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Experts: Online Gambling Still Risky Business

UNITED KINGDOM – As reported by Finance UK: "Consult Hyperion, a leading firm of independent information technology consultants, today revealed the growing problem of payment fraud within the online gambling industry. In fact, according to Consult Hyperion, the major threat to the gambling sector's ability to grow will come from its susceptibility to this fraud, rather than any moral, regulatory or tax concerns.

"…At the moment, payments made to gambling websites use banking industry products such as card payments, bank transfers and money orders. Of these, card payments are probably the easiest for the gambling websites and the most widely used by customers, making them the target of significant fraud.

"…`The failure to handle online payments securely and efficiently could have a severe impact on the online gambling sector in the future,' comments Dick Clark, consultant, Consult Hyperion.

"…When credit cards are used for online gambling, the transactions generated are categorised as card not present (CNP) transactions, a category which has become the fastest growing sector for fraud in the card payments industry.

"For this reason, APACS and the British Retail Consortium have jointly issued a guidance document to help combat CNP fraud.

"…However, although these mechanisms improve authentication, in themselves these initiatives are not sufficient to remove CNP fraud, according to experts at Consult Hyperion…"

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