European Commission study says adverts featured in 99% of reviewed gambling scams

Online advertising was involved in 99% of the reviewed gambling-related scam cases examined by Debunk.org, according to a European Commission study on financial scams. The study, titled Support contract on financial scams study, examines how digital platforms are used to reach users, promote fraudulent offers and prompt payments or the sharing of financial information. The figure covers the cases Debunk.org analysed and is not an estimate of all gambling fraud in the market, the study said.

According to the research cited in the study, fraudsters create pages on online platforms and immediately publish adverts, including campaigns aimed at users in different countries and languages. Paid advertising is identified as one of the main channels for spreading gambling-related scams. Campaigns can use manipulated content, invented news and imitations of known brands to appear credible and lead users to fraudulent sites.

The study also flags the international reach of campaigns. Platform advertising systems can allow unlicensed gambling operators to promote their services illegally in countries where they lack the necessary authorisations, and without adequate checks on advertisers' eligibility users can be directed to unregulated platforms, according to the study. It also reports counterfeit gambling applications in official app stores, where the reputation of the distribution channel can make services appear trustworthy when they are not.

Deepfakes and content generated by artificial intelligence are among the tools the study says make campaigns more sophisticated. According to the report, fraudsters can produce manipulated videos imitating public figures, politicians or entrepreneurs to promote fraudulent gambling services, false investment platforms or cryptocurrency schemes. The same technique can be used to construct fake news reports or simulate a product endorsement by well-known people, the study said. Artificial intelligence also lowers the cost of producing deceptive content and allows campaigns to be multiplied quickly, making them harder to detect and counter in time, according to the report.

The study examines controls adopted by major digital services to limit the spread of advertising fraud. Google, LinkedIn, Pinterest and TikTok apply restrictions or certification requirements to advertising categories considered high-risk, including gambling. Apple can require evidence of authorisations or licences for the promotion of certain categories of applications, including gambling. The platforms also use automated advert review systems, human checks and user reporting mechanisms, although procedures and the level of verification vary between services, according to the study.

The study concludes that consumer protection in online gambling also depends on the ability of digital platforms to prevent their advertising infrastructure from being used to promote fraudulent or unauthorised services. It calls for preventive checks, rapid action on illegal content and greater cooperation between platforms and the competent authorities.