Bonus Abuse Fraud: How to Spot the Red Flags Before It’s Too Late

What is Bonus Abuse Fraud?

Bonus abuse fraud occurs when fraudsters engage in deceptive practices to exploit promotions offered by organizations, such as e-commerce or online gambling companies. This illicit user activity involves the creation of numerous accounts (multi-accounts) using various identities, stolen personal information, or prepaid credit cards.

Subsequently, these fraudulent accounts are used to claim bonuses, and the fraudsters swiftly withdraw the funds before the operator can detect their deceitful actions with ID verification.

There are various types of bonus abuse fraud, such as:

• Money laundering: Fraudsters exploit multiple accounts to illegally gain bonuses and then obscure the source of these funds, making them appear legitimate.
• Collusion: On gaming platforms, collusion occurs when multiple individuals work together to manipulate the system and claim bonuses. This can involve coordinated efforts to rig games or take advantage of promotions.
• Account takeover: fraudsters gain unauthorized access to an existing user’s online gaming account to exploit bonuses for their own gain.
• Arbitrage: It is the practice of placing multiple bets with all possible outcomes on different sports betting platforms to enhance the chances of winning.
• Chipdumping: When a poker player deliberately loses their chips to make another player win and influence the outcome of a hand.

How Does Bonus Abuse Fraud Work?

Bonus abuse fraud works by exploiting promotional offers, such as welcome bonuses, referral rewards, or free bets, through dishonest tactics like creating multiple fake accounts (multi-accounting), using VPNs to spoof location, or manipulating wagering requirements.

Bad actors may use bots or stolen identities to scale this across many accounts, claiming rewards meant for legitimate users without engaging with the platform as intended. The goal is to extract maximum value from promotions with minimal or no risk, often cashing out quickly and repeating the cycle across different platforms or campaigns.

How Can Bonus Abuse Cost iGaming Companies Money?

Bonus abuse can cost iGaming companies money in several ways, including:

• Lost revenue: When a fraudster claims a bonus and withdraws the money without fulfilling the wagering requirements, the iGaming company incurs a financial loss.
• Chargebacks: If a fraudster uses a stolen credit card to claim a bonus, the credit card issuer may charge the iGaming company for the transaction.
• Damaged reputation: If an iGaming company is known to be susceptible to bonus abuse, it may damage its reputation and deter new customers from engaging in play.

Common Tactics Used By Bonus Abusers

Here are some of the common methods used by bonus abusers:

1. Creating Multiple Accounts (Multi-Accounting or Gnoming)

This is by far the most prevalent tactic. Fraudsters register multiple accounts using different identities, sometimes real (stolen), sometimes fake (synthetic), or even a combination of both. They may:

• Use public Wi-Fi, emulators, or browser isolation tools to avoid IP/device linking.
• Recycle contact details with small changes (e.g., johndoe1@example.com, johndoe2@example.com).
• Exploit referral programs by self-referring and claiming new-user bonuses across each identity.

Some even recruit friends and family members to create “clean” accounts, or purchase aged accounts to make the activity appear more legitimate.

2. Using Stolen Credit Cards

Fraudsters often use compromised credit card details to fund fake accounts and take advantage of deposit bonuses. This method is particularly dangerous for operators:

• Once the real cardholder notices and files a chargeback, the platform loses the funds and incurs processing penalties.
• Meanwhile, the bonus abuser may have already withdrawn any gains made using the fraudulent deposit.

This tactic is often combined with quick cash-out strategies or fake gameplay that meets minimum withdrawal conditions.

3. Leveraging Prepaid Credit Cards and Gift Cards

Prepaid cards offer anonymity. Fraudsters use them to:

• Register accounts without tying their real identities to transactions.
• Deposit small amounts across several accounts to trigger bonuses.

Because prepaid cards are often purchased with cash and aren’t tied to personal banking information, KYC checks may be ineffective or too shallow to catch the abuse, especially on platforms that prioritize easy onboarding.

4. Employing Antidetect Browsers

To avoid detection by device fingerprinting and behavioral analytics, bonus abusers often use anti-detect browsers or virtual machines that can spoof:

• Operating system details
• Screen resolution
• Time zones and geolocation
• Canvas and WebGL fingerprints

These tools are designed to make each account appear to be coming from a unique, unrelated device, making it much harder for security systems to connect the dots between multiple fraudulent accounts.

Also Read: Fingerprint Heists: How your browser fingerprint can be stolen and used by fraudsters

10 Ways iGaming Companies Can Identify Bonus Abusers

There are a number of methods that iGaming companies can use to identify bonus abusers, including:

1. Look for Suspicious Patterns and Digital Fingerprints

Fraudsters tend to leave subtle clues, especially when they’re operating multiple accounts. You can detect abuse by monitoring:

• IP Addresses: Are multiple accounts being accessed from the same IP or subnet?
• Email Patterns: Do the emails follow predictable structures? (e.g., name01@gmail.com, name02@gmail.com)
• Phone Numbers: Recycled or VoIP-based numbers used repeatedly across accounts
• Device Fingerprints: Are accounts being accessed from the same browser fingerprint, device ID, or OS version?

