexis® Risk Solutions today released the results of its first Fraud and Identity Industry Pulse: Online Gaming in North America report, an analysis of fraud trends impacting online casinos, sportsbooks and iGaming platforms across the region. The study, based on a survey of 993 online gaming industry decision makers, reveals that bonus abuse now ranks as the single most prevalent form of fraud in North America's gaming sector, cited by 78% of respondents as a top threat to their business.
Bonus abuse schemes, where fraudsters repeatedly exploit new-account bonuses using synthetic identities, stolen credentials and multiple accounts, are costing operators millions of dollars per year. Global contributory networks detected over 95,000 fraud events tied to a single abuse network, representing an exposure of up to $3.2 million.
Fraud is most concentrated at the beginning and end of the customer journey, specifically during account creation and withdrawals which accounts for roughly 60% of total fraud exposure. While direct financial losses remain the most visible consequence, operators also report rising compliance costs, customer churn and brand damage as key areas of impact.
"Bonus abuse has become the gaming industry's version of first-party fraud," said Sean Britt, senior director, global gaming markets, LexisNexis Risk Solutions. "It's organized, repeatable and difficult to detect without multi-layered intelligence. As gaming operators compete for players through incentives and faster onboarding, they must also strengthen their defenses at the point of entry."
Despite mounting threats, the report finds that North American gaming professionals remain focused on frictionless user experiences. Eighty one percent (81%) of respondents said even moderate onboarding friction can drive customers to competitors, prompting increased investment in automated KYC processes and real-time fraud detection tools.
The study also reveals that data collaboration is an underused yet powerful defense: Only one in five operators currently share fraud intelligence, though those that do report faster detection, fewer false positives and improved customer trust.
As online gaming operators continue to navigate the dual pressures of delivering seamless player experiences while combating increasingly sophisticated fraud networks, the industry's path forward will depend on smarter, more collaborative defenses. The findings from the report make clear that bonus abuse is not just a financial risk but a structural challenge that demands coordinated action, advanced intelligence and a renewed focus on trust.
Methodology: LexisNexis® Risk Solutions Fraud and Identity Industry Pulse: Online Gaming in North America study conducted a survey in collaboration with SIS Competitive Gaming of 993 decision-makers across the online gaming industry, including fraud and identity professionals responsible for customer security, ID verification and compliance. The study provides organizations with data and analysis to understand the challenges and preferred mitigation strategies of fraud and identity professionals in the region.
Download the Fraud and Identity Industry Pulse: Online Gaming in North America report.
About LexisNexis Risk Solutions
LexisNexis® Risk Solutions leverages the power of data, advanced analytics platforms and integrated AI solutions to provide insights that help businesses across multiple industries and governmental entities reduce risk and improve decisions to benefit people around the globe. Headquartered in metro Atlanta, Georgia, we have offices throughout the world and are part of RELX (LSE: REL/NSE: RELX), a global provider of information-based analytics and decision tools for professional and business customers. For more information, please visit LexisNexis Risk Solutions and RELX.
Media Contact:
Rebecca Bender
Montieth & Co
rbender@montiethco.com
SOURCE LexisNexis Risk Solutions
FAQ**
How is RELX PLC PLC American Depositary Shares RELX leveraging advanced analytics to help gaming operators protect against the rising trend of bonus abuse in the North American online gaming market?
In what ways can RELX PLC PLC American Depositary Shares RELX assist gaming operators in implementing data collaboration strategies to enhance fraud detection and reduce operational costs associated with bonus abuse?
Given the survey findings, how does RELX PLC PLC American Depositary Shares RELX plan to address the balance between maintaining frictionless user experiences and strengthening security measures against bonus abuse?
What role do RELX PLC PLC American Depositary Shares RELX's AI solutions play in helping online gaming operators combat organized fraud schemes like bonus abuse effectively, while also addressing the impacts on customer trust and brand reputation?
**MWN-AI FAQ is based on asking OpenAI questions about RELX PLC PLC American Depositary Shares (NYSE: RELX).
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