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Fraudsters in Canada Shift Focus to Travel and Leisure

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As the prevalence of digital fraud attempts on businesses and consumers continues to rise, TransUnion’s newest quarterly analysis found that fraudsters are re-focusing their efforts from financial services to the travel and leisure and gaming industries.

Across industries, the rate of suspected digital fraud attempts1 rose 16.5% globally when comparing Q2 2021 to Q2 2020. In Canada, the percentage of digital fraud attempts increased at a much higher rate of 44.9% during the same time period. Gaming and travel and leisure were the two most impacted industries globally for the suspected digital fraud attempt rate, rising 393.0% and 155.9% in the last year, respectively. In Canada, this rate rose 209.8% for gaming and 216.1% for travel and leisure.

TransUnion monitors digital fraud attempts reported by businesses in varied industries such as gambling, gaming, financial services, healthcare, insurance, retail and travel and leisure, among others. The conclusions are based on intelligence from billions of transactions and more than 40,000 websites and apps contained in its flagship identity proofing, risk-based authentication and fraud analytics solution suite – TransUnion TruValidate.

“It is quite common for fraudsters to shift their focus every few months from one industry to another,” said Anne-Marie Kelly, head of Market Development, Identity Management and Fraud Solutions at TransUnion. “Fraudsters tend to seek out industries that may be seeing an immense growth in transactions. This quarter, as countries began to open up more from their COVID-19 lockdowns and travel and other leisure activities became more mainstream, fraudsters clearly made this industry a top target. The immense growth in gaming fraud also can likely be attributed to the shifts in focus of fraudsters as this growing market becomes a larger target.”

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An example of the shift in focus of fraudsters can be seen in financial services. Global financial services suspected online fraud attempt rates had risen 149% when comparing the first four months of 2021 and the last four months of 2020. But when comparing Q2 2021 and Q2 2020, the rate of suspected online financial services fraud attempts have still risen, but at a much lower rate of 18.8% globally and 29.7% in Canada.

Global Industry Year-over-Year Suspected Digital Fraud Attempt Rate Increases and Declines in Q2 2021

Industry Suspected Fraud
Percentage
Change
Top Type of Fraud
Largest Percentage Increases
Gaming 393.0% Gold Farming
Travel & Leisure 155.9% Credit Card Fraud
Gambling 36.2% Policy/License Agreement Violations
Largest Percentage Declines
Logistics -49.2% Shipping Fraud
Telecommunications -30.8% True Identity Theft
Insurance -16.7% Suspected Ghost Broker

Industry Year-over-Year Suspected Digital Fraud Attempt Rate Increases and Declines in Q2 2021 Coming from Canada

Industry Suspected Fraud
Percentage
Change
Top Type of Fraud
Largest Percentage Increases
Travel & Leisure 216.1% Credit Card Fraud
Gaming 209.8% Gold Farming
Retail 139.4% Inappropriate Content
Logistics 90.3% Shipping Fraud
Largest Percentage Declines
Telecommunications -97.2% True Identity Theft
Gambling -39.8% Policy/License Agreement Violations
Communities (Online dating,
forums, etc.)
-22.2% Profile Misrepresentation

More than one-third of consumers continue to be targeted by COVID-19 related digital fraud

As online fraud attempts against businesses continue to escalate, one in three consumers stated that they have been targeted by a digital fraud scheme related to COVID-19 during the second quarter of 2021. TransUnion’s Consumer Pulse study in June 2021 found that approximately 36% of global survey respondents said they were targeted by fraudsters in COVID-19 related digital schemes. The same percentage of respondents (36%) in Canada also said they were targeted.

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Phishing is the top type of COVID-19 related digital fraud impacting global consumers in Q2 2021. Phishing is a cybercrime that uses methods like email, text messages and websites to steal personal information, which criminals use to commit identity and financial crimes. Among global consumers who say they were targeted with COVID-19-related digital fraud, 33% state they have been targeted by or fallen victim to such fraud. Stolen credit card or fraudulent charges was the second most cited type of COVID-19 related online fraud among those targeted, affecting global consumers at 24%. In Canada, phishing was number one at 41% followed by stolen credit card or fraudulent charges at 25%.

“More than one in three Canadians surveyed have been targeted by or fallen victim to digital fraud during the pandemic, placing even more pressure on businesses to ensure their customers are confident in transacting with them,” said Kelly. “As fraudsters continue to target consumers, it’s incumbent on businesses to do all that they can to ensure their customers have an appropriate level of security to trust their transaction is safe all while having a friction-right experience to avoid shopping cart abandonment.”

