Group-IB: Russian Bookmakers Lose About 2 Billion Rubles Annually to Online Fraud
According to analysts at Group-IB, Russian bookmakers suffer annual losses of around 2 billion rubles due to online fraud. Researchers report that dishonest players actively use betting bots, anonymization tools, and multi-accounting to win bets while bypassing bookmaker rules. The Group-IB Fraud Protection system detects the use of fraudulent tools and schemes in hundreds of thousands of sports betting sessions. On average, an unscrupulous player can “earn” about 300,000 rubles per month.
Key Fraud Schemes in Online Betting
In a new analytical study, Group-IB experts thoroughly examined the main fraudulent schemes in online betting. They note that the “high season” for fraudsters coincides with the sports calendar, peaking from September to late May, when major events like national football championships, European cups, and other popular tournaments take place.
“After gambling was banned in Russia, online sports betting via smartphones and computers attracted not only players but also fraudsters, who have created a vast, sophisticated fraud industry. Their earnings reach millions of rubles, and, importantly, professional cheaters are not deterred by passport verification, bans on multiple registrations, or restrictions on automated betting,” the experts explain.
To win, fraudsters use special technical solutions that can automatically select and place bets at several bookmakers simultaneously. The traces of dishonest play are carefully concealed.
Most Common Fraud Techniques
- Illegally obtaining bonuses (bonus hunting) and cashback
- “Corridors” (bets where one or two wagers on a single event are guaranteed to win)
- “Arbitrage” or “sure bets” (placing bets on opposite outcomes of the same event)
- Fraud in affiliate programs
- And more
For example, a single fraudulent account, with an “investment” of no more than 10,000 rubles, can bring its owners about 50,000 rubles in 2-3 months. By managing 5-10 accounts across different bookmaker platforms, a scammer can “earn” around 300,000 rubles per month. According to company statistics, bots and anonymization tools are used on at least 2% of devices at popular bookmakers.
Scale of the Problem
Based on information from legal Russian bookmakers about their 2021 revenue (197.9 billion rubles) and data from the Group-IB Fraud Protection system, experts estimated the total losses of legal bookmakers from online fraud in 2021 at 2 billion rubles.
Tools and Methods Used by Fraudsters
The report states that to gather analytics on bets, dishonest players actively use scanner websites. These resources find “arbitrage situations,” where a set of bets on mutually exclusive outcomes gives an almost 100% chance of winning, and help place “sure bets,” “corridors,” and win money through bonuses. Modern scanner sites offer profitability calculators, automation features, and anonymous redirects that hide transitions from scanners to bookmaker sites from anti-fraud systems.
Anti-detect browsers also help fraudsters hide their activity. These browsers create unique “fingerprints” for each browser profile, replacing the user’s original digital footprint with an artificially generated one, automating proxy server connections and changing geolocation. After creating a generated fingerprint, the solution “warms up” the fingerprint by automatically collecting cookies from popular sites.
Another way to deceive security services is by using other people’s “negative” accounts with a large number of losses. On underground specialized forums, the price of such a “warmed-up” account can reach 100,000 rubles or more.
Advanced Fraud Solutions
The most advanced solutions in the shadow online betting industry are modern betting bots, which combine arbitrage scanners, anonymization technologies, and automation of actions on bookmaker sites. To start the process, a player only needs to specify a few parameters, such as the types of bets, sports, and bookmakers of interest. Modern intelligent bots disguise themselves as real users, for example, by staying in one section for a long time, moving the cursor, or clicking buttons to fool standard protection systems.
“The online betting industry, with its billion-ruble turnover and millions of daily user sessions, has become a very attractive target for criminals using dozens of fraudulent schemes and technical solutions for illegal winnings,” notes Zafar Astanov, Head of the Competence and Project Support Department for Anti-Fraud at Group-IB. “To successfully detect, block, or better yet, prevent malicious activity, classic anti-fraud solutions are no longer enough. More advanced protection tools are needed.”