Key Moments:
- Suspicious transactions in the iGaming sector have increased 4.5 times from early 2025 to early 2026
- The average value of flagged transactions has grown from just under $4,000 to about $6,500
- Fraudulent verification attempts comprised 1.53% of all checks in Q1 2026, up 18% year-over-year
Surge in Fraudulent Activity Challenging Operators
Fraud is swiftly becoming more costly and difficult to detect within the gambling industry, as AI-driven schemes boost both the frequency and sophistication of attacks. Recent figures from Sumsub, a provider of identity verification solutions, have shown that suspicious transaction volumes within iGaming have risen 4.5 times between early 2025 and early 2026. Alongside this surge, the average value of transactions flagged as suspicious has increased from just under $4,000 to approximately $6,500. This escalation suggests that fraudsters are increasingly focusing on higher-value accounts and payments.
Identity Verification Processes Face New Threats
The challenge extends beyond financial transactions. By the first quarter of 2026, attempts to bypass identity verification systems accounted for 1.53% of all checks – a figure that has climbed by 18% compared to the previous year. Although the percentage may appear small, it corresponds to millions of verification attempts on gambling platforms worldwide.
The use of artificial intelligence is fundamentally altering the dynamics of online fraud. Today’s attackers spend considerably more time navigating and refining their identity verification attempts, leveraging AI to fabricate documents, generate synthetic identities, and create realistic images. Data reveals that unenrolled or unauthorized individuals take four times longer than legitimate users to complete identity verification. Rather than quickly moving on, fraudsters repeatedly test various configurations of credentials, striving for success before targeting new accounts.
AI Amplifies Fraud Tactics
Artificial intelligence has become essential for many fraud groups, facilitating the creation of convincing fake documents and identities on a massive scale. As a result, attackers can submit numerous variations of fraudulent records, overwhelming automated systems and compliance teams tasked with identifying suspicious activity.
Regional Disparities Highlight Unique Risks
The report identifies significant differences in fraud rates by region. Africa currently experiences the highest incidence of fraud, while North America has the lowest. However, the lower frequencies in developed markets do not imply reduced risk; rather, the use of advanced techniques such as deepfakes and sophisticated synthetic identities makes fraud harder to detect in these environments.
In Europe, the overall level of fraud has remained steady, but the techniques employed have continued to evolve. Over the past year, Latin America has seen an increase in counterfeit proof-of-address documents used for customer identification.
Evolving Industry Standards in Security
The report points to a broader trend affecting the entire iGaming industry: the decreasing effectiveness of standard identity checks at account registration in the face of more advanced fraudulent strategies. To combat these developments, operators are moving toward layered security models that monitor customer behavior throughout the player lifecycle, rather than relying solely on initial verification.
| Region | Fraud Trend |
|---|---|
| Africa | Highest rates of fraud |
| North America | Lowest rates of fraud, but advanced methods are used |
| Europe | Stable fraud levels, evolving tactics |
| Latin America | Increase in fake proof-of-address documents |
- Author
Daniel Williams
