Synthetic Identity Fraud in Betting

Introduction

Synthetic Identity Fraud (SIF) is a burgeoning concern in the sports betting industry, where fictitious personas are created by combining real and fake data to evade Know Your Customer (KYC) checks [1]. Notably, SIF differs from traditional identity theft, as it creates a 'Frankenstein' identity with no immediate victim, thereby rendering detection more challenging.

Key Dynamics

Motivation

A critical examination of SIF reveals that the primary motivation behind this type of fraud is Bonus Abuse (Gnoming) in regulated markets. Here, fraudsters exploit 'new user' incentives across thousands of fake accounts, as evidenced by [2].

Technique

An analysis of SIF techniques indicates that fraudsters utilize Residential Proxies and Antidetect Browsers to mask device fingerprints. Furthermore, the increasing employment of GenAI to forge documents and Deepfakes to bypass biometric liveness checks underscores the evolving nature of SIF, as highlighted in [3].

Countermeasures

To counter SIF, the industry is shifting from static database checks, which SIF can easily circumvent, to Behavioral Biometrics and Consortium Data sharing. This approach enables the detection of non-human patterns and device recidivism, as discussed in [4].

Conclusion

In conclusion, SIF poses a significant threat to the sports betting industry. The detection of SIF requires a multi-faceted approach that incorporates advanced technologies, such as machine learning and artificial intelligence, and collaborative efforts among stakeholders. As the threat landscape continues to evolve, it is essential to remain vigilant and adapt countermeasures to stay ahead of fraudsters.