Real-Time Monitoring for Fraud Prevention

Fraud in iGaming is skyrocketing, with global losses hitting €1.1 billion between 2022 and 2023. Operators in Malta face increasing threats, from bonus abuse (69.9%) to deepfake gambling fraud, which surged tenfold in just one year. Traditional methods can’t keep up with these sophisticated attacks.

Why Real-Time Monitoring Works:

• Instant Fraud Detection: Blocks suspicious transactions in milliseconds.

• AI-Powered Analysis: Learns fraud patterns and adapts to new threats.

• Cost Savings: Reduces chargebacks, false positives, and operational expenses.

Key Benefits:

• 90% fewer false positives, leading to smoother gameplay.

• 40% resource savings for compliance teams.

• €207 cost per €100 chargeback avoided with real-time monitoring.

For Maltese operators, compliance with Malta Gaming Authority (MGA) standards and seamless handling of Euro (€) transactions is critical. Real-time systems ensure fraud prevention while maintaining smooth operations.

Malta’s iGaming industry thrives on trust and security. Real-time fraud prevention isn’t just an option - it’s essential to protect revenue, meet compliance, and maintain player confidence.

Build Realtime Fraud Detection AI from Scratch - End to End Machine Learning Project - Part 1

How Real-Time Monitoring Works

Real-time fraud detection keeps an eye on every transaction from the moment it begins, analysing data in a matter of milliseconds. This swift process ensures that legitimate transactions go through without a hitch, while suspicious ones are flagged or stopped before they can be finalised.

Key Components of Real-Time Fraud Detection

Real-time monitoring depends on three core elements that work together to detect and prevent fraudulent activity.

• Data Processing Layer: This is the system's backbone, handling millions of data points in an instant. It collects everything from basic transaction details - like amounts and timestamps - to more complex indicators such as device fingerprints and geographical data.

• Machine Learning-Based Anomaly Detection: This component learns what normal user behaviour looks like and identifies deviations that could signal fraud.

• Automated Response Protocols: These protocols trigger immediate actions when suspicious activity is detected, such as requiring additional authentication or blocking a transaction outright.

"SEON performs transaction monitoring for iGaming through a sophisticated approach that integrates advanced technology with customisable rules and real-time analytics. The platform leverages machine learning to enhance fraud detection capabilities, recommending and refining risk rules based on data patterns and improving the identification of anomalies in real time."

The power of these components becomes evident in large-scale operations. For example, Visa handles over 500 million transactions daily, using real-time monitoring, advanced analytics, and machine learning to spot and stop fraud.

These elements lay the groundwork for AI-powered real-time analysis, which takes fraud detection to the next level.

AI-Driven Analysis in Real-Time

Artificial intelligence turns raw transaction data into actionable insights for fraud prevention, all within milliseconds. In high-volume environments like iGaming, AI can detect subtle behavioural anomalies that might otherwise go unnoticed.

AI focuses on several critical areas at once: deposit patterns to spot unusual timings or amounts, device fingerprints to catch multiple accounts using the same device, and geographic inconsistencies to flag mismatched locations.

One of AI's standout features is its ability to continuously learn and adapt. As fraudsters come up with new tactics, AI models evolve to recognise emerging patterns, improving detection accuracy. For instance, a major poker platform saw a 30% drop in collusion-related incidents after adopting AI-based fraud detection systems.

Speed is a crucial advantage of AI. It processes real-time data almost instantly, allowing platforms to block or flag suspicious transactions without slowing down legitimate users. Moreover, AI excels at reducing false positives, which helps avoid unnecessary frustration for genuine customers. Group-IB Fraud Protection, for example, achieves 20% fewer false positives compared to other providers.

AI doesn't just stop at real-time analysis; it also uses historical data to predict potential fraud scenarios and suggest preventive measures before attacks happen. This forward-looking approach is especially useful in iGaming, where fraudsters often exploit high-traffic periods like major sporting events.

For iGaming operators in Malta, AI's precision ensures secure and seamless transactions while meeting MGA standards. This combination of advanced technology and compliance helps solidify Malta's position as a trusted iGaming hub.

Fraud Prevention for Maltese iGaming Operators

Malta has earned its place as Europe's iGaming hub, which means operators here must adhere to strict regulatory and transactional standards. The Malta Gaming Authority (MGA) enforces rigorous requirements, pushing operators to adopt advanced fraud prevention systems. At the same time, the local market demands seamless handling of Euro transactions, formatted to meet regional conventions. These systems are not just a regulatory necessity but also a practical tool for ensuring smooth operations.

