How fraudulent customers with multiple accounts are taking away profits from your online business

Of many industries where DupZapper is used, online gaming has always been a special one. This industry has the most precipitous negative impact of customers with multiple or false identities. Whether it is a money laundering attempt, account takeover, collusion, abusing bonus offerings or a case of a skilled player or cheater, they all are usually perpetrated using false identities. DupZapper helps to detect and prevent fraud associated with false identities and multiple accounts.

We have studied businesses of many of our customers to analyse where the fraud comes from. It turns out that in many cases fraud perpetrators have to resort to registering many accounts, or sometimes stealing credentials of legitimate customers. This is done for many reasons. Even if abuser is not concerned about hiding real identity for legal reasons, most types of fraud will not be profitable unless many accounts are registered.

This can be seen across many types of fraud. Credit card fraud and money laundering requires assuming identity of the real owner of credit card and normally there will be many cards and identities to pursue. We saw that most of our customers struggle to perform KYC full enough that will guarantee to prevent these attempts, as it simply would not be economical. Account takeovers are being done in similar manner, one person gets hold of credentials for multiple accounts, using scamming or other means, and attempts to withdraw credit balances from same devices.

Bonus offerings to provide incentives for customers to start using services or remain loyal are generally designed to prevent losses. However, this happens only for honest customers. A malicious customer usually can create sufficient number of accounts to take advantage of probability theory and extract bonuses as real money in the end.

Skilled players and cheaters create multiple accounts to override set payment and betting limits and try to escape being detected by behaviour analysis.

Player value distribution

Now that we know that most common types of fraud require customers to create multiple accounts, its probably interesting to find out what impact they might have on business.

We have worked in close contact with some of our trusted customers to establish how effective DupZapper can be for their business. We installed DupZapper and collected data without them being actually used by CRM managers and customer service to establish the baseline. Then, we compared data we collected on suspicious accounts with customer LTV values of players. Results were staggering.

Player value distribution

We have discovered that 15% of new registrations were detected by DupZapper as possibly fraudulent and later have actually acquired negative value. Previously it was taken as a norm that 15% of customers generate losses until blocked. Today, DupZapper is being actively used by this company, helping to prevent massive losses from fraudulent activities every month.