Cryptocurrency has been an ongoing trend lately, and as a result, crypto gambling scams have become too predominant. Starting from Bitcoin to Ethereum, more and more cryptocurrencies are being launched, and large industries are subscribing to using this payment method.
Currently, we can see that different gambling sites are accepting cryptocurrency payments from users. Therefore, if you like to invest in online gambling, you can make payments and withdrawals efficiently through crypto. However, before you go ahead and start playing, it is essential to know the risks that are involved in the process.
In this article, you will find all the details about spotting a crypto gambling scam so that you can protect yourself and your hard-earned money.
What Are Crypto Gambling Scams?
Crypto gambling scams can be anything that tricks the user into spending their money through cryptocurrency while gambling.
The gambling industry was always considered a cradle for notorious scams. However, several fraudulent members have carried out infamous and elaborate schemes in different casinos worldwide in the past few years.
Most Notorious Offline Casino Gambling Scam
One of the most commonly known casino scams includes the Baccarat False Shuffle, which caused as much as $100 million loss for offline casinos. Though this scam occurred in an offline casino, however, this can happen in online casinos also where you are providing your personal details.
But ever since the advent of different online casinos, financial losses aren't just the only concern of users.
Due to the use of cryptocurrency in the betting industry, we have seen that the stakes are higher now than ever. According to reports, around 26% of online casino sign-ups are fraudulent. As a result, thousands of enthusiastic gamblers risk losing their money.
Unfortunately, Crypto gambling scams have become pretty common these days, with more and more frauds coming into the limelight.
There are different scams in the crypto industry, from online sign-ups to fake deposits for availing bonuses. You must be aware of the gambling industry's fraudulent activities and scams.
The Risks of Online Crypto Gambling
Cryptocurrencies are no doubt one of the most significant investments to make at the moment. After all, having a digital form of currency is undoubtedly beneficial. What do you think?
However, cryptocurrencies don't just have advantages. There are some disadvantages as well. For example, cryptocurrency is far more dangerous compared to traditional currencies and channels in terms of fraudulent activities.
1. Lack of protection and insurance options:
Credit companies don't have a role in cryptocurrency. So if there is a case of loss or theft, users have no way to get their money back.
2. Loss or theft:
You have no way to get your money back. For example, if a cybercriminal were to get access to your account, they could clear out your entire bank balance. Furthermore, cryptocurrency transactions are primarily anonymous. So, there is no scope for tracing the tracking in case of theft.
So, one moment you are signing up at an Ethereum casino, and the next moment you can lose your entire life savings.
3. Fluctuating exchange rate:
Bitcoin was the first cryptocurrency to be used for crypto gambling and it paved the way for the use of other cryptocurrencies in the market area. However, the prices of cryptocurrencies are subject to tremendous changes with time. So, that leads to fluctuating exchange rates which can make it difficult for players to determine the true value of their winnings.
The crypto market is very high in terms of volatility. So, with the high volatility, the risk increases for players as the value of the cryptocurrency can rise or fall at any time. Since it is a highly volatile field, it can be difficult for you to determine what token to use.
5. No regulations:
Most crypto-gambling sites don’t have any regulations for the use of tokens. While sometimes that can be a good thing, if the price value decreases for the crypto token, it might lead you to a huge loss.
So, in this complex world that we live in, it is essential to gain all information before you start using cryptocurrencies on gambling sites.
You must inform yourself before signing up for any gambling site because it might be fraudulent. From carefully assessing the terms and conditions of the casino you choose to understanding all the security terms and guarantees, you need to prepare yourself before investing.
Examples of Crypto Gambling Scams
While there might be many unreported cases of crypto gambling scams since there is no way to criminalize those who scam players, there are some reports that we have found. These are somehow related to the crypto gambling and scamming industry.
Twitch Community Scam
In September 2022, a UK-based streamer called 'ItsSliker' claimed to have duped his peers and members of the Twitch community due to his crypto-gambling addiction.
First, ItsSliker tricked many people into sending him more than $200,000. Then, he would approach other Twitch streamers and tell them his account was blocked and he needed some money.