Compliance with MGA Regulations

Real-time fraud detection systems play a key role in helping operators comply with MGA regulations. These systems go beyond basic monitoring, offering continuous oversight of financial activities to meet the Authority's high standards.

At the core of MGA compliance is Know Your Customer (KYC) verification, which requires real-time validation of user documents, including biometric checks, while continuously profiling user behaviour. This ensures that operators can detect irregularities as they happen.

Transaction monitoring is another critical element, relying on AI-driven analysis to flag suspicious patterns. These systems generate threshold alerts automatically, ensuring that operators maintain detailed audit trails for regulatory reviews. By adopting risk-based approaches, operators can focus their attention on high-risk customers and transactions while staying aligned with anti-money laundering (AML) requirements. AI also helps by reducing false alerts, allowing compliance teams to focus on genuine threats. For Maltese operators, keeping data accurate and updating monitoring rules regularly is essential to tackle ever-evolving challenges.

MGA regulations also mandate monthly risk reviews and quarterly audits. Real-time monitoring systems simplify this by generating detailed reports, covering everything from suspicious transaction reports (STRs) to filings required by regulators.

Currency and Formatting for Malta

Beyond compliance, precise handling of Euro transactions and local formatting standards is vital. Maltese operators primarily deal in Euros, so their systems must correctly process amounts like € 1,000.00, using a period for decimals and a comma for thousands. This ensures clarity and aligns with local expectations.

Dates follow the DD/MM/YYYY format, meaning a transaction timestamp would appear as 04/05/2025, not in the American style. Similarly, the 24-hour clock (e.g., 14:30) is standard, reducing confusion in transaction logs and ensuring consistency.

A real-world example highlights the importance of localisation: In March 2023, a European client using Fluid's intelligent payment routing system managed to cut transaction costs by 15% and speed up settlement times by 20%. This improvement underscores how proper localisation can enhance fraud detection while boosting efficiency.

When displaying large transaction amounts, the European format 1.234,56 is used to ensure clarity and consistency across all interfaces, from payment gateways to fraud alerts.

Language also plays a role in compliance. Malta follows British English spelling, so terms like "licence" and "colour" are standard in reports and communications. Ensuring this consistency is crucial for regulatory submissions.

Lastly, real-time monitoring systems must accommodate the diverse payment methods popular in Malta. Traditional bank transfers, which take 1–3 business days, and e-wallets, which process payments within 24 hours, each have unique formatting and fraud detection needs. These systems must align with local user preferences while meeting regulatory standards, ensuring smooth and secure transactions across the board.

Benefits of Real-Time Monitoring for Fraud Prevention

Real-time monitoring plays a critical role in bolstering fraud prevention for iGaming operators. By instantly detecting and blocking fraudulent transactions, it safeguards both operator funds and customer accounts. This approach enables quicker responses, fewer false alerts, and noticeable cost savings.

Faster Fraud Detection and Response

When it comes to fraud prevention, speed is everything. Real-time monitoring systems can identify suspicious activities in milliseconds, halting fraudulent transactions before they even process. This swift action not only prevents unauthorised withdrawals but also protects players from account breaches. Using AI, these systems analyse a multitude of variables to identify fraud patterns - whether it’s bonus abuse, multi-accounting, or player collusion. For operators in Malta managing Euro transactions, this rapid detection is especially crucial during peak gaming periods when transaction volumes spike. Beyond just speed, AI-driven systems also reduce disruptions by cutting down on false alarms.

Fewer False Positives

One standout advantage of AI-powered monitoring is its ability to drastically reduce false positives - by as much as 90%. Traditional systems, which rely on rigid rules, often flag legitimate but unusual activity as fraud, leading to unnecessary disruptions.

"By predicting context and behaviour, AI can detect patterns the human brain cannot, and can distinguish between legitimate unusual activity, such as a rare entertainment splurge on a new television or concert tickets, and actual fraud."
– Seckin Yilgoren, Mastercard's senior vice president of security solutions in North American markets

This smarter detection means fewer interruptions for legitimate players and a more efficient allocation of resources for compliance teams. For instance, if a player deposits €500.00 for a weekend gaming session, an intelligent system would recognise this as standard behaviour rather than flagging it as suspicious. This keeps players engaged while allowing compliance teams to concentrate on real fraud threats. The result? A 10%-15% boost in incremental profit thanks to fewer false alarms.

