Platinum Gaming Hit with £1.6 Million Fine After Fraudster Dupes Security Team

Platinum Gaming, the company behind Unibet, will pay a £1.6 million settlement package after a convicted fraudster used its services.

Platinum Gaming UKGC fine

Platinum Gaming pays £1.6 million to the UKGC after failing to stop a fraudster game the system. (Image: Gambling Commission)

Owned by the Kindred Group and holding the licence for Unibet’s operations, Platinum Gaming is a major player in Europe. However, despite its size and experience, it failed to carry out the necessary security checks on a rogue customer.

Platinum Gaming Misses Fraudulent Bets

Following reports of suspicious activity, the UK Gambling Commission (UKGC) launched an investigation. Reviewing the account of an unnamed player, the regulator found the person in question was a convicted fraudster.

In tandem with a criminal record, the customer was able to spend £629,420 on Unibet without being questioned. As per the UKGC’s report, the deposits and losses were “so significant” that Platinum Gaming should have been cautious.

However, instead of asking for proof of income and where the money came from, it allowed the customer to continue betting. It wasn’t until the UKGC stepped in that the money was found to be stolen.

As a result, Platinum Gaming is guilty of breaching anti-money laundering regulations.

This is yet another example of us taking firm action against online operators who fail to protect consumers or implement effective safeguards against money laundering,” UKGC executive director Richard Watson said on June 13.

For its security failings, the company will return £629,420 to the fraudster’s victims. Additionally, Platinum Gaming will pay £990,200 in lieu of a financial penalty.

UKGC Demanding Excellence in All Areas

Concluding his summary of the case, Watson reiterated the UKGC’s tough stance on regulatory failures.

Indeed, in recent days, Gamesys was fined £1.2 million for a similar failing. Beyond that, National Lottery operator Camelot was hit with a £3 million fine after paying out a fraudulent claim.

For Platinum Gaming, the incident will come as a financial blow. However, more significantly, it calls into question Kindred’s artificial intelligence (AI) project.

In 2018, Kindred partnered with BetBuddy and City University to publish a paper on AI and anti-fraud measures. The paper was the first stage of a three-part strategy designed to explore the uses of machine learning in tackling fraud.

Although the idea is still in its infancy, the latest breach suggests any measures currently in testing could be in need of work. Indeed, with the UKGC coming down hard on any infractions, Kindred nor its subsidiaries can afford any more operational oversights.

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