Online betting scams on the rise during March Madness

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March Madness is in full swing in the US. The NCAA Basketball Tournament, which runs from 16 March to 7 April, is predicted to generate over US$3 billion in wagers, according to the American Gaming Association, an increase from last year’s $2.7 billion.

Yet, in tandem with the increase in wagers, experts have warned about fake betting websites that take advantage of sports fans. With sports wagering platforms becoming ever easier to access in the US, the number of fraudulent betting sites targeting families across the US has also risen.

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In 2023, credit reporting agency TransUnion revealed that online gaming platforms were the most associated with suspected digital fraud, flagging up to 11% of digital transactions.

Kevin Gosschalk, Chief Executive of cybersecurity firm Arkose Labs, explained that March Madness is a prime time for scam websites that promise users can win real money by placing bets.

“We’re in March Madness, so it’s peak season for scams, fake websites, and fake apps being set up to lure you to put money into them, claiming you’re going to win big. And then of course it’s a rug pull — there’s no money to be gained,” Gosschalk said.

According to Gosschalk, sites that are unlicensed and unregulated are best avoided. “If you’re intending to gamble, go with the well-known sport websites, the ones that you see on TV, the ones that you see advertising in media. Those are most likely to be legitimate websites.”