Engineering Fraud Security Like a Casino Rigs the Game

Feb 27, 2024 🕒 5 min read

Digital Products and Casinos

Ever wondered how casinos keep people glued to those flashing slot machines? It's not just the shiny lights and catchy tunes. Turns out, happiness is contagious, especially when it comes to gambling wins. Casinos discovered that increasing the frequency of smaller wins, even with the same overall house edge, keeps players engaged and spending longer. But this requires precise measurement and targeted interventions, something casinos achieve through sophisticated tracking and experimentation.

The eCommerce and fintech world faces a similar challenge: maximizing revenue while minimizing fraud. This often feels like a delicate balancing act, where too much security friction frustrates legitimate customers and too little opens the door to fraudsters and cybercrime.

So, how do we find the sweet spot? The perfect balance of happy customers and protected profits? Dodgeball steps into the ring, not with brute force, but with intelligence and agility. Here to tilt the odds in your favor with precision and data.

Monitoring The Field

Before you can outsmart the card sharks, you need to know the rules of the game. That means understanding what constitutes fraud in your casino. Dodgeball acts like your keen-eyed security team, meticulously monitoring every bet (transaction monitoring) and correlating suspicious signals with fraud, chargebacks, and other red flags. This comprehensive data collection helps them develop a profile of every player, detecting anomalies, patterns, and tendencies that might indicate foul play (e.g. is this a real consumer device or a fake, bot, or emulator). This profile forms the foundation for additional predictive analytics.

It goes beyond basic account information, meticulously recording device fingerprints, user behavior, page views, session recordings, and transaction details. It's like having a dossier on every player. But knowing who might cheat isn't enough.

Deploying Smart Defenses

You need to stack the deck in your favor. Dodgeball analyzes the data, spotting suspicious patterns like multiple accounts using the same device or a quantity of activity in a suspiciously short amount of time. It's like recognizing the telltale signs of a card counter, knowing who to keep an eye on. Instead of shutting down the entire casino, Dodgeball uses "smart friction" like additional verification steps (2FA, Captcha, etc) for suspicious accounts. It's like putting a security guard on the high-roller tables, not the penny slots. This targeted approach minimizes inconvenience for genuine players while keeping a watchful eye on potential cheaters.

Tracking the Impact: Counting the Chips and Gauging the Mood

Counting the chips: Dodgeball keeps a watchful eye on the fallout of each intervention, like a vigilant pit boss tracking winnings and losses. Did introducing Multi-Factor Authentication (MFA) for high-rollers skute the card sharks without scaring away the casual players? Did adding CAPTCHAs at certain checkpoints deter bots without frustrating genuine customers?

Gauging the mood: But it's not just about numbers. Dodgeball also monitors the customer experience, ensuring the security measures don't create an overly guarded, uptight atmosphere. Imagine grumpy patrons leaving the casino because they felt unfairly suspected or had to wait in a very long line for a withdrawal or cash out. Dodgeball analyzes session duration, error rates, drop-off rates, and approve/deny rates to ensure a balance between security and a welcoming environment.

Refining the Playbook: Experimenting with New Tactics

With this wealth of data, Dodgeball becomes your innovation lab. It helps you iterate on strategies, constantly experimenting with new approaches to tackle specific fraud scenarios:

  • Testing different security measures: Think of it like trying out new slot machines with varying payout mechanisms and bonus features. Dodgeball might test different types of verification steps, hone the effectiveness of its AI models, or introduce new behavioral analysis techniques.
  • Minimizing friction for legitimate players: Just like the casino wouldn't want to burden all their guests with strict ID checks/identity verification, Dodgeball ensures its interventions are targeted and proportionate. We improve risk management with risk score-based rules to identify high-risk transactions requiring stricter verification, while allowing low-risk ones to proceed smoothly.
  • Adapting to the evolving game: Fraudsters, like cunning magicians, keep changing their tricks. Dodgeball lets you stay ahead of the curve by immediately responding to emerging threats and adapting your fraud detection & prevention defenses accordingly. Think of it like the casino adjusting its security protocols immediately as a scam is occurring.

The Payout

Know your odds, before you raise the stakes

Measure before you tackle. Just like the casino tracks winnings and losses, understanding the nature and extent of your fraud problem is crucial before deploying defenses.

Richer data, better bets

The more information you gather about user behavior and transactions, the better Dodgeball can target fraudsters without impacting genuine customers. It's all about having enough cards in your hand to make the right call.

Stay in the game, adapt and win

Learning is key. Fraudsters are constantly changing their tactics, so continuous monitoring and experimentation are key. Dodgeball helps you stay ahead of the curve, always one step ahead of the game.

Summary: The Dodgeball Approach

  • Instrument application pages to track users and invoke session replay
  • Fingerprint users
  • Protect payments (and other important moments) with workflows and integrations designed to resolve specific types of fraud (Machine Learning (ML) and Artificial Intelligence (AI) models)
  • Ensure that your workflows target smart friction (MFA, etc) at problem accounts
  • Observe the impact on fraud
  • Enable Chargeback Analysis
  • Enable iteration and experimentation on workflows to resolve specific scenarios of fraud without introducing too much friction

Dodgeball doesn't promise to turn every player into a high roller, but it equips you with the tools and insights to outsmart the cheaters. It's like having a team of seasoned casino analysts working behind the scenes, ensuring the game is fair, fun, and ultimately, profitable.

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