Overcoming Deception in Sports Betting: Advanced Technologies Aid Sportsbooks in Managing Significant Data Leaks
In a recent data breach, DraftKings, along with other leading operators such as FanDuel and BetMGM, found their systems compromised through a method known as "credential stuffing." To combat this threat, GeoComply, a company renowned for providing precision geolocation data, has stepped up to the plate.
GeoComply's anti-fraud solution primarily relies on advanced geolocation and location verification technology. By accurately verifying the geographical location of users, GeoComply can detect and block suspicious login attempts that are inconsistent with the user's usual location or occur from unauthorized jurisdictions. This is a common indicator of credential stuffing fraud.
Credential stuffing involves attackers using stolen username-password pairs to gain unauthorized access. GeoComply's solution adds a robust layer of defense by ensuring users are physically located where they are permitted to access the sportsbook. Leveraging real-time geofencing, it validates access, preventing automated or fraudulent logins from disallowed locations—a key vector for credential stuffing attacks targeting sportsbooks.
Moreover, GeoComply’s technology integrates with sportsbooks’ compliance and anti-fraud frameworks, enabling detection of anomalous patterns consistent with credential stuffing. This includes blocking login attempts from IP addresses or devices that do not match the expected geolocation data, thereby reducing fraud risk and protecting account integrity.
In summary, GeoComply’s anti-fraud solution safeguards sportsbooks by using precise geolocation to verify user location and ensure access is legitimate, geofencing to block access from unauthorized locations commonly used in credential stuffing, and integrating with sportsbook systems to identify and prevent fraudulent credential reuse.
GeoComply boasts high-profile partners like BetMGM, DraftKings, FanDuel, Caesars, and Rush Street Interactive. The company has also extended appreciation to law enforcement officers on Law Enforcement Appreciation Day, hosting monthly meetings with law enforcement officials to share information about various investigations.
DraftKings customers lost at least $300,000 in stolen funds in the breach, all of which have been restored, according to the company. The data breach impacted at least 67,995 customers, according to DraftKings' reports.
As the online sports betting sector continues to grow, the need for robust security measures becomes increasingly important. GeoComply's capabilities make it an effective tool for combatting credential stuffing attacks in this highly regulated and security-sensitive industry.
In addition, GeoComply provides tools to its sportsbook clients on how to leverage its data to combat fraud. The company also encourages law enforcement agencies to attend their monthly LEA meetings. With the anticipated rise of non-professional fraudsters due to a potential global recession, the need for such solutions is more critical than ever.
New Jersey regulations on multi-factor authentication define it as a strong authentication that uses two of the following: information known only to the patron, an item possessed by a patron, or a patron's biometric data. Ohio's regulation allows online sportsbook operators to store customer data in cloud-based environments such as platforms designed by Amazon Web Services. GeoComply uses a combination of device data, location information, and behavioral indicators to help operators fight fraud.
Two states have adopted regulations that require online sportsbooks to establish multi-factor authentications (2FA) for customer accounts, adding an extra layer of security in an industry where account takeovers are a common form of cybercrime. As the landscape of online sports betting continues to evolve, GeoComply remains at the forefront of combatting fraud and ensuring the integrity of customer accounts.
References: [1] GeoComply Solutions Inc. (n.d.). Retrieved from https://www.geocomply.com/ [2] GeoComply Solutions Inc. (2021). Retrieved from https://www.geocomply.com/blog/geocomply-named-official-geolocation-provider-for-new-york-online-sports-betting/ [3] GeoComply Solutions Inc. (2021). Retrieved from https://www.geocomply.com/blog/geocomply-named-official-geolocation-provider-for-new-york-online-sports-betting/ [4] GeoComply Solutions Inc. (2022). Retrieved from https://www.geocomply.com/blog/geocomply-named-official-geolocation-provider-for-new-york-online-sports-betting/
- GeoComply's anti-fraud solution, which relies on advanced geolocation and location verification technology, aims to protect sportsbooks from credential stuffing attacks, a common threat in sports betting.
- By ensuring users are physically located where they are permitted to access the sportsbook, GeoComply's solution adds a robust layer of defense to sports betting, reducing the risk of fraud and maintaining account integrity.
- Leveraging real-time geofencing, GeoComply validates access and blocks automated or fraudulent logins from disallowed locations, thus serving as a key tool in the fight against credential stuffing.
- As cybersecurity becomes increasingly crucial in the growing online sports betting sector, GeoComply's capabilities make it an effective partner for sportsbooks in combating credential stuffing and maintaining the integrity of their customer accounts.
