Lottoland Achieves 32x ROI from Unified Fraud Prevention

Industry

iGaming

Use Cases

• Account Takeover
• Bonus Abuse

Background

Lottoland was founded in 2013 by a team united by their mutual frustration with traditional lottery offerings. From humble beginnings with just seven employees, the company has grown into a leading online iGaming operator active across four continents, with over 19 million customers.

At the heart of Lottoland’s success is its unwavering focus on the customer, prioritizing a seamless customer experience above all. Lottoland’s diverse product range includes over 30 lotteries across the world and over 300 games such as scratchcards, blackjack, roulette, slots, and its latest addition, sports betting.

What truly sets Lottoland apart is its collaborative, creative spirit. By fostering open communication across departments and always prioritizing customer needs, the company continuously strives to implement the best solutions to deliver exceptional user experiences.

Before SEON

• Fraudulent players access during onboarding
• Account takeover, bonus abuse, and chargeback fraud
• Significant manual effort to mitigate fraud
• Compromising of user experience & disruption of the player journey
• Limited data insights & the absence of ML pattern detection

With SEON

• Real-time player registration monitoring
• Minimizing disruption to genuine players
• Block suspicious activity at onboarding
• Automation and efficiency improvements

The Challenge

Despite Lottoland’s growth, the company encountered several fraud-related challenges that negatively impacted player satisfaction and hampered operational efficiencies:

• Onboarding Vulnerabilities: The primary issue was the onboarding process allowed fraudulent players access to the platform. Significant manual effort was used to mitigate this. Still, it took time in which there was the potential for bad actors to take advantage of promotional offers, impacting both Lottoland & legitimate customers.
• Persistent Fraud Issues: Lottoland grappled with recurring fraud issues, including account takeover (ATO), bonus abuse, and chargeback fraud.
• Inefficiencies in Fraud Detection: The process of detecting and blocking fraudulent accounts at the registration stage was heavily reliant on manual reviews and back-office reports. This reliance led to significant inefficiencies, compromising the user experience and disrupting the player journey.
• Limitations in Fraud Analysis: Reviews by the fraud and risk teams were subjective, hampered by limited data insights and the absence of machine-learning-based pattern detection. This lack of advanced technology hindered the processing of large data sets and the ability to identify anomalies quickly and accurately.

As a company committed to responsible gambling and regulatory compliance, fraud put Lottoland’s reputation and potential for growth at risk.

We came across an account that was exhibiting abnormal behavior. We requested reports from our back-office team to understand more information about the player’s IP address. It took us a few days to piece together that the customer experienced an ATO attack and to identify all of the accounts involved. By that time, the customer experienced a loss, and so did we.

Richie Burton
Head of Player Protection, Lottoland

The Solution

In its search for a comprehensive fraud solution, Lottoland focused on criteria that reflected its customer-centric values:

• Preventing ATO and multi-accounting to maintain a secure iGaming environment
• Minimizing bonus abuse to safeguard marketing investments
• Optimizing fraud detection efficiency while ensuring a frictionless customer experience

SEON’s fraud detection & prevention solution distinguished itself from competitors with its user-friendly and intuitive interface, real-time data capabilities, and an advanced machine learning-backed rules engine. The API-first approach and continuous support from SEON’s team of dedicated, knowledgeable fraud experts further confirmed their choice.

The Results

Implementing SEON’s solution has empowered Lottoland to proactively combat fraud while upholding their commitment to exceptional customer experiences:

Successful Fraud Prevention and Mitigation:

• 32x ROI by safeguarding marketing campaigns from bonus abuse
• 190% increase in multi-accounting detection at registration
• 10% increase in stopping fraudulent sign-ups

Operational Improvements:

• 50-hour-per-week reduction in investigating fraud across various teams including customer success, legal, and compliance thanks to automation from custom and machine learning-suggested rules

The additional data insights from digital footprinting and device intelligence enabled them to stop players from non-approved countries onboarding their platform. They leveraged rules around country and IP address mismatches to automatically flag suspicious users early in the process who were trying to onboard from unapproved countries, ensuring they maintained compliance with gambling laws and licenses.

Lastly, the automation and efficiency improvements enabled them to reallocate time and resources toward strategic initiatives and continuous improvement.

Joeran Kiencke (Manager Risk Operations): “With SEON, you can reduce bonus abuse, making marketing spend more efficient and giving teams better visibility into campaign success. SEON shows you how much fraud is on the market, and with their help, you can reduce it. Working in real-time is a key difference, and to top it off, the customer support is excellent; getting an answer very quickly, in easy-to-understand terms with examples – this is what I expect from a solution.”

People-First Approach and Creative Strategies

Lottoland’s successful partnership with SEON can be attributed to a people-centric approach and a commitment to enhancing collaboration across various departments. By breaking down silos and promoting cross-departmental cooperation, teams from fraud, risk, marketing, operations, and customer success have developed innovative strategies for fraud prevention while prioritizing the customer experience.

Specifically, SEON’s insights have been instrumental in several key operations:

• Fraudulent Account Closures: SEON’s data supported the decision to shut down fraudulent user accounts, bolstering such actions with clear evidence of violations of Lottoland’s terms and conditions.
• Email Verification: To counter potentially fraudulent requests, suspicious emails were cross-checked on the SEON platform, which identified the email domain as newly created and flagged the email with a high-risk score. This action successfully thwarted phishing attempts.
• Complaint Resolution Enhancement: SEON’s data insights have also been creatively utilized to improve complaint resolution and verification processes.

By embracing SEON’s comprehensive anti-fraud capabilities, Lottoland successfully mitigated fraud risks while delivering exceptional experiences to its global customer base.

Ritchie: “Fraud itself is not just a problem for our analysts – it impacts all of us – and we collaborate with each other to ensure we propose the best solutions possible by taking a people-first approach.”

Enhancing The Customer Experience Through Strategic Collaboration

Lottoland’s partnership with SEON exemplifies the power of combining cutting-edge fraud prevention technology with a people-first approach. Through its commitment to collaboration, creativity, and customer-centricity, Lottoland has not only strengthened its fraud defenses but also improved operational efficiency and player satisfaction.

By prioritizing the customer journey and leveraging SEON’s advanced capabilities, Lottoland has set a benchmark for the industry in delivering secure and seamless experiences. As the company continues to grow and expand its offerings, its people-first approach and creative strategies will undoubtedly drive further success in the evolving online iGaming landscape.