How Technology Helps Keep Online Gambling Secure

Source

With the rise of the internet and web development, many industries started expanding in the cyber sphere. Many prefer the convenience of playing on online gaming platforms rather than having to physically go to a casino.

The iGaming industry is worth billions, showing how popular online gaming is. However, there are certain problems and threats exclusive to iGaming platforms. Cyber threats that target both the gamers and the platforms themselves are present more than in other industries.

To mitigate these risks, gaming platforms rely on traditional and innovative cybersecurity technology. Each of the methods for improving security can provide the industry with significant advancements in protecting user data, ensuring fair play, preventing fraud, and building trust among players.

Importance of cybersecurity in online gaming

Online gaming platforms, by default, gather and manage user data. Under many regulations, such as GDPR and CCPA, this data requires special attention and must be stored and managed carefully.

More specifically, online gaming platforms handle large amounts of personally identifiable and financial information. If a cyber attack manages to leak such sensitive data, the company will undoubtedly be eligible for a lawsuit.

Cybersecurity methods ensure that no cyber threats can lead to such catastrophic outcomes. Beyond data regulations, online gaming platforms must adhere to numerous laws that govern fair play, anti-money laundering (AML) practices, age verification, and responsible gambling.

Compliance with these regulations not only ensures the legality of operations, but it also helps build trust between the platform and users and regulators.

Online gaming platforms are attractive to bad actors because of their potential financial gains. This is one of the main reasons why, besides laws, iGaming businesses need to pay additional attention to protecting their users.

Key cybersecurity threats in iGaming

Hacking and data breaches are among the most significant threats to iGaming platforms. These include brute-force attacks, SQL injections, man-in-the-middle attacks, and ransomware. Such attacks can result in unauthorized access to financial data or be leveraged for more sophisticated schemes, including online gambling fraud.

These attacks lead to data exposure for users and businesses and can cause major problems for the platform. By leveraging cyber-attacks, hackers can obtain the financial data of the users and leverage it to make unauthorized purchases or launder money.

Weak passwords and insufficient authentication protocols can make platforms vulnerable to attacks, allowing bad actors to access accounts. Outdated content management systems or plugins, like the unpatched page that caused Epic Games' 2004 data breach, also pose risks. Additionally, hackers or insiders can exploit iGaming platforms to manipulate games or user data, undermining trust in the fairness of games like slots and poker.

Resources like SEON’s provide valuable insights into the evolving nature of these threats and how to address them effectively.

Methods for enhancing security

Many of the methods on this list can be implemented free of price. Furthermore, methods such as authentication mechanisms have been around for decades, yet it’s up to the business how well they implement them.

These methods include both innovative technology and traditional cybersecurity protocols, which in combination, can make a significant difference.

Fraud detection systems

The latest breakthroughs in artificial intelligence also led to better cybersecurity software. AI can analyze vast amounts of data in order to correctly flag transactions and users that seem suspicious.

Fraud detection systems can help iGaming platforms recognize and prevent suspicious transactions. These platforms often have vast amounts of data on international criminals and politically exposed personas, allowing for proper background checks of users.

They can also help with anti-money laundering screenings, ensuring compliance for the iGaming business. Fraud detection starts with the sign-up of a user, as the software will conduct digital footprint, IP fraud scoring, and other practices to recognize suspicious users.

Encryption technologies

The user data should be unreadable by those who aren’t supposed to access it. So, even if a breach occurs, the data will remain protected enough. Encryption technologies are used to ensure this.

Encryption protocols like DES, AES-256, and others make the data secure through cryptography. They ensure that the user data is protected both in transit and at-rest, minimizing the chances of hackers stealing it.

The website of an online casino must have an SSL/TLS protocol in order to ensure private and secure communication between the user and the server.

Authentication mechanisms

Users are vulnerable when making accounts and signing in. Implementation of proper authentication protocols is extremely important. They ensure that users' passwords can’t be accessed, and if they are, hackers still won’t be able to access the accounts.

In order to improve your authentication mechanisms, it’s important to enforce the use of strong passwords. Ensure that all passwords must consist of at least 12 characters and include a mix of lower and uppercase characters, as well as numbers and symbols.

Strong passwords ensure protection against social engineering and brute-force attacks. On the other hand, it’s essential that iGaming platforms implement multi-factor authentication methods. For example, the users will have to use biometric authentication or a one-time token sent to their phone or email.

Blockchain technology

Blockchain technology has revolutionized the finance sector, for the better or for the worse. The initial idea of decentralized finance is an important part of blockchain and cryptocurrencies.

Although blockchain allows anonymous transactions that can be conducted with malicious intent, it also provides a lot of transparency. Blockchain records all transactions publicly and allows any suspicious cases to be tracked.

Blockchain also protects users, as it often offers robust security and authentication measures for the transaction to be conducted.

Random Number Generators (RNGs)

While there are many problems that external factors can cause in an online casino, the business itself needs to ensure fairness and transparency. iGaming platforms must implement algorithms that ensure that the game outcomes are completely random.

The possibility of manipulation of certain games significantly diminishes the trust users can have in an iGaming platform. RNGs are regularly audited and certified by third-party organizations to maintain trust.

Staying compliant

AML and data regulations can also serve as frameworks that can help businesses understand which policies and security measures they should implement. Technology can help in many ways for staying compliant.

For example, there’s software that can help businesses automate audits and reports, allowing responsible individuals to send important documents to regulatory institutions on time.

Compliance regulations in iGaming often require businesses to implement know-your-customer regulations. Digital ID verification tools, facial recognition, and automated document checks help streamline the verification process. This reduces the risk of human error and ensures that the platform adheres to laws regarding user identification.

Employee education

As mentioned earlier, insider threats can cause problems just like hackers. Of course, employees who exploit their position for financial gain can suffer significant legal consequences.

However, employees can cause problems out of ignorance. For example, they can click on a phishing link and leave their business info, allowing the hackers to obtain access to the business. This can be prevented by educating employees on how to recognize and avoid phishing attempts and online scams.

Similarly, cybersecurity training like QA’s should also include knowledge of creating strong passwords. This can include understanding how to use random password generators and passkeys and what they should avoid using for their passwords.

Employees in iGaming also need to be aware of how to handle data securely and adhere to internal protocols of the company.

Innovative technology is essential for secure online gaming

Unfortunately, there are no cybersecurity methods that can prevent 100% of the threats. There’s always going to be a certain level of risk and potential weak points that could be exploited. However, this doesn’t mean that it’s not worth investing in good cybersecurity practices.

The problems that can occur from data breaches include fines, reputational blows, and even bankruptcy. Regardless of how expensive cybersecurity practices can be, the costs caused by failing to protect the users can be significantly higher.

By consulting with cybersecurity professionals and compliance experts, iGaming platform leaders will understand which of these practices will help them make the most impact on their users’ and businesses’ security.

Veljko Petrović

Veljko is an IT student who has successfully combined his passion for technology with his exceptional writing skills. As an emerging specialist in cybersecurity, he has completed several courses and has been published in notable blogs in the industry. In his free time, Veljko enjoys weightlifting, reading, and programming.

Linkedin: https://www.linkedin.com/in/veljko-petrović-699ab0201/

Website: www.writerveljko.com