Identity Theft in Online Gambling Soars in Spain, Impacting Sports Betting

Nearly 8,000 cases of identity theft were reported in Spain’s online gambling sector in 2024, with sports betting bearing the brunt of the fraudulent activity. A recent report by the Dirección General de Ordenación del Juego (DGOJ), the country’s gambling regulator, reveals the alarming extent of the problem.

The report stems from a protocol established by the Ministry of Consumer Affairs, in collaboration with the Agencia Estatal de la Administración Tributaria (AEAT) and the National Police. This initiative aims to safeguard taxpayers and combat tax fraud within the online gambling landscape.

Sports Betting a Prime Target

The DGOJ’s findings indicate that a staggering 91% of reported identity theft cases occurred within the realm of sports betting. Furthermore, almost 5% of individuals who won over €100 in online games were victims of identity fraud. Preliminary trends suggest this figure could rise further in the coming fiscal year.

How Identity Thieves Operate

The report sheds light on the tactics employed by perpetrators. They often utilize payment methods that are difficult to trace, such as e-wallets and prepaid cards. Their gambling behavior also deviates significantly from legitimate users. This includes placing a higher volume of bets and engaging in longer playing sessions. However, these fraudulent accounts are typically used for only about 7.5 days on average.

A disturbing trend involves the use of identities of family members or acquaintances, particularly in cases involving minors or individuals registered in the Registro General de Interdicciones de Acceso al Juego (RGIAJ), Spain’s self-exclusion registry.

DGOJ Urges Stronger Fraud Prevention

In response to these findings, the DGOJ is calling on gambling operators to bolster their fraud prevention and detection systems. They are also urging operators to strengthen security measures in identity verification processes. Efforts are underway to ensure an effective response for those affected by identity theft. There has been an increase in subscriptions to the Phishing Alert service, reflecting growing cybersecurity awareness among citizens.

The Protocolo de Actuación para Contribuyentes Suplantados (PACS), a protocol designed to assist victims of identity theft, has proven to be a crucial tool. However, the DGOJ emphasizes the ongoing need for robust measures to combat identity theft and fraud in the online gambling sector.

“Identity theft in online gambling is a serious issue that requires a multi-faceted approach involving regulators, operators, and law enforcement,” a DGOJ spokesperson stated.

Key measures being considered include:

• Enhanced identity verification procedures
• Improved fraud detection algorithms
• Increased public awareness campaigns
• Closer collaboration between stakeholders

The DGOJ remains committed to protecting consumers and ensuring the integrity of the online gambling market in Spain.