When these signals cluster, it’s a strong indication that the same individual or fraud ring is behind the activity.

2. Leverage Data-Sharing Networks (Like Group-IB’s Global ID)

Fraudsters move from brand to brand, campaign to campaign. That’s why cross-platform intelligence sharing is one of the most powerful weapons in your arsenal.

Group-IB’s Global ID is a real-time sophisticated fraud intelligence layer that anonymously tracks user behavior across multiple platforms, without compromising user privacy. It helps:

• Spot repeat offenders trying to game your promos using new accounts
• Detect known fraud rings already flagged by other platforms
• Build a shared defense layer against cross-operator abuse

3. Strengthen KYC Checks at the Right Moments

While you don’t want to overburden new users with friction, strategic use of KYC checks can block fraudsters before they cash out.

Use KYC to:

• Verify identity before high-value bonus withdrawal
• Flag mismatched or fake ID documents
• Compare submitted data with behavioral and device metadata

4. Track VPN and Proxy Use Through IP Intelligence

Bonus abusers often rely on VPNs or proxy services to mask their location, appear from a different region, or avoid account linking.

Using IP reputation tools, you can:

• Flag traffic from known VPNs, anonymizers, or hosting providers
• Block access to country-specific bonuses when IP and KYC data don’t align
• Enforce additional checks for high-risk regions or behaviors

When combined with device fingerprinting, VPN detection becomes even more powerful for isolating repeat abuse attempts.

5. Use Wagering Requirements as a Natural Filter

No genuine player expects to cash out a bonus instantly. That’s why wagering requirements (WRs) are still a critical tool in identifying and deterring abuse.

• Users who abandon the platform once WRs are applied = red flag
• Accounts showing minimal gameplay but immediate cashout attempts = high-risk
• WR evasion patterns, like betting both outcomes in sports or playing low-volatility slots, may signal calculated abuse

6. Monitor Player Behavior in Real Time

Fraudsters often leave behind subtle trails, such as repetitive actions, rapid logins, unusual playing patterns, or even IP clusters associated with multiple accounts. Operators need to monitor new player activity continuously and spot suspicious behaviors such as:

• Unusual frequency of bonus claims
• “Cycle” behavior: claiming a bonus, betting the minimum, and withdrawing
• Multiple accounts sharing the same device, IP, or payment method

Tip: Behavioral red flags are often easier to detect over time, so ensure your analytics include session history and cross-account comparisons.

7. Deploy Specialized Fraud Detection Software

Generic anti-fraud tools often fall short in the context of bonus abuse, where the goal is not theft, but extraction through manipulation. That’s why iGaming businesses benefit from purpose-built fraud detection software that can:

• Detect and block multi-accounting, VPN usage, and bot activity
• Analyze device fingerprinting to tie activity back to real users
• Score user behavior against known bonus abuse models using machine learning

For example: Group-IB’s Fraud Protection uses behavioral analytics, Global ID tracking, and real-time risk scoring to flag suspicious activities.

8. Make Bonus Terms Clear and Enforceable

Sometimes, abuse happens simply because bonus terms are confusing or too lenient. Fraudsters love vague language and unclear wagering requirements, they’ll squeeze every loophole they can.

iGaming operators should:

• Write terms in plain language
• Clarify eligibility, wagering, withdrawal, and expiration rules
• Enforce limits such as “one bonus per household/device/IP”
• Use smart bonus abuse prevention logic (e.g., unlocking bonuses only after verified play or KYC checks)

Educate players proactively with in-app tooltips, email breakdowns, or help center guides.

9. Use Smart KYC and Payment Verification

Fraudsters often rely on weak or inconsistent identity checks to slip through the cracks. Strengthening your KYC (Know Your Customer) and payment validation process helps:

• Prevent stolen or synthetic identities from being used
• Block fake accounts funded with prepaid or compromised cards
• Detect multiple users tied to the same identity document or phone number

Pair KYC with geo-verification and behavioral profiling to validate not just who the user is, but how they behave.

10. Segment Users and Customize Bonus Logic

Not every player should get the same bonus. Segment your audience based on trust level, account age, or previous behavior. This way, you can:

• Offer lower-risk bonuses to new or unverified users
• Reward high-LTV, verified players with more generous offers
• Adjust bonus conditions dynamically based on real-time risk scoring

7 Types of Popular Bonus Offers (and Why They’re a Magnet for Abuse)

Bonuses are the backbone of player acquisition and retention strategies in iGaming and online gambling industry. They provide players with that extra nudge to sign up, stay, or make a larger deposit. However, while they’re great for genuine user engagement, these same offers are also prime targets for bonus abusers seeking to cash in without playing fairly.

