6 common online betting scams and how to avoid them

Scams

Don’t roll the dice on your online safety – watch out for bogus sports betting apps and other traps commonly set by scammers

28 Jan 2025
 • 
,
5 min. read

Online gambling is big business. Topping revenue of $84bn in 2023, the business of online casinos, virtual poker and sports betting is on the rise. It’s been helped in no small part by the Supreme Court, whose ruling several years ago effectively allowed US states to legalize sports betting. But as the industry grows and new users come online, scammers looking for quick wins are also targeting the online betting and gambling space in ever greater numbers.

From nefarious online casinos to malicious apps and phishing messages, the list of potential fraud channels continues to grow. If you’re fond of a flutter, take a look at the most common scams we’ve highlighted below, and arm yourself with the knowledge to stay safe.

Top 6 gambling and betting scams

Fraudsters will usually reach their victims via similar channels: that means email, messaging apps and social media, as well as malicious casino sites, gambling apps and potentially even betting forums. Here are some of the most common threats:

1. Phishing

A social engineering technique as old as the internet, it’s no surprise that gambling scammers are also using phishing to achieve their goals. The trick is to impersonate a legitimate online casino or betting company and persuade the victim into handing over their personal and/or financial details – or give you their account logins.

These messages – usually sent via email, but also by social media, messaging apps or text – may contain promises of special offers, designed to lure the victim. Or they could pretend there’s something wrong with their account that needs urgently addressing (usually by filling in login details). The scammer will aim to create a sense of urgency in order to rush the victim into acting without thinking things through properly first. Legitimate branding and spoofed sender domains/phone numbers add further legitimacy.

2. Task scams

The FTC recently warned of a growing threat from a specific type of online job scam in which victims are approached about work, usually via unsolicited messages on WhatsApp or similar. The scammers promise easy work on vaguely worded tasks such as “app optimization” or “product boosting” – where they are told they’ll receive money in return for liking rating products via a specialized app. They may even receive a small sum as supposed evidence that the scheme is legitimate.

However, before long, the scammers ask their victims to put their own money into the scheme, in order for them to complete the next set of tasks. Once they do, the money will be lost forever. Losses reportedly hit $220m for the first six months of 2024 alone. Although not strictly speaking a betting scam, the gamification element has been described as “almost like gambling.”

Fraudulent apps are also an increasingly common way to part gamblers with their money. Victims are attracted to them via flashy internet ads promising quick-and-easy wins. They may be backed by phishing/fake sites populated by fake reviews of the app – something easy to do now in various local languages with AI tools. In some cases, users may even initially be allowed to win small amounts, in order to build their confidence and encourage them to make bigger bets. When they do, any winnings will be locked and the scammers disappear.

One recent example of the threat was a campaign involving 500 deceptive ads and 1,377 malicious websites.

5. Scam tipsters

You should also beware of anyone claiming to offer insider tips online. Betting fraudsters may claim they have an unbeatable system. They may also say that they’ve been banned by digital gambling sites because they keep on winning, forcing them to pass on their tips to betters like you in return for payment.

But, of course, it’s all a lie. Sometimes, such scams can come from unusual sources – such as a world-class poker player who is now facing jail time after fraudulently promising access to “insider information” to give players a winning edge.

6. Fixed-match scam

This is similar to the above example, except the scammer will begin by finding a group of people interested in fixed matches: say 30 individuals. The tipster will request payment from each up front and tell 10 to bet on one outcome, 10 to bet on another and 10 to bet on a third. (In most sports matches, there are only three possible outcomes).

The 10 individuals for whom the tipster predicted the correct result now think they have just betted on a genuine fixed match, and will be incentivized to put more money on the next match. Those who didn’t win will be blocked by the scammer.