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As eSports become more popular, time for the industry to get real about security

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Police in Ukraine recently seized 3,800 PlayStation 4 consoles, which currently retail for around 290 each, and found to their surprise that the operation wasn’t mining cryptocurrency as they assumed but was in fact being used to generate content packs for FIFA Ultimate Team, a popular game mode in the FIFA football series.

The raid and its results underline a fact that may escape more traditionally minded members of the gaming community: eSports is a major industry, and like any industry it is susceptible to fraud. The fact that the games themselves take place virtually is irrelevant to fraudsters who can use the familiar toolkit of multi-accounting, bonus abuse and affiliate fraud to earn thousands.

With many sports teams unable to play throughout much of 2020 and 2021, eSports grew massively. League Championship Series (LCS), one of the largest eSports leagues, became the third most viewed professional sports league amongst 18-34 year olds in the U.S and has retained its corporate sponsors at a time when other leagues were shut down. Success stories like these are blunted by how pervasive eSports fraud is,

So, what kinds of fraud are taking place in eSports, what is it costing eSports organizations and what can be done to stop it?

What kinds of fraud are possible in eSports?

eSports attracts very similar types of fraud to regular sports betting, including:

  • Bonus Abuse: Like other sports betting companies, eSports companies often give sign-up bonuses such as free bets to new players. By coding automated systems, a fraudster can sign up to hundreds of accounts and use the free bets to win real money. This can cost gaming companies up to 15% of their revenue.
  • Multi-accounting: Similarly, a fraudster can use multiple accounts to perform other types of fraud, such as matched betting, ‘smurfing’ or arbitrage of affiliate fraud.
  • Affiliate Fraud: Those eSports betting organizations that draw in some of their new players from affiliates are vulnerable to affiliate fraud in which an affiliate creates fake accounts to gain the pay-out.
  • Account takeover: Using lists of passwords from data breaches, keyloggers or phishing a fraudster can gain access to a player’s account and drain their funds.
  • Chargeback fraud: A player, who may be a legitimate gamer and not a professional fraudster, initiates a chargeback on a transaction. This is common in gaming when gamblers regret a bad bet and claim that their account was hacked.

The costs of eSports fraud

Fraud costs have a way of snowballing, with each $1 lost through fraud actually costing companies $3. The above techniques are hardly equivalent to the major data breaches of major banking and tech companies that cost on average $3.86 million, but the constant barrage of low-level frauds can soon drain your company’s security budget. Aside from the cost of the fraud itself, there are a number of hidden costs such as:

  • Chargeback losses: Investigating and disputing chargebacks will take up your risk team’s time, leaving them little time for more valuable activities. More worryingly, a company with a large number of chargebacks is likely to find it difficult securing credit or loans. Visa and Mastercard’s resolution processes are making things even more difficult for merchants, so you are likely to lose even more.
  • Affiliate budget waste: You could be paying for useless clicks from bot networks rather than legitimate customers, wasting your marketing budget and reducing overall ROI.
  • Reputational damage: Once word of mouth spreads about customers losing the entire bank accounts to account takeovers it will not be long until players start deserting your site.
  • Regulatory fines: The regulations around eSports are not as stringent as with other sports betting, but it will not be long before they catch up. With the industry growing it will not be long before countries put regulations in place to protect players, and without stringent security your company could be fined.

The solutions

You will notice that the majority of the types of fraud common in eSports have to do with fake accounts. These are easy for fraudsters to create using the wealth of publicly available data and leaked information, but fortunately artificial intelligence-based tools have been developed that allow companies to spot synthetic identities.

Through device fingerprinting, email profiling and IP analysis a complete picture of a new signup to your site can be created, allowing software to spot the tell-tale signs of a hastily created account. For example, it could find that an email address does not match any social accounts, or that they use VPNs and data centers to conceal their IP address.

Of course, a sophisticated fraudster could create a convincing fake identity, especially with the wealth of information available from data dumps, so modern technology can also spot the use of pre-paid credit cards or even the speed with which information is entered, which could indicate it is being filled in automatically by a script.

By combining data points from a large and ever-growing set a system can determine whether it is likely that any given new account is fraudulent. For the many cases in which it will not be fully clear whether an account is authentic or not adaptive Know Your Customer checks can be used – customers with several red flags will be given full tests to determine their identity whereas other customers will have less obtrusive tests for a smoother site experience.

eSports has gone from a niche concern to an Olympic sport in a few short years, and that success is going to attract fraud, so it is vital for the industry to pre-emptively defend against fraud by adopting the very highest levels of security.

To learn more, visit: https://seon.io/

George Miller (Gyorgy Molnar) started his career in content marketing and has started working as an Editor/Content Manager for our company in 2016. George has acquired many experiences when it comes to interviews and newsworthy content becoming Head of Content in 2017. He is responsible for the news being shared on multiple websites that are part of the European Gaming Media Network.

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DATA.BET Teams up with Pragmatic Play Sports – Partnership to deliver full esports solution

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DATA.BET, the trusted sportsbook solution supplier, has partnered with Pragmatic Play, a leading content supplier to the iGaming industry, to expand the gaming provider’s new esports betting product.

Through the collaboration, Pragmatic Play Sports can provide an esports solution that combines premium content with official data and best-in-class streaming technology.

DATA.BET will deliver its complete esports offering, giving Pragmatic Play Sports access to its odds feed and customisable Multi Widget that combines Scoreboards, Pitch Tracker, and low-latency live Video Streaming into a single interface.

Pragmatic Play Sports customers now have access to DATA.BET’s entire catalogue of 30+ esports disciplines, which includes some of the world’s most in-demand esports titles, such as Counter-Strike, Dota 2, EA Sports FC, Valorant, and League of Legends.

