SBC News Voice of the Sports Betting Industry
Spanish authorities and financial institutions have once again been urged to remain vigilant against identity theft and fraud linked to gambling transactions.
The Directorate General for the Regulation of Gambling (DGOJ) in Spain has re-issued its warning concerning the risks of identity theft, first made at the beginning of the year.
The Directorate continues to receive complaints relating to identity theft in connection with fines issued to residents who were not in control of the accounts in question.
The problem stems from criminals exploiting the ID verification requirements of Spanish-licensed online gambling platforms and their payment processing systems.
As reported, Spain’s Ministry of Consumer Affairs recorded 7,700 incidents of identity theft last year related to online gambling and associated payment processing liabilities.
“Current regulations do not require that the payment method be personal or personalised. This opens the door to the use of fake or third-party accounts to divert money,” explained Mikel Arana, Director General of the DGOJ.
“In 90 percent of cases, the scams were linked to sports betting,” Arana revealed. “In most cases, the victims are unaware until the Treasury demands taxes from them for supposed winnings they never received. By that point, the damage is already done.”
For this reason, the DGOJ recommends requesting a certificate of activity from betting operators, requesting the closure of fraudulent accounts, and submitting all relevant documentation to the Tax Agency after reporting the incidents.
Closing ID loopholes
In February, the Spanish regulator had already issued its warnings on identity theft and announced its intention to prepare a report jointly with the State Tax Administration Agency (AEAT) and the State Security Forces.
Of particular concern, Spain’s tax agency PACS revealed that nearly 5% of all individuals who won more than €100 through online gaming had been victims of identity theft.
Impersonation via ID theft has emerged as a new liability for the AEAT , following the introduction of updated income tax requirements. Under the revised rules, Spanish taxpayers earning over €22,000 annually must now declare gambling winnings of €300 or more—a significant reduction from the previous disclosure threshold of €1,000.
In addition, the Directorate has warned platform operators that hackers are using advanced technologies to avoid detection—such as e-wallets and bank cards—and are displaying gaming behaviours that differ significantly from those of legitimate users, such as placing a higher number of bets and playing for extended periods each d