However, the streamer soon confessed to his crypto-gambling addiction, prompting him to take such a step.
ItsSliker had a lot of crypto gambling debts that he had to pay off, so he asked for the support of many known Twitch streamers, including Ludwig Ahlgren, Mizkif, Lukeafkfan, and Trainwreck.
One of the Twitch streamers even donated about $45,000 to ItsSliker's account after hearing about his problems. xQc was deemed the most-watched streamer on the platform, and Twitch vowed to help ItsSliker repay the lost money.
Twitch To Ban Crypto Gambling Sites
After the streamer confessed his addiction and his supposed fraud, several other Twitch community members demanded that Twitch ban the crypto gambling sponsors that tend to provide money to these unsuspecting streamers for their online casinos.
Shady Crypto Gambling Sites Are Increasing
There have also been some reports about US-based Twitch streamers raking off millions in shady cryptocurrency gambling streams even though the activity is banned in the United States of America.
Twitch streamers would take the money from the sponsors and stream themselves live, betting on gambling sites. This can be seen as a negative influence on the viewers since they will be tempted to risk their hard-earned money.
Besides that, indulging in something banned in a particular country doesn't send a positive message, right?
So, all these cases beg the question. Is crypto gambling safe, or are there dangers beyond our thinking?
Are Crypto Gambling Sites Regulated?
Most of the crypto casinos tend to have a gambling license. However, according to the reports, these licenses aren't issued by some of the most reputable authorities in the gambling world.
For example, institutions such as the Malta Gaming Authority or the UK Gambling Authorities have nothing to do with most gambling sites.
Instead, most crypto casinos and gambling sites are licensed under the Curacao Gaming Authority, a former Dutch Colony in the Caribbean.
One of the main problems of the Curacao Gaming Authority is that it is not very strict about casinos. And that is one of the main reasons why it hasn't provided different player protection mechanisms like the other gambling regulators that are reputable and reliable.
Anonymous or Traditional Casinos: Are Crypto Gambling Sites Safe?
The online casinos that take full advantage of the anonymous nature of the cryptocurrencies are very high in number. These casinos tend to allow you to gamble anonymously. You don't have to add your personal information when creating an account.
While some might think that it is a good thing, others might disagree with it. Some casinos have a fairer approach to gambling. While external rules might not bind these sites, they tend to have better prospects for the players and the fairground.
However, some casinos aren't very fair and scam people. But that is something that can be said in the case of traditional land-based casinos as well. Plenty of them are also scamming people, so you must be careful where you play.
There are many traditional casinos on the market backed up by reputable companies. These casinos would treat you well and provide all the comforting features, with no risk of getting scammed.
Other traditional casinos are unscrupulous and try to scam the users out of their hard-earned money. They have predatory rules to the terms and conditions. They are also looking for unfair reasons to void your winnings.
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Hence, you need to make sure that you do not affiliate with such organizations and casinos that claim to promote gambling but provide unfair means for people to scam others.
Are Crypto Casinos Fair?
Some are, some are not. To ensure that goal is achieved, the crypto casinos that use blockchain will also use a proper and fair algorithm for the players. However, this is something that is most common in licensed casinos.
They have proper terms and conditions, better wagering requirements, trusted payouts, and other benefits. However, you need to take care that you are placing your bets on the right casino to save yourself from scammers all around the online world of crypto gambling.
When we talk about cryptocurrency casinos, it can be said that the operation of the casino is provably fair. In a fair casino, players from all over the world can personally and manually verify the fairness of the games they tend to play online.
What Is Provably Fair?
Provably Fair is best defined as a method that allows you to not only immediately verify the authenticity of games, but to do so independently. Every game you play is absolutely fair, and if you want to verify this, you can do so by clicking the "Provably Fair" button. After entering the necessary information, the verifiable proof will then be made available to you.
In simpler words, Provably Fair is used in the Bitcoin gambling industry and is the only possible method to ensure that no one can cheat – neither the online gambling platform nor the player. It can, therefore, already be safely predicted that this will become the norm for all casino sites; making it the future of online gaming.