Cost Savings and Efficiency Gains

Real-time monitoring doesn’t just prevent fraud - it also delivers significant cost savings. By stopping fraudulent transactions before they’re processed, operators avoid direct financial losses. Additionally, automation reduces the burden on compliance teams, freeing up resources for more strategic tasks.

Take Soft2Bet as an example. By automating risk reviews with SEON, they managed to free up 40% of their resources. Fraudulent returns, which accounted for about 14% of all returns in 2023 and cost merchants over $101 billion annually, can also be reduced. For iGaming operators, this means lower operational costs and fewer chargebacks, all while maintaining compliance with Malta’s stringent regulations.

Moreover, these systems help reduce chargeback-related fees, protecting operator revenue further. Automation allows compliance teams to focus on high-priority alerts, streamlining transaction monitoring processes.

Over time, these efficiencies translate into a competitive edge, reducing fraud losses, cutting operational costs, and improving the overall experience for players.

Case Study: Using Fluid for Fraud Prevention in Malta

To see how real-time monitoring can transform fraud prevention, let’s dive into how Fluid’s AI-powered digital cashier solution tackles one of the biggest challenges for iGaming operators: chargeback fraud.

Fraud Scenario: Reducing Chargeback Fraud

Chargeback fraud is a major headache for iGaming operators in Malta. This type of fraud, often referred to as "friendly fraud", occurs when legitimate customers dispute valid transactions. The costs add up quickly, especially with fraud increasing by 30% year after year. Operators need advanced tools to keep pace with this growing issue.

Malta's strict regulatory framework, governed by the Malta Gaming Authority (MGA), adds another layer of complexity. Fraud prevention systems must not only be effective but also align with compliance requirements. Traditional methods often fall short when it comes to addressing the subtleties of chargeback fraud.

Fluid steps in with its real-time behavioural analysis and predictive detection technology. By analysing user behaviour, location, and interaction patterns, the system verifies identities and builds detailed user profiles. This allows it to differentiate between legitimate unusual activity and actual fraud. Fluid’s AI-powered solution identifies risky players and affiliates before fraud occurs, stopping incidents in their tracks while ensuring legitimate users aren’t inconvenienced. By continuously monitoring transaction patterns, the system flags suspicious activity early, bridging the gap between detection and prevention seamlessly.

Results Achieved with Fluid

Fluid’s advanced monitoring tools have delivered tangible results in reducing chargeback fraud. A standout example is its partnership with PowerPlay, a Canadian iGaming operator, in February 2025. PowerPlay integrated Fluid’s intelligent deposit management system, real-time transaction tracking, and fraud prevention mechanisms to enhance its payment processes. The result? A smoother, faster, and more secure payment experience for players.

"PowerPlay is committed to providing the best possible experience for our players, and fast, secure payments are a huge part of that. With Fluid's technology, players will enjoy a more intuitive and localised payment experience, making deposits faster and smoother. This partnership also enhances our operational efficiency, ensuring we continue to deliver top-tier gaming experiences."
– Dean Serrao, CEO of PowerPlay

Fluid’s real-time data and analytics give operators unprecedented insight into user behaviour and cashier interactions. This enables compliance teams to act quickly and decisively, reducing the time between detecting fraud and responding to it.

For Maltese operators, Fluid’s system is tailored to meet MGA requirements and efficiently manage Euro transactions. Features like clear billing descriptors and 24/7 monitoring not only ensure compliance but also reduce disputes. The benefits go beyond fraud prevention - lower chargeback rates mean reduced processing fees, better relationships with payment processors, and a smoother experience for legitimate users. This, in turn, leads to higher conversion rates and improved player satisfaction - key advantages in Malta’s highly competitive iGaming market.

Roberto Rubio, CEO of Fluid, highlights the broader impact of these improvements:

"We're thrilled to welcome PowerPlay to the Fluid network. They're a fantastic operator with a clear focus on player experience, and we're excited to provide them with an advanced payments solution that directly contributes to their bottom line."

