Altenar explains The Rise of APP Fraud in iGaming and the Race by operators to stop it

What follows isn’t just another fraud explainer. It’s a breakdown of what’s really happening, what’s coming next, and what the most switched-on operators are doing about it.

A new wave of fraud is reshaping the iGaming landscape, and it doesn’t begin with malware or data breaches. It starts with trust manipulation — cloned apps, fake agents, and misleading payment prompts that trick users into transferring funds willingly. Known as Authorised Push Payment (APP) fraud, this method has proven alarmingly effective, bypassing traditional detection tools and leaving operators exposed.

According to recent reports, APP fraud cost UK customers nearly £460 million in 2023, with scams growing over 20% year-on-year. The iGaming sector is especially vulnerable, as fraudsters exploit social platforms, spoofed support agents, and fake apps to reach players before they even log in.

As regulators and banks tighten scrutiny, operators are being forced to evolve. Payment providers are introducing tools like Confirmation of Payee (CoP) and behavioural biometrics, while real-time ID verification and open banking integrations are becoming essential to filter fraud before transactions occur.

Experts now stress that fraud prevention must shift from back-office to front-line strategy, with operators demanding more proactive, intent-based fraud controls from their payment service providers.

With reimbursement liability, compliance expectations, and player trust on the line, the industry must embrace smart friction, regionalized fraud strategies, and defensive UX design to stay ahead of the next wave of social-engineered scams.

But there’s good news! This moment offers more than risk. When done diligently, it can provide a strategic advantage. The operators who get fraud prevention right will reduce losses, protect LTV, and increase conversion without compromising integrity. They will also be far better positioned to defend their brand in a market where compliance scrutiny and user expectations only move in one direction.

Legacy payment tools weren’t built for today's threats, but Altenar’s intelligent fraud controls were. Schedule a personal software demonstration of Altenar platform now to see how we help operators manage risk, retain trust, and stay compliant.

Read full article by Ian Macintyre here