Tamas Kadar, founder of fraud prevention firm SEON, explains how the company’s tools can help operators save tens of thousands in unnecessary bonuses – by separating out first-time punters from those gaming the system.
You might have heard the old saying: “Half the money I spend on advertising is wasted; the trouble is, I don’t know which half.” This is also true of gaming bonuses.
As operators create promos to attract new customers, they often find the strategy backfires, for a few reasons.
Old users want to enjoy the bonuses, so they create fresh accounts.
Fraudsters abuse the promos in order to cash out, or resell their accounts.
A WINNING STRATEGY (ON PAPER)
The fact is that bonuses do work. According to the PPRI research firm, 92 percent of US consumers used a discount code for a purchase in 2017. Online coupon usage among 18-35 year-olds rose to 48 percent, a significant demographic to target. Discount codes and promos are particularly important for online gambling and iGaming sites. With a global market expected to reach 81.73 billion by the end of 2024, the pressure to convert customers is high and the reward for those who win is significant.
WHERE BONUS MONEY IS WASTED
At SEON, we partnered with a major gambling operator to examine a marketing campaign that was believed to be extremely successful.
What we actually found was that 20 percent of the new registrations had been created by previously active users. We calculated this cost up to E50K in wasted bonus value.
As predicted, these users just signed up with a new email and fake information to get hold of the rewards. While not strictly fraudsters, they were certainly abusing the operator’s generosity.
FRAUD PREVENTION TO FLAG FAKE USERS
At SEON, we strive to help online businesses reduce the costs, time, and challenges faced due to fraud. We provide an API based solution that classifies good and bad users in real time and causes no friction in the customer journey.
This is a perfect tool for high risk operators to mitigate risk from multi-accounting, identity theft, payment fraud and bot attacks. In short, we can help you attract new VIP customers while flagging fake accounts.
And there’s more, as SEON helps you:
- Detect fraudulent affiliates: you can then increase spend for good sources and mitigate bad ones.
- Stop payment fraud and chargebacks before they can happen.
- Detect betting arbitrage and other kind of gnoming.
- Dispute refunded transactions and uncover cases of friendly fraud.
- Secure customer customers account by detecting account takeovers.
SORTING GOOD AND BAD PLAYERS WITH SEON
Our platform provides a complete picture of your users. It starts with your own data points, which are enriched in real time by our module.
- IP address: Proxy detection such as VPN, TOR or any advanced spoofing.
- E-mail address: does it exist, creation date, is it disposable? But we also search if it was involved in a data breach, and if it was registered on 14 social media sites. The more “good history” an email address has, the less likely it is to be used for fraud.
- Device Fingerprint: we collect all the accessible data from the browser and device to calculate risk and detect shared devices.
- Machine Learning: SEON creates new rule suggestions which cover the fraud patterns automatically and create no false positives.
- Password hashes: users often make very human mistakes when creating multiple accounts, for instance, by sharing similar passwords so they are easy to remember. Using password hashes, SEON can identify and connect them, without actually receiving that sensitive data from you.
And best of all: you can access all these tools in a stunning, intuitive, and user-friendly dashboard that presents the info clearly and efficiently.
With SEON, it’s easy for anyone to create white and blacklists, custom rules and filters, and to harness the power of collaboration, reporting, and analytics.
FULL FRAUD FIGHTING FLEXIBILITY
Finally, if you are a gambling or iGaming operator who has already integrated a fraud detection system, we can still help improve your results. Our system is designed to work as a full end-to-end solution, or alongside others, so you have the option to use only the data you miss from your existing solution.
INTERESTED IN TRYING SEON?
We offer a free trial and integration so you can see how quickly and efficiently our system can bring value to your business today.