Third Party Reports Emailage Whitepaper | Page 4

Online Gambling Survey Report 6 7 Online Gambling Survey Report of experts. CNP fraud, surprisingly, was raised as an issue by just 3% of those questioned, despite reports such as Online Payment Fraud: Emerging Threats, Segment Analysis & Market Forecasts 2018-2023 suggesting that online gambling and other online retail sectors are set to lose approximately $130bn due to digital CNP fraud between 2018 and 2023 5 . Whatever its specific nature, fraud – in all forms – is a problem for gambling operators across Europe. According to a 2017 survey of 50 gambling operators from the region and others in the Commonwealth of Independent States (CIS), some 94% of online gambling operators regularly struggle with fraud 6 . At what point during the customer journey do you identify most fraudulent transactions? 43% Withdrawal 30% Deposit 27% Registration Online gambling operators see withdrawal as the point most vulnerable to exploitation by fraudsters But where in the customer journey is fraud occurring? Our experts gave mixed responses: 27% said at registration, 43 % at withdrawal, and 30% at deposit. Generally speaking, the area of the customer journey with the highest amount of bonus abuse is at registration, with fraudsters creating a number of new accounts in order to play using multiple bonuses simultaneously. For CNP fraud, as well as for ID theft and account takeover, the most vulnerable stage is the deposit phase, where a fraudster will attempt to use stolen or compromised data to add money to an account under their control. If more fraud is detected and stopped at registration, it would mean significantly less fraud at subsequent customer journey points (such as at the payment or withdrawal stages) and could significantly reduce the volume of fraud of all kinds. Overall, in order to fight fraud, operators must start thinking about a multi-layered strategy to prevent all forms of fraud at multiple points of the customer journey. At Emailage, we strive to stop bonus abuse and other forms of fraud from the very first point of contact which, for many of our operators, is the registration stage. 5https://www.chainstoreage.com/technology/juniper-card-not-present-fraud-to-skyrocket/ 6https://www.intergameonline.com/igaming/news/i-gaming-struggles-with-fraud-says-survey