Payment Integration with Security in Mind

Fluid’s approach to fraud prevention is both practical and thorough, supporting multiple payment types commonly used in Malta. Each payment method comes with its own integration needs and security measures:

Future of Fraud Prevention in iGaming

The fight against fraud in the iGaming industry is constantly evolving, fuelled by rapid technological advancements. With the sector losing an estimated €5.5 billion annually to fraudulent activities, operators face the dual challenge of staying ahead of increasingly sophisticated threats while adapting to new payment methods and player behaviours.

Emerging technologies are poised to reshape the way fraud is detected and prevented, building on the success of real-time monitoring systems already in use.

Monitoring Cryptocurrency Transactions

As cryptocurrencies gain traction in iGaming, fraud prevention strategies must adapt. In 2024, cryptocurrency transactions in the sector surged by 45%. While this growth presents new opportunities, it also introduces significant challenges. The anonymity that cryptocurrencies offer has created a new playground for fraudsters, and the real-time nature of these transactions makes recovering stolen funds particularly difficult.

Traditional fraud prevention tools struggle to keep up with the unique nature of cryptocurrency. Operators now need to implement robust, tailored solutions to address these risks, especially as regulations around crypto continue to evolve. In 2021, €7.9 billion worth of cryptocurrencies was laundered - a 30% increase from the previous year.

Kevin Yang of Nibiru highlights the challenges:

"Crypto is like the Wild West right now because people can get attacked by somebody on the other end of the world with no jurisdiction, law enforcement, or extradition. That makes it a playing ground for fraudsters." – Kevin Yang, Nibiru

However, blockchain technology also presents a unique opportunity. Its transparency allows operators to trace the origin of funds, providing a powerful tool against fraud. As Baptiste Forestier, Head of Compliance at Hero, explains:

"Leverage the power of the blockchain and can track the origin of funds from the beginning." – Baptiste Forestier, Hero

A multi-layered approach is essential for effective crypto fraud prevention. Tools like address whitelisting and blacklisting help manage risk, while advanced blockchain analysis software can identify suspicious transactions. Machine learning algorithms designed specifically for crypto exchanges are also becoming indispensable for real-time monitoring.

The regulatory landscape is tightening as well. In 2022, Robinhood Markets' cryptocurrency branch faced a record €27.6 million fine for failing to meet anti-money laundering and cybersecurity standards. For operators based in Malta, this serves as a critical reminder to implement fraud prevention measures that not only meet but exceed regulatory requirements.

Adapting to New Fraud Patterns

Fraudsters are constantly innovating, and their tactics are becoming more complex. Beyond the challenges posed by cryptocurrencies, stolen credentials have been a factor in 31% of security breaches. This means fraud prevention systems must evolve beyond static, rule-based models.

Adaptive machine learning is proving to be a game-changer in detecting new fraud tactics. These systems use complex neural networks to monitor financial transactions and identify suspicious patterns. With the global machine learning market projected to exceed €104 billion by 2025, investment in these technologies is only set to grow.

Gaming operators are increasingly turning to biometric identification and AI-driven monitoring to detect fraud in near real-time. By analysing user behaviour, device fingerprints, and transaction histories, these systems create comprehensive risk profiles. Multi-factor authentication is becoming the norm, and biometric age verification is gaining traction in sectors with age-restricted content.

The effectiveness of these technologies is already evident. Riot Games, for instance, implemented an advanced AI system that reduced account hijacking attempts by 92%. Similarly, Soft2Bet's Chief Compliance Officer noted the impact of AI-powered fraud prevention:

"SEON significantly enhanced our fraud prevention efficiency, freeing up time and resources for better policies, procedures and rules." – Soft2Bet Chief Compliance Officer

Bonus abuse remains a particularly tricky issue, accounting for over 50% of all fraud cases in the gambling sector. Between 2022 and 2023, the betting industry lost an estimated €1.1 billion to incentive abuse. Advanced tools now use device fingerprinting, IP geo-verification, and behavioural analysis to detect and prevent such exploitation.

Looking ahead, operators are expected to collaborate more closely by sharing anonymised fraud data. This will enable AI systems to build more robust threat intelligence networks, allowing platforms to flag or block suspicious transactions more efficiently.

For operators in Malta, the challenge lies in balancing robust security measures with a seamless user experience. Protecting users is essential, but it must not come at the cost of feeling intrusive or compromising personal data. The most successful platforms will combine advanced fraud prevention technologies with transparency and trust-building efforts. This approach not only safeguards operations but also fosters stronger customer loyalty.

