Referral Programmes: The Basics
Online gaming portals are always looking to attract new customers. One powerful method involves referrals. After all, a new user is more likely to join a casino if his or her friend is an existing member. Furthermore, this type of referral engenders a sense of trust not often possible with standard promotional campaigns. Here is a quick breakdown of the steps normally associated with a referral package:
- A new player verifies an account.
- He or she is then sent a referral code by SMS or email.
- This code can be sent to another contact.
The individual who sends the initial code might also enjoy additional perks (such as free spins or bonus money). Meanwhile, the recipient is provided with a streamlined means to register with the casino in question. In other words, this strategy often represents a win-win scenario. However, there are also several potential risks that need to be mentioned. A handful of these will be discussed immediately below.
Self-Referrals
This is perhaps the most common situation, and it clearly violates existing compliance guidelines. Self-referrals are instances when an individual will create multiple email addresses. The goal here is to claim multiple referral rewards; using the emails as a means to conceal a single identity. If a player is suspected of performing self-referrals, his or her account will often be permanently revoked.
Referral Exploitation
There can be other times when referral codes are shared across third-party online platforms. Gaming forums, chat rooms, and social media circles such as Reddit are prime examples. Once again, the goal is to encourage others to use the same referral code to register with the casino in question. Not only is this blatant fraud, but the casino will likely detect the same code being used on multiple occasions. It is also relatively easy to trace the source of the code back to the player; once again resulting in a terminated account.
Referral Groups
This final example is somewhat more sophisticated than the others, and yet, it is also becoming more commonplace. Hackers have begun creating so-called “referral rings”. These organised groups function independently of one another, and the goal is simple. This type of collaboration intends to cross-reference members within the groups. Any rewards granted from fake referrals are thereafter distributed between members; similar to a typical casino prize pool. Referral rings can be more difficult to detect, as the attacks often occur simultaneously. By the time that fraud has been detected, the associated accounts would have (most likely) been deleted.
No Laughing Matter
Although this type of fraud may appear to be rather innocuous at first glance, it costs the casino industry a great deal of money each year. Furthermore, intentionally violating casino terms and conditions is considered to be a criminal act. If substantial profits are accrued as a result, the responsible individuals could also face serious charges. In other words, it pays to remain on the right side of the law.
Safety Tips
So, what steps can you take to ensure that you do not fall victim to one of the schemes outlined above? Consider the following practical suggestions:
- Never accept a referral from an unknown party.
- Even if you receive one from a friend, confirm that he or she sent the code.
- Examine the casino itself to ensure that it is licensed by a recognised regulatory body.
- If you have any additional doubts, contact a customer service representative before opening an account.
When used appropriately, refer-a-friend programmes are great ways to make the most out of what the online gaming sector has to offer. Still, remember that instances of fraud are on the rise. Remaining compliant will protect your personal details, and ensure a rewarding experience.