A broader rollout of additional disciplines is scheduled for upcoming phases through 2026. The collaboration equips Pragmatic Play Sports with reliable, premium esports content supported by strong infrastructure and seamless integration to meet the growing needs of its operators and customers.

“This is a long-term alignment where we will grow in the esports space together and deliver a strong, revenue-generating product to Pragmatic Play Sports and their clients,” said Otto Bonning, Head of Sales at DATA.BET. “We are eager to collaborate with such a forward-looking team and continue delivering tools that help drive global growth. For DATA.BET, the project reinforces its strategy of delivering modular, scalable integrations to global leading partners.”

Gareth Crook, SVP of Sports at Pragmatic Play, said: “We’re delighted to expand our new esports product in conjunction with DATA.BET. This partnership delivers a complete esports solution powered by official data, giving operators reliable pricing and extensive event and market uptime. Alongside this, Pragmatic Play provides a premium range of managed services – including trading and risk management of esports – to ensure operators have the confidence and support they need. Esports is one of the fastest-growing global betting verticals, and this launch reinforces our commitment to an official-data approach while adding a truly dynamic new product to our already extensive portfolio.”

This collaboration marks another step in DATA.BET’s roadmap for scaling esports accessibility across the betting industry.

 

The post DATA.BET Teams up with Pragmatic Play Sports – Partnership to deliver full esports solution appeared first on European Gaming Industry News.

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XSOLLA WEB SHOP AND SINGULAR JOIN FORCES TO DELIVER CROSS-PLATFORM LTV AND ROAS MEASUREMENT SOLUTIONS

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Xsolla Web Shop And Singular S2S Integration Bridges The Gap Between Mobile Marketing And Web Transactions For Complete Campaign Visibility

Xsolla, a global video game commerce company that helps developers launch, grow, and monetize their games, today announced a new mobile-focused Server-to-Server (S2S) integration with Singular, a leading marketing analytics and attribution platform. The integration unifies mobile marketing data with direct-to-consumer web purchases, enabling developers to measure campaign performance and player value more accurately than ever before.

As mobile game makers increasingly turn to Web Shops to expand revenue streams beyond app stores, one challenge has persisted: how to tie those off-platform transactions back to mobile marketing spend. The Xsolla Web Shop + Singular S2S integration closes this gap by treating Web Shop purchases as attributable events, giving developers true Return on Advertising Spend (ROAS) and comprehensive Lifetime Value (LTV) insights.

Key advantages of the Xsolla Web Shop + Singular S2S integration:

  • Capture both mobile and web purchases as part of a single funnel
  • Link revenue directly to user acquisition and re-engagement campaigns
  • Reveal the complete LTV picture across app and Web Shop transactions

With this integration, Web Shop purchases are transmitted to Singular as server-to-server events, then mapped back to the correct install source or re-engagement campaign. This provides growth teams with a single, trusted view of performance across all platforms.

“Having launched more than 600 mobile Web Shops, we’ve seen developers demand actionable data that connects web monetization with mobile marketing,” said Berkley Egenes, Chief Marketing & Growth Officer at Xsolla. “Our new S2S integration with Singular delivers that missing link, giving teams the clarity to optimize and scale their Web Shop strategies confidently.”

“Our goal at Singular has always been to simplify complex data and make it actionable for growth teams,” said Gadi Eliashiv, CEO and Co-Founder at Singular. “By partnering with Xsolla, we’re giving developers the full-funnel visibility they need to measure ROI and maximize revenue across every platform.”

Learn more about the S2S integration for Xsolla Web Shop and Singular at: xsolla.pro/singular

 

The post XSOLLA WEB SHOP AND SINGULAR JOIN FORCES TO DELIVER CROSS-PLATFORM LTV AND ROAS MEASUREMENT SOLUTIONS appeared first on European Gaming Industry News.

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eGaming Integrity Welcomes Hayley Ashton as Compliance Manager

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eGaming Integrity is proud to announce the appointment of Hayley Ashton as its new Compliance Manager, effective immediately. Hayley joins the firm in response to growing client demand for enhanced compliance support across the Isle of Man’s eGaming sector.

Hayley’s career reflects deep expertise across the regulatory and financial services sectors. She has gained extensive experience in anti-money laundering frameworks, risk assessment, and governance best practices, with a proven ability to support organisations in maintaining the highest compliance standards.

With diplomas in Anti-Money Laundering and Governance, Risk and Compliance from the International Compliance Association, alongside a BA in Primary Education with Qualified Teacher Status from Leeds Beckett University, Hayley combines technical knowledge with strong skills in training, leadership, and operational delivery.

Emma Shilling, Director at eGaming Integrity, commented: “The demand for practical, outcome-focused compliance advice continues to grow as the GSC elevates standards and the island prepares for MONEYVAL. Hayley’s appointment reflects our commitment to meeting that demand, and her experience and proactive style will ensure clients get the support they need where it matters most.”

Hayley Ashton added: “I’m passionate about fostering compliance cultures that are both effective and sustainable. Delivering practical, outcomes-focused guidance tailored to real-world business contexts is where I believe compliance adds its most valuable contribution. I’m looking forward to working closely with our clients and helping them put robust, workable compliance practices in place.”

Hayley’s appointment strengthens eGaming Integrity’s team of industry experts and former regulators, reinforcing its leadership in mock audits, remediation and internal audits for the Isle of Man’s egaming licence holders.

 

The post eGaming Integrity Welcomes Hayley Ashton as Compliance Manager appeared first on European Gaming Industry News.

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