The global iGaming fraud landscape is entering a more dangerous phase as artificial intelligence-powered attacks, synthetic identities and deepfake-enabled scams drive a sharp increase in fraudulent activities across online gambling platforms.
New findings from identity verification firm Sumsub’s iGaming Fraud Report 2026 show that suspicious transaction volumes increased by 4.6 times year-on-year, while the average value of suspicious transactions climbed to more than €6,000. The report highlights a rapidly evolving fraud ecosystem in which criminals are increasingly using AI tools to scale operations, bypass verification systems and target higher-value opportunities.
The latest data suggest that iGaming fraud is no longer dominated by basic fake documents or simple bonus abuse schemes. Instead, operators are facing increasingly sophisticated fraud networks capable of producing synthetic identities, forged documents, deepfakes and coordinated multi-account attacks at scale. The findings underscore growing concerns about online gambling fraud and the ability of existing security systems to keep pace with AI-powered fraud.
iGaming fraud rate continues to rise globally
According to the report, the overall iGaming fraud rate increased from 1.10 per cent in 2024 to 1.30 per cent in 2025 before reaching 1.53 per cent during the first quarter of 2026. That represents an annual increase of almost 18 per cent and signals growing pressure on gambling operators’ fraud prevention systems.
While the percentage may appear relatively small, it translates into millions of fraudulent verification attempts across the global online gambling sector. The report’s findings are based on three years of analysis covering millions of identity verification attempts and more than 3 million fraud attempts observed across iGaming verifications.
Industry experts warn that iGaming fraud is becoming increasingly difficult to identify because many fraudulent applications no longer contain obvious warning signs. Instead, criminals are combining multiple techniques, including AI-enhanced documents, deepfakes, liveness bypass attempts, behavioural masking and account farming operations.
Suspicious transaction volumes surge across the iGaming sector
One of the report’s most significant findings is the deterioration in transaction risk across the iGaming sector. Researchers found that the rate of suspicious transactions has more than quadrupled over the past year, while the average size of suspicious transactions increased by approximately 64 per cent during the same period.
The combination of higher transaction volumes and larger transaction values substantially increases financial exposure for operators. The average suspicious transaction is now worth more than €6,000, nearly double previous levels.
The data indicate that fraudsters are becoming increasingly focused on larger and potentially more profitable targets rather than relying solely on high-volume, low-value attacks. For operators, rising suspicious transaction volumes represent one of the clearest warning signs that iGaming fraud is becoming more organised and financially damaging.
AI-powered fraud is transforming the threat landscape
Artificial intelligence is increasingly central to modern iGaming fraud operations. The report describes an industry-wide influx of AI-generated and AI-assisted fraud content, including synthetic faces, edited documents, templated identities and mass-generated applications. Even when individual submissions are low quality, their sheer volume can overwhelm verification systems, fraud detection teams and compliance departments.
Experts say AI-powered fraud has dramatically lowered the barriers to entry for fraudsters by making advanced fraud techniques cheaper, faster and more accessible. Tasks that previously required specialist knowledge can now be completed using commercially available AI tools.
In Europe, researchers identified growing use of AI-generated identity documents, utility bills and synthetic identities. Fraud teams are also seeing increased evidence of AI-driven multi-accounting, deepfake fraud and sophisticated identity verification fraud schemes.
The report warns that AI-powered fraud is likely to become even more prevalent during the remainder of 2026 and into 2027 as fraudsters continue adopting generative AI technologies faster than many operators can adapt. As a result, iGaming fraud is expected to become more sophisticated, scalable and difficult to detect.
Fraudsters are taking longer to bypass verification
Another notable trend is the amount of time fraudsters spend attempting to defeat identity verification controls. The report found that fraudulent users now take 4.6 times longer to complete verification processes than legitimate users, compared with 2.3 times longer just five quarters earlier. Researchers believe this reflects a growing reliance on preparation-intensive fraud techniques such as deepfakes, forged documents, synthetic identities and coordinated identity attacks.
Rather than relying exclusively on automated attacks, many fraudsters are taking a more deliberate approach, repeatedly refining submissions and adjusting tactics in an effort to evade fraud detection systems. This evolution suggests that modern iGaming fraud increasingly relies on patience, persistence and advanced technology rather than simple automated attacks.
Regional fraud trends reveal changing risks
Fraud rates continue to vary significantly across global markets. Africa recorded the highest fraud rate at 2.54 per cent during the first quarter of 2026. APAC followed with a fraud rate of 1.92 per cent, while Europe and Latin America both recorded 1.14 per cent. North America reported the lowest fraud rate at 0.44 per cent.
Regulators across Asia and Europe have launched efforts to combat gambling fraud. In June, Chinese President Xi Jinping called on Myanmar to strengthen efforts against online gambling, telecom fraud and other cross-border crimes. Meanwhile, French gambling operators are tightening their terms and conditions as they face what the country’s games mediator describes as a sharp rise in identified player fraud. The European Gaming and Betting Association has also warned about growing online fraud risks.
However, lower fraud rates do not necessarily indicate lower risk. The report notes that fraud in mature markets such as North America is often significantly more sophisticated, with a greater concentration of deepfakes, synthetic identities and highly targeted attacks. Europe, meanwhile, continues to face substantial challenges linked to forged identity documents, identity verification fraud and increasingly advanced AI-powered fraud tactics. In Latin America, fake proof-of-address documents have emerged as a major concern, while APAC remains heavily affected by selfie fraud and deepfake-enabled verification attacks.
The findings underline a broader shift in fraud prevention strategy across the online gambling industry. Traditional single-layer verification checks are increasingly being outpaced by AI-powered fraud tactics and organised fraud networks. Industry experts argue that operators must adopt a more comprehensive approach that combines identity verification, transaction monitoring, behavioural analysis, device intelligence and fraud network detection.
Stay ahead with the stories driving global iGaming. Select SiGMA World as your source preference for exclusive voices, betting trends, prediction markets and key regulatory updates.
