Mastercard and Visa tied to fraudulent gambling sites: impact on UK consumers and their security

In the last few years, there has been an increase in the number of online gambling sites. With this influx, the UK Gambling Commission (UKGC) has doubled its efforts to regulate the gambling industry, pushing players to choose reputable online casinos. After all, with so many trusted online casino sites in the market, players have quite a wide selection. While it may seem like the UK has no cause for concern, new reports have come to light, showcasing just how important its efforts are. We look into one such report and its effects, which have rippled throughout the industry. 

The MasterCard and Visa Ties to Illegal Sites

The UKGC handles the licensing of gambling sites in the UK. As such, only sites that meet its stringent standards can legally offer their services in the region. Even so, some sites still manage to operate in the region, posing as reputable sites. If you’re wondering just how they do it, the answer lies in how they process payments.

Illegal sites have found ways to incorporate payment gateways that allow players to pay for their wagers through MasterCard and Visa. Not only can they make payments, but they can also receive their earnings through these card processing services!

The Impact of Card Payments on Illegal Sites

While using an illegal gambling site may not seem like much of a problem, recent reports have shown that it comes with a myriad of downsides. How so?

1. Players have been losing money. When a regulator like the UKGC offers a site a license, it also oversees the site’s operations, ensuring that it pays out earnings as advertised per game. Illegal sites do not answer to a higher authority and can thus do as they please. Many players have come forward claiming that they have not received their rightful earnings to the tune of tens of thousands of pounds. However, with no oversight, the players have nobody to turn to for legal action.
2. Players have been losing data. While illegal sites use payment processors like typical regulated sites, there is one caveat. Illegal sites are not subject to the strict security protocols enforced by regulators like the UKGC. As such, they are not liable for any data breaches that occur. It is thus unsurprising that many people using illegal sites have found themselves victims of identity theft, unauthorised transactions, and other cybercrimes that continue to devastate them.
3. Players have experienced emotional distress. Can you imagine winning money only to have your earnings withheld? How about waking up and realising that someone stole your identity? Players who have fallen victim to such crimes have been experiencing a lot of stress and anxiety. What’s worse is that the illegal sites are not answerable to the UKGC or other regulators, so the players have nobody to turn to in their hour of need.
4. Vulnerable players have been targeted. Per the gambling laws, gambling sites are not to advertise their services to vulnerable players such as gambling addicts or minors. If anything, they should provide responsible gambling features to those affected by problem gambling. However, illegal sites are not governed by such laws and often break advertising protocols to maximise their profits. What’s worse, they knowingly use aggressive marketing strategies when marketing their services to vulnerable players.

Over time, these effects have eroded people’s trust in the gambling industry, leaving many to wonder just which sites they can trust and which ones are scams. Unfortunately, this uncertainty has dented an industry that was picking up pace with an estimated 5% year-on-year gross gaming yield.

What is the Government Doing?

Protecting consumers from illegal gambling operators is a key mandate for the UKGC and other such regulators. The UKGC has thus been working with government agencies to crack down on illegal operators by implementing stricter licensing requirements. Additionally, the commission has reworked the existing marketing protocols, instituted a mandatory statutory levy and launched consumer education programs to spread awareness about licensed operators. Already, these efforts are bearing fruit as more players become keener on site verification processes.