Jake wanted to place his bets during this year's March Madness, so he took to the internet and started searching for betting providers. He found one website that was pretty good: they were newly established this year, but they offered 100% guaranteed returns. Jake signed up and placed his bets. The first go-around he was able to cash out, but once he started placing more bets, he wasn't able to withdraw his money so easily. If he wasn't coming across a delay in payment processing, or a technical issue, the platform started to request more money in order to withdraw his winnings. Jake was getting frustrated, so he started looking into the platform further. He found a safe betting website that listed online sportsbooks to avoid. Turns out that he had been placing bets on a well-known scamming site that now also had access to his personal information.
Did you spot the red flags?
- Jake's betting site offered a guaranteed return. Any promise of 100% guaranteed, or risk-free, is a too-good-to-be-true red flag.
- Jake's betting site was new to the industry. Many sports betting scam operations pop up suddenly, take your money, and disappear. In some cases, longevity can help identify legitimacy.
- Jake did his research at the wrong end of the process. He should have reviewed the site first, before offering up his money and personal information.
What you should know about this scam
Do your research! Check reviews and comments on betting providers before going all in. You can also look on trusted platforms for a list of safe and legitimate online betting locations.
Betting sites are meant to look flashy and enticing. But don't let looks fool you. Scammers are trying to make their sites look legitimate too, and they have the funding to do so.
During the month of August in 2020, sports betting generated $2.1 billion dollars in revenue in the US, alone. While popularity soars around online sports gambling, scammers have been taking notice and taking advantage of this booming online industry.