Fluid's AI-powered tools align with these trends, offering real-time behavioural analysis and predictive detection. By identifying risks while ensuring a smooth payment experience, such systems are becoming indispensable for operators navigating Malta's competitive iGaming landscape. As fraud tactics grow more sophisticated, adaptive solutions like these will play a critical role in protecting both platforms and players.

Conclusion

In the iGaming industry, real-time monitoring has become a critical tool for fraud prevention. The days of relying solely on reactive measures are long gone, especially as fraud cases in the sector have surged by 64% between 2022 and 2024.

Statistics reveal the impact of adopting advanced monitoring systems. For example, businesses using real-time monitoring have successfully reduced fraud losses by up to 60% and slashed manual investigation times by 45%. A leading digital bank in Southeast Asia serves as a prime example of these benefits. For iGaming operators in Malta, this underscores the immense potential of investing in cutting-edge monitoring technologies.

By leveraging AI-powered analysis, behavioural tracking, and adaptive machine learning, operators can tackle a wide range of fraud risks. These include detecting bonus abuse - which can drain up to 15% of industry revenue - as well as preventing account takeovers and money laundering. Real-time monitoring offers a robust, all-encompassing solution, aligning seamlessly with Fluid's advanced payment technologies.

For Maltese operators, Fluid's AI-driven digital cashier provides the perfect balance of strong security measures and a seamless user experience. With its ability to deliver real-time insights and sophisticated fraud detection, Fluid helps protect revenue without compromising customer satisfaction.

As fraud tactics grow more advanced and cryptocurrencies continue to reshape payment systems, operators must embrace adaptable monitoring solutions. With businesses losing an estimated 5% of their revenue to fraud annually, the cost of inaction is simply too high.

Fraud prevention requires a comprehensive strategy that not only stops fraud in its tracks but also detects emerging threats and ensures compliance - all while maintaining a smooth user experience. For Malta’s competitive iGaming market, these measures are essential for achieving sustainable growth and meeting regulatory demands.

FAQs

How does real-time monitoring help iGaming operators in Malta reduce false fraud alerts?

Real-time monitoring is a game-changer for iGaming operators in Malta, helping to cut down on false fraud alerts by using advanced algorithms and AI-based analysis. These systems work by instantly examining player behaviour and transaction patterns, making it easier to separate genuine activities from potentially fraudulent ones. By zeroing in on unusual betting patterns, operators can significantly reduce unnecessary alerts on legitimate transactions.

This not only makes fraud detection more precise but also enhances the player experience by minimising unnecessary disruptions for honest users. On top of that, real-time monitoring tools allow operators to respond swiftly to suspicious activities, reducing false positives and ensuring a secure and smooth payment process for everyone involved.

How does AI help iGaming platforms prevent fraud and stay ahead of emerging threats?

How AI is Changing Fraud Prevention in iGaming

AI is reshaping how the iGaming industry tackles fraud by introducing real-time transaction monitoring and leveraging advanced machine learning to spot unusual activity. These tools can quickly flag suspicious behaviour, giving platforms the ability to block fraudulent transactions almost immediately. This not only safeguards players but also reinforces trust in the platform.

What sets AI apart is its capacity to keep up with emerging threats. By analysing both historical data and live inputs, AI systems continually learn and adapt, staying a step ahead of increasingly sophisticated fraud tactics. This forward-thinking approach ensures iGaming platforms remain secure and prepared in an ever-evolving digital world.

Why is it important for iGaming operators in Malta to comply with MGA standards, and how can real-time monitoring help?

Compliance with Malta Gaming Authority (MGA) Standards

For iGaming operators in Malta, staying compliant with the Malta Gaming Authority (MGA) standards isn't just a formality - it's a must. These regulations are in place to ensure legal operations, protect players, and create a gaming environment that people can trust. The MGA takes a firm stance against issues like fraud, money laundering, and other unlawful activities. Falling short of these standards can lead to hefty fines, revoked licences, or even long-lasting damage to an operator's reputation.

One critical way to stay on the right side of these regulations is through real-time transaction monitoring. This technology allows operators to spot and report suspicious activities as they occur, helping to meet anti-money laundering (AML) requirements. By catching fraudulent behaviour in the moment, operators not only minimise financial risks but also safeguard their players and strengthen trust with both regulators and customers.

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