Artificial intelligence is reshaping online gambling fraud across the Asia Pacific region, with criminals increasingly targeting verified accounts rather than attempting to bypass initial registration checks.
According to Sumsub’s iGaming Fraud Report 2026, suspicious activity across the global online gambling industry increased 4.5 times between the first quarter of 2025 and the first quarter of 2026. The average value of suspicious transactions also rose from US$3,960 to approximately US$6,500, indicating fraudsters are targeting higher-value accounts.
Fraud Moves Beyond KYC
The report found that 76% of fraud cases in Asia Pacific now occur after Know Your Customer (KYC) verification, highlighting a shift toward attacks on verified accounts through tactics such as money muling, bonus abuse, and synthetic identities.
Despite the growing sophistication of attacks, APAC’s fraud rate fell by 45%, from 3.49% in 2024 to 1.92% in the first quarter of 2026. Sumsub attributed the improvement to stricter regulatory requirements in markets including the Philippines, Australia, Macau, and New Zealand, although the regional fraud rate remains above the global average of 1.53%.
Deepfakes and AI Become Key Threats
Cambodia, American Samoa, Singapore, South Korea, Bangladesh, and Japan recorded the highest fraud rates in the region.
The report found that 66.15% of fraud cases involved selfie fraud or deepfake technology, while criminals increasingly relied on AI-generated documents, face-swapping, account farms, proxy networks, and automated bots to bypass verification systems.
Continuous Monitoring Becomes Essential
Sumsub said traditional onboarding checks are no longer sufficient as fraud becomes more sophisticated.
The company recommends operators adopt continuous identity monitoring throughout the customer lifecycle, combining identity verification with device, IP address, email, phone number, and fraud intelligence to strengthen risk assessment and detect suspicious activity beyond the initial verification process.
