Criminals are using AI Deepfakes, face-swapping technology, and advanced AI to bypass Anti-Money Laundering (AML) and Know Your Customer (KYC) compliance checks and use online casinos for vast money-laundering projects.

The UK Gambling Commission has advised all its member casinos to beef up their security measures and train staff to recognize signs of AI-produced documents and videos. It warns that criminals are using the latest tech to beat the checks and turn the top online casinos into unwitting accessories to industrial-scale money laundering.

According to the British gaming authority, criminals are playing games like Crash, where cashing out quickly after limited gameplay is almost the norm.  It has advised all its member casinos to pay particular attention to Crash and other arcade games and implement stronger procedures to flag suspicious activity.

“There are concerns that products of this nature can allow criminals to camouflage the high-risk behavior of cashing out quickly with limited gameplay within the context of the crash game and that transactional monitoring controls may not detect suspicious activity,” the Commission stated.

Stolen crypto is also a hot topic, as much of it passes through the best crypto casinos in an attempt to launder electronic money. The UKGC advised all casinos, whether they work in crypto or fiat currency, to abandon any open-loop payment systems and opt for a closed loop instead.

This simply means that the wallet or card you use to deposit with is the one you must withdraw to, as criminals can launder money easily by making a large deposit from one wallet or card and then withdrawing to another.

Casinos have introduced increasingly demanding requirements in a bid to comply with the AML and Know Your Customer requirements of their various licensing bodies. Some of the top crypto casinos have infuriated their customers by asking for identification, proof of address, and, increasingly, a selfie or video with a script. Now, it seems, even that might not be enough.