New data indicate a new phase in the evolution of fraud in the iGaming sector, with the scale and sophistication of illicit activity rising sharply.
Fraudulent Transaction Volumes Surge 4.5x as Threats Escalate
An industry report released recently by Sumsub indicates suspicious transaction volumes have increased 4.5 times from early 2025 to early 2026, demonstrating the speed at which the threat landscape is changing.
The average value of flagged transactions, meanwhile, has climbed sharply, from just under $4,000 to around $6,500. This suggests that fraudsters are not only more active but are also going after higher-value opportunities.
The overall rate of fraudulent verification attempts has also continued to increase. By the first quarter of 2026 that had climbed to 1.53%, an 18% jump from the previous year and a much sharper gain over two years. This percentage may seem small, but it translates into millions of attempts on platforms worldwide.
One of the biggest changes is how fraud is perpetrated. Bad actors are taking longer on each attempt and are not using fast, automated tactics. According to data, it now takes more than four times longer for fraudulent users to complete verification processes than legitimate players. This is a more calculated approach. Fraudsters are trying again and again and are carefully manipulating the identity checks.
Report Highlights Surge in AI-Powered Verification Fraud Tactics
Artificial intelligence lies at the heart of this transformation. Fraud networks use AI tools to build synthetic identities, alter documents, and generate realistic-looking faces. The methods allow for the generation of large amounts of fake applications rapidly and cheaply, overwhelming verification systems even when individual attempts are not very convincing.
Industry experts say compliance teams are under intense pressure as a result of the rise in AI-assisted activity. Mass production of even low-quality submissions can overwhelm automated defenses and human review processes.
Regional differences continue to be significant. Of the four regions, Africa has the highest prevalence of fraud, while North America has the lowest. However, lower rates are not necessarily lower risk. In more mature markets, fraud is usually more sophisticated and harder to detect and may involve deepfakes or carefully constructed identities.
Elsewhere, trends differ. Fraud levels in Europe have been fairly stable, although attacks are becoming more technologically advanced. In recent years, fraud in Latin America has been on the rise, with fake proof of address documents becoming a common tactic.
The findings point to a wider challenge in the industry that traditional single-layer checks are no longer enough. As the tools used by fraudsters become more sophisticated, operators are increasingly being forced to adopt multi-layered security strategies that include monitoring user behavior across the entire customer journey, rather than just monitoring initial verification.