Melilla to Lead Fight Against Online Gambling Identity Theft

Melilla is set to become a central hub in the battle against identity theft within the online gambling sector. The National Police, through its specialized fraud prevention department, will soon host technical workshops in the autonomous city. These workshops aim to address the growing problem of identity theft affecting Spanish citizens.

Jesús Martínez, Director General of Innovation and Technology of Melilla, explained that these workshops stem from the need to clarify the identity theft protocol. This protocol was jointly created by the National Police, the Tax Agency, the Directorate General for Gambling Regulation (DGOJ), and industry operators. “There were many doubts, and the operator, the bookmaker, had questions about what to do and what not to do,” Martínez stated.

Previously, affected individuals were “much more lost” when they detected irregularities in their tax returns. Identity theft in online gambling is primarily detected through tax data. Operators are now required to report player winnings to the Tax Agency, which appears in citizens’ tax data between March and April of the following year. “You have won 1,500 euros, and it turns out you have never played,” Martínez explained, illustrating how many citizens discover they have been victims of identity theft.

Before the protocol, victims would report to the police, but the issue might be handled by an officer unfamiliar with the complexities. The choice of Melilla as the workshop location is strategic. The autonomous city offers significant tax advantages, making it an attractive location for online gambling operators, similar to Malta, Gibraltar, or Ceuta. “Due to our fiscal peculiarities, the territory is very suitable for online gambling operators,” Martínez emphasized, noting that in Melilla, “you will pay half the taxes you pay elsewhere.”

Currently, 16 operators are based in Melilla, out of approximately 70 legally operating in Spain. These operators generate around 400 jobs, representing nearly 20% of the local GDP. The Director of Innovation and Technology highlighted the crucial role of artificial intelligence and biometrics in combating identity theft.

Operators, subject to substantial fines from the DGOJ, are highly motivated to prevent fraud. They are implementing advanced biometric verification technologies and AI systems to detect fraudulent patterns. The challenge lies in illegal gambling operations based in jurisdictions like Curacao, where regulations are lax. “There is no control over age, bank accounts, money laundering, prohibited individuals, or limits,” Martínez noted.

The Directorate General of Innovation and Technology of Melilla is developing specific training programs to equip professionals with the skills to detect and prevent digital fraud. One notable initiative involves a project with the Ministry of Defense to train military personnel aged 35 to 45 in these competencies before they leave the army. “One of the fundamental aspects is responsible gambling and digital fraud, because that is what operators demand most,” Martínez said, highlighting the sector’s technological nature, employing software developers, computer engineers, and cybersecurity specialists.

Future of the Sector

These workshops mark a significant step in coordinating efforts among all involved institutions to enhance the fight against identity theft in online gambling. According to Martínez, the problem isn’t necessarily increasing, but rather “it is detected more because it did not come to light before.”

Melilla is becoming a symbol of both alert and progress. To combat a crime that evolves with technology, the response must be dynamic. It requires public-private partnerships, institutional coordination, and, above all, political will. Detecting fraud is not enough; anticipation is key. In this endeavor, the autonomous city has the opportunity—and the duty—to lead with vision.