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Inspired Entertainment Partners with AGLC

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Inspired Entertainment Inc., a leading B2B provider of gaming content, technology, hardware and services, announced that it has entered an agreement with Alberta Gaming, Liquor and Cannabis, an agency of the government of the Canadian province of Alberta that oversees casino gaming (AGLC). Following a successful six-month trial period, AGLC has committed to purchase 150 new Valor terminals. Deployment of the new terminals is expected to be completed by the end of the second quarter of 2024.

“We are delighted to welcome AGLC as a valued customer. AGLC’s decision to order 150 Valor cabinets underscores the success demonstrated during the trial period as well as the strength of our product portfolio. We look forward to a long and prosperous partnership with AGLC,” Brooks Pierce, President and Chief Executive Officer of Inspired, said.

“We remain committed to expand in the attractive Canadian markets by delivering exceptional gaming solutions with both our gaming and digital products. Adding Alberta to our existing footprints in Ontario and Saskatchewan is the next step as we continue to see growth opportunities from the Canadian markets.”

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Canada

Delasport Expands in Ontario with a new deal with Green Brick Labs

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Leading iGaming supplier Delasport expands further in Ontario through a sportsbook deal with Canadian operator Green Brick Labs (GBL).

The global software company will provide its award-winning Plug & Play Sportsbook iFrame solution, so that their new partner can add it to their growing platform.

The deal is expected to come into fruition by the end of this quarter and is yet another strategic move by Delasport, who successfully obtained an Ontario license earlier this year.

‘We are happy to extend our foothold in Ontario and make it happen with a great partner like Green Brick Labs, adding to our confidence as a leading software supplier’, says Delasport’s VP of Business Development Rosaire Galea Cavallaro. ‘Our Plug & Play sportsbook iFrame solution will skyrocket GBL’s operations due to the high quality of service they will be able to provide to their customers and we couldn’t be prouder.’

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The Canada-based operator shares a similar opinion and as much excitement for the new partnership:

‘This is exactly the type of product we needed and is yet another proof that we provide the best solutions on the market for our customers’, GBL’s CEO Matt Rathbun comments. ‘At GBL, we prioritize great user experience, so this deal fits our vision perfectly.’

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Canada

The Mill Adventure Partners with GeoLocs to Offer Advanced GeoLocation Services to Operators

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GeoLocs, a leading provider of advanced geolocation compliance technology dedicated to the iGaming industry, is thrilled to announce its partnership with The Mill Adventure, a pioneering platform provider.

The partnership will see The Mill Adventure seamlessly integrate GeoLocs, a comprehensive geolocation service, into their platform, offering robust, precise, and secure geolocation verification for their operator partners. This integration ensures guaranteed compliance, enhances security, and prioritises player privacy (as seen by the recent ISO certification awarded to GeoLocs and mkodo), all while delivering a superior experience to users when verifying their location on iOS, Android, and desktop with no need for additional downloads or companion apps.

“We are very excited about our partnership with The Mill Adventure,” said Stuart Godfree, Managing Director of GeoLocs. “Our advanced geolocation technology perfectly complements The Mill Adventure’s cutting-edge platform, enabling operators to offer a more secure, compliant, and user-friendly gaming experience.”

The Mill Adventure is renowned for its innovative solutions that empower operators to create unique and engaging gaming experiences. By leveraging GeoLocs’ geolocation technology, The Mill Adventure will provide operators with the tools they need to ensure precise geolocation verification, fraud prevention, and adherence to local gaming regulations, as well as a unique player experience that will set their clients apart from competitors, in markets such as Ontario, Canada. This partnership emphasises both companies’ commitment to innovation, security, and regulatory compliance.

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“Integrating GeoLocs’ geolocation services into our platform offering not only enhances our compliance capabilities but also allows us to offer secure and enhanced gaming experiences to operators and their users,” said Robert Bowell, Chief Operations Officer of The Mill Adventure. “This collaboration reinforces our mission to deliver top-tier solutions to the iGaming industry.”

As the iGaming industry continues to evolve, the importance of accurate geolocation services cannot be overstated. The partnership between GeoLocs and The Mill Adventure is a significant step forward in addressing these needs, providing operators with the tools necessary to thrive in a competitive market.

For more information about GeoLocs and The Mill Adventure, please visit geolocs.io and themill.io

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