DES MOINES – A new study identifies Iowa residents are susceptible to a rise in online gaming and gambling scams, based on FTC scam reports made earlier this year.
This comes after the Better Business Bureau found complaints about online gambling have more than doubled since 2023, with users affected by malfunctioning slot games, wager adjustments, deceptive ads, and email phishing attempts.
Video game experts Chicks Gold analyzed Q2 reports made to the Federal Trade Commission (FTC) to reveal the total sum lost across the scam types most associated with fake gambling and gaming sites: malware and exploits, online shopping, tech support, social networking, and prizes, sweepstakes, and lotteries.
Nationally, across these scam subcategories, consumers made a total of 106,531 reports that resulted in a cumulative loss of $191,964,096 between the start of April and the end of June this year. This equates to $1,965 stolen per report.
In Iowa, 851 reports made over the three-month period resulted in a total loss of $1,701,547, or $1,999 per report. This is 2% above the national average ($1,965).
Al Alof, spokesperson for the study, explained: “We analyzed the total and per-report losses for these scam subcategories because of their strong links to fake online gaming or gambling sites. Malware and exploits come into play if a fake casino site prompts you to download something that’s actually malicious, or when the promise of ‘free mods’ or ‘cheat tools’ disguises spyware designed to steal personal details.
“Online shopping scams appear when fake sites sell in-game items, currency, or VIP memberships that never materialize, while tech support scams may surface as intrusive pop-ups or fake help desks that convince players to share credentials.
“Social networking scams are among the most sinister, as they thrive on community, which is widely encouraged in online gaming spheres. Scammers may create fake accounts or hijack other players’ profiles to distribute phishing links. Finally, prizes, sweepstakes, and lottery scams could see consumers lured with fake jackpots or loot boxes that require an upfront payment or personal data to claim.”
The most prevalent scam type in Iowa was found to be tech support, resulting in $734,014 lost across 91 reports, equivalent to a per-report loss of $8,066. Overall, Iowa ranked 16th in the state ranking of per-report loss linked to fake gambling and gaming sites.
Al Alof, CEO of Chicks Gold and study spokesperson, warned consumers:
“With the 2025 NFL regular season underway, we’re likely to see a sharp rise in fake gambling and gaming sites, as scammers capitalize on increased betting activity. The NFL is the most bet-on sport in the U.S., and scammers know there’s likely to be a surge in inexperienced bettors searching online for wagering platforms – which makes them susceptible to fake sportsbooks or ‘too good to be true’ offers.
“Traditional gamers in Iowa also aren’t safe; although they may not be as interested in sports betting, they can also be targeted by scammers looking to capitalize on a major game drop. A good example of this is the recent Hollow Knight: Silksong release, which saw online gaming stores crash due to demand. If players are unable to access a hyped-up game, they’re more likely to hunt for alternative download links or turn to social media sites for updates, where scammers may slip malicious links disguised as early access or fixes.”
The expert shares tips to avoid falling victim to fake gambling or gaming sites:
- Check licensing and official URLs. Legitimate sportsbooks are licensed by state authorities, so always verify with your state gaming commission. Be wary of sites with slightly misspelled names or unusual domains, and stick to official stores like Steam or the Nintendo eShop when downloading games.
- Avoid ‘too good to be true’ offers. Fake gambling sites lure players with huge bonuses or guaranteed wins – don’t fall for these unless verified by an official provider. If a site asks for payment or personal details before letting you play or claim a prize, this is a red flag and you should not engage.
- Use two-factor verification for payments. Use credit cards or PayPal rather than transfers or gift cards when making payments, as these are hard to recover if they’re fraudulent. Enable two-factor authentication for gaming accounts and betting platforms and never share your login credentials.
Total reports and losses were compiled from Q2 2025 across the following categories – malware and computer exploits, online shopping, tech support scams, social networking, and prizes, sweepstakes, and lotteries. The total reports/losses were then compared to calculate the average loss per scam report.