Here are the seven most common types of bonuses operators use, and how they’re often exploited.

1. Sign-Up Bonuses

This is the classic “thanks for joining us” gift, usually a small amount of bonus cash or credits just for creating an account.

Why it’s popular with abusers:

• Easy to scale with multi-accounting.
• No deposit required = no skin in the game = low risk for fraudsters.
  Some even automate account creation using bots to rake in dozens of sign-up bonuses in one go.

2. No-Deposit Bonuses

Just like it sounds: you get bonus money or spins without having to fund your account. Ideal for trying out games or slots without financial commitment.

Fraud risk factor:

• These attract both bonus hunters and bots.
• Fraudsters can abuse this offer by creating fake accounts, completing minimal activity, and cashing out if the terms allow it even if they never intended to become a long-term user.

3. Deposit Match Bonuses

Operators match all or a portion of a player’s first (or recurring) deposit—commonly seen as “100% deposit match up to $500.”

Common abuse tactic:

• Fraudsters use stolen or prepaid cards to trigger the match bonus, then try to extract both the deposit and bonus through fast play and withdrawal.
• These bonuses often come with wagering requirements, but abusers may use bots or scripts to game the system until they qualify.

4. Free Spin Bonuses

Popular with slots and casino platforms, these offer free spins either as part of a sign-up or loyalty campaign.

• Some abuse this by cycle-spinning across accounts to extract value from every offer, especially if spins come with no wagering requirements.
• Free spins are small but exploitable in volume. A fraud ring can generate thousands of spins with low effort if protections aren’t in place.

5. Refer-a-Friend Bonuses

Get rewarded when your “friend” signs up and deposits? Sounds great, unless that friend is you… 15 times over.

How it’s abused:

• Fraudsters create multiple referral loops using fake accounts and identities.
• They often simulate activity just enough to pass initial fraud checks and trigger the referral payout.

In some cases, they’ll even rotate IP addresses and devices using antidetect browsers to make each “friend” look unique.

6. Loyalty Bonuses

These are rewards for consistent play, often part of a VIP or points-based loyalty program that encourages players to keep coming back.

• Loyalty farming can occur when multiple accounts are used to farm rewards through low-risk or automated play.
• Fraudsters may also exploit reward thresholds, doing just enough to earn bonuses without risking losses.

This one blurs the ethical line, some may argue it’s clever, but it drains marketing budgets meant for real, engaged users.

7. High-Roller Bonuses

Aimed at big spenders, these are custom or high-value offers for players who deposit or bet large amounts like $1,000+.

• While harder to abuse at scale, high-roller bonuses can still be exploited using fraudulent payment methods (like stolen cards or mule accounts).
• Fraudsters may act as whales just long enough to claim the bonus, cash out fast, then disappear before the fraud is flagged.

Because of their size, even one successful abuse case can lead to a five-figure loss.

Group-IB To Your Rescue

Bonus abuse fraud is a persistent threat in the iGaming space. It targets everything from sign-up promos to high-roller perks. As fraudsters grow more sophisticated, operators need to move beyond traditional fraud prevention and adopt smarter, more adaptive strategies.

In this article, we explored how bonus abuse works, the most common tactics used by fraudsters, and how gaming operators can both identify and prevent this form of fraud using data-driven insights, behavioral analysis, and strong policy design.

To effectively combat bonus abuse, online gambling operators should:

1. Monitor player behavior and device patterns for red flags.
2. Strengthen KYC, geo-verification, and bonus logic policies.
3. Leverage shared fraud intelligence to spot known abusers.
4. Use real-time data analytics and automated scoring to catch fraud at the earliest stage.

While these steps go a long way, truly effective defense requires a dedicated, intelligent platform that can adapt as fast as the threats do.

Group-IB Fraud Protection is purpose-built to protect iGaming platforms from bonus abuse and broader gambling fraud threats. Here’s how it helps:

Check out our G2 reviews for more information.

1. Detect multi-accounting with Global ID. Fraudsters often pose as different users across dozens of accounts. Group-IB’s Global ID uses explainable AI and device fingerprinting to identify and block fake users by tracking hardware, IPs, browsers, OS patterns, and behavioral traits, without adding friction for legitimate players.
2. Analyze sessional and transactional patterns. Fraud Protection continuously monitors in-game behavior, promo redemptions, and payout requests to flag unusual activity. Its machine learning models map networks of abuse, helping you catch a fraudster and their entire operation.
3. Stop abuse before it escalates. Group-IB flags threats in real time, so you can act fast, protect your brand reputation, and keep your promotions truly player-focused.

Ready to stop bonus abuse before it drains your budget? Let’s talk. Book a tailored demo of Group-IB Fraud Protection and see how we can help secure your iGaming ecosystem.