Growing problem
When we talk about how to prevent fraud in B2B sports betting, we first think about preventing match fixing.
That the results of football matches can be manipulated is not a secret or news to anyone.
But lately in Brazil this theme has become recurrent in recent months.
Only in the last month of April, at least 6 games of the series A of the Brazilian championship were identified as partially fraudulent influencing results.
From there, the discussion on fraud in sports betting in Brazil and in the rest of the world was discussed.
During the pandemic and post-pandemic years, the problem worsened significantly, coinciding with the growth of people’s interest in betting in Brazil and, as the market so far remains unregulated, it ends up creating a very attractive situation for manipulators to take advantage of. these markets and act unconcerned with any type of sanction.
This ended up creating an endemic situation in Brazil.
According to Tiago Horta Barbosa, auditor of the Anti-Doping Court of Sports Justice in Brazil, a recent report by a company that monitors matches worldwide indicated that last year (2022) Brazil had 152 cases of matches suspected of being manipulated ( ranking second with 92 cases, a country in the context of war).
That is, 60 cases less than Brazil, thus winning the title of world champions of match fixing.
“A title that nobody wants,” he says.
What is B2B sports betting fraud?
There are many types of fraud in the world of sports betting, although charlatans are always changing their tactics – I mean, it’s not just related to match results as many people think.
Sports betting fraud can be one of them.
Let’s look at some types:
Multi-Account Cheat: This is one of the most used and where many attacks on the game are built. Quacks create hundreds of accounts using fake credentials to tip the scales in their favor online. For example, they can use it for bonus abuse: where countless fake accounts benefit from new sign-up bonuses, coupons and other offers. Can be used for Gnoming: where multiple accounts are used to help just one player win. Another type of fraud is payments attacks. Online casinos and gaming platforms are essentially digital wallets, so payment processing also carries the potential for loss.
Stolen credit cards: Fraudsters can use stolen card information to top up your account, which means using illegitimate money to pocket real profits.
Chargeback – This occurs after scammers top up your account. They then request a chargeback from their bank or credit card service provider, which means they get their money back at the expense of the online gambling provider.
It is also considered fraud when a person forges his identity, impersonating another, fraud related to payments, money laundering, etc.
How to prevent B2B sports betting fraud?
The Provisional Measure launched by the Federal Government presents questions that aim to curb fraud through money laundering.
One of them is that the companies that own sports betting platforms are headquartered in Brazil, as today most are located abroad.
To improve and facilitate inspection, collection and communication with agents operating in the sector, when everything is regulated, betting companies that want to operate in the country will be required to have their headquarters in Brazil.
This would avoid tax evasion and bring more funds to the Government’s coffers, but will it avoid fraud and the most opportunistic manipulation of results?
The best prevention, according to expert and auditor Tiago Horta, is education when it comes to sports.
“Athletes are one of the points of greatest attention, since many fraud problems are perpetrated by athletes on the field. That is why an initial orientation work is necessary so that the athlete does not get involved with this issue and, obviously, from the moment they are caught collaborating with this type of practice, they must be identified and sanctioned exemplarily by the sports authorities to curb future recurrences. .”
Best practices to prevent B2B sports betting fraud
To prevent B2B sports betting fraud, experts speak of “educating” in the first place.
As Tiago Horta himself explains in an article, “a system of integrity in sports betting is independent of the regulation of betting and lotteries and must be built in parallel with the regulatory issue through prevention programs, education in all areas and carrying out a strong work in the part of investigation and punishment of fraud.”
In other words, in Brazil, it would not be enough just to investigate, penalize and/or punish fraudulent activities, but to create an education system that prevents it from happening.
Less people willing to accept this type of criminal behavior, better society, better industry, better outcome.