Signs That A Cryptocurrency Gambling Fraud is Underway
Some of the most common frauds take place in the online gambling industry. From crypto frauds to phishing scams, so many different fraudulent activities occur. So, how can one decide whether a cryptocurrency scam is going on? Well, some signs can let a user know. So, seeing these signs while browsing a gambling site is probably a scam.
The Site Looks Fake:
There are so many different online gambling sites that seem proper and legitimate. But not all of them are the same. Some sites have a different layout that is not similar to the common options. So, you need to carefully access the site before signing up.
The Site Requests Too Many Details:
When you sign up with a gambling website, they only ask you to provide your mobile number and email address. However, some sites ask for many details, such as social security numbers. Beware of such sites because they might be a scam.
Have you ever seen something that looks too good to be true? Well, there is a chance that it is.
While most gambling sites offer reasonable bonuses with some wagering requirements, others require no terms and conditions to be fulfilled.
Have you heard about Bitcoin casino no deposit bonus? While some casinos tend to offer no-deposit bonuses, it is not a very common thing. If you come across any gambling site offering a much higher bonus, steer clear of that side.
Have you ever found some links that claim to take you to a reliable gambling site where you can bet with cryptocurrency?
Well, if you have, then that was probably a scam.
Unfortunately, most websites these days have links from reputable websites and don't take help from other outsourced options. So, make sure that you keep this in mind.
Read the reviews given by real players just like you on CasinoFreak before signing up for a casino.
Winnings Are Not Paid:
Say that you have won a large amount of money and want to cash out your winnings. Are you not able to do so? Well, there might be a chance that the website is fake and your account is being hacked.
Some gambling sites post legit advertisements that are believable enough to trick even the most careful users. So before you go ahead and sign up with a website, ensure you gather all information about it to save yourself from getting scammed.
Most well-known gambling sites and casinos will give you the payment of winnings within a few minutes, depending on the choice of payment. However, if you see that there is a delay in getting the payment of your winnings, there is a chance that you are getting scammed.
Casinos often have a reputation for being rigged when it comes to the games. However, in the case of online casinos, the possibilities can be much higher.
How To Protect Yourself From Crypto Gambling Frauds
The scams related to cryptocurrency are on the increase for sure.
However, to save yourself from fraudulent activities, there are some options that you can use for sure.
Here we have some essential tips that are going to help you when it comes to identifying and avoiding crypto gambling scams in the first place.
Never become too confident regarding any site’s credibility. Responsible playing is something that as a player you must follow.
- Proper research: Make sure that you do adequate research before you go ahead and sign up with an online casino. These days, most online casinos and gambling sites tend to have apps. So, you need to check the URL of the casino properly. You can also read some reviews and compare all the different types of casinos to find the one that is trustworthy and will provide excellent customer support.
- Reasonable bonuses: Another essential thing you must remember is that most casinos have reasonable bonuses and rewards for users. Therefore, you must avoid the casinos that provide bonus offers too good to be true. It might be a scam, and you don't want to invest your money there.
- Don't give too much personal info: As users, we are asked to sign up with the gambling website or online casino we are about to join. However, most casinos don't ask for many details about the user's personal information. So, you need to be careful not to provide many details about your personal life, such as a social security number or bank details. Only provide your information if you are sure the casino is safe.
- Read Terms and Conditions: Make sure you don't deposit any amount into a casino without correctly reading all the terms and conditions of the bonus wagering and more. It can be a potential red flag if you don't find any particular terms and conditions related to the bonus.
- Transact carefully: Before you go ahead and make any transaction, whether a withdrawal or a deposit, make sure that you check all the transaction details at least twice, just to be certain. Ensure you put the address correctly and the wallet ID where you will get the money. Many phishing scams can take place if you don't check properly.
- Screenshots are a must-have: Make sure you have all the screenshots for the transactions you make in case you need to claim in the future.
- Use a digital wallet: In general, when dealing with cryptocurrency, ensure you keep all the coins in that digital wallet that you can access privately. While many different online wallet services are available, this is a safe option.
However, depending on several factors mentioned before, we have created a list of blacklisted casinos. To keep yourself safe from online casino scams, you can check this list and start playing online casinos.
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