How FanDuel shuts out fraud without turning real customers away
FanDuel, a regulated sports betting operator serving customers across U.S. states and Canada, uses Incode to verify every new customer at sign-up. Each person completes one automated identity verification check, a document scan and a live selfie matched to government records, tuned to the rules of the market they join. FanDuel reports around 46% fewer customers wrongly blocked at sign-up, with no rise in fraud.
fewer customers wrongly blocked at sign-up, with no rise in fraud
more genuine customers approved on high-volume flows
the fraud-ring pattern Incode's collective intelligence exposed
Regulated betting, played across a continent
FanDuel is a regulated sports betting operator serving customers across U.S. states and Canada.
Every market sets its own rules for opening an account, and every new customer passes through the same front door: identity verification at sign-up.
Every new customer enters through identity verification at sign-up, so the accuracy of that single check decides how well FanDuel meets each market's rules and how many real customers it lets in. That is the role Incode plays across every U.S. state and Canada.
Fraud and lost customers collide at sign-up
Regulated betting must verify every new customer at sign-up, under rules that change with each U.S. state and again in Canada.
The collision plays out three ways:
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01
Stolen identities pass data checks
In one federal case, two people used about 3,000 stolen identities to defraud FanDuel and other operators of roughly $3 million. Data-only checks cannot stop someone who has bought the data.
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02
Organized rings farm the promotions
The same pattern shows up as rings: one real face reused across dozens of invented names and devices to farm promotions and drain accounts.
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03
Rules that block real customers
Rules strict enough to stop fraud also blocked real people, costly when each customer is worth so much.
FanDuel needed one check strict enough to stop organized fraud and forgiving enough to let every real customer in.
How FanDuel verifies every customer
Every new customer passes one automated check, tuned to the rules of the market they sign up in.
Biometric identity at sign-up
Identity Verification
A document scan and a live selfie prove a real, present person, not a stolen identity passing a data check.
Matched to government records
GovMatch
The ID and face are checked against government sources in each market, keeping FanDuel fully compliant in every state and in Canada as the rules change.
Risk AI Agent decides each case
Risk AI Agent
Risk AI Agent replaces hand-tuned pass/fail rules with a model that weighs every signal. It clears low-risk people the old rules wrongly rejected, still hard-fails what must never pass (underage, expired, or voided IDs), and shows the reason for each call.
Collective intelligence exposes the rings
Incode's collective intelligence solution links accounts by shared face and device, exposing rings where one person is behind dozens of identities that each pass verification on their own.
More real customers get in, fraud stays flat, and the rings that beat one-by-one checks are exposed.
How it works
Strict where it must be, forgiving where it can be
Tuned to every market
Every U.S. state and Canada sets its own onboarding rules, and the same automated check adapts to each.
Hard lines never move
Whatever the model weighs, underage, expired, and voided IDs always fail.
Every decision explained
Risk AI Agent shows the reason behind each approval and rejection.
Privacy is the architecture
Incode made privacy a founding conviction long before regulation or the market asked for it. Its AI-first identity verification reduces fraud while remaining private and compliant.
Testimonial
“Stolen data sails through a data check, because nothing about it is fake. Biometric verification asks a question stolen data can't answer, and that's exactly where the fraud stopped.”
Product Manager · FanDuel
Frequently asked questions
Questions specific to the FanDuel story
Still have questions? Talk to an expertHow does FanDuel verify new customers at sign-up?
Each new customer completes a single automated check in which a document scan and a live selfie confirm that a real person is actually present, and the check is adjusted to the rules of whichever market they sign up in.
How does FanDuel stay compliant across U.S. states and Canada?
GovMatch verifies the ID and face against government records in whichever market the customer joins, which keeps FanDuel compliant as every state and Canada revises its rules.
Why were data-only identity checks not enough for FanDuel?
Stolen personal data is real data, so it passes a check that looks at data alone. In one federal case, about 3,000 stolen identities were used to defraud FanDuel and other operators of roughly $3 million.
How does FanDuel detect organized fraud rings?
Incode's collective intelligence connects accounts that share a face or a device, revealing rings where one person operates dozens of identities that each look legitimate on their own, including a single face behind more than 50 names.
How does Risk AI Agent decide each case?
Rather than fixed pass or fail rules, a model considers every signal together, approving low-risk customers the old rules turned away and documenting the reason for each outcome.
Can an underage, expired, or voided ID ever be approved?
No. Those IDs are hard-failed in every case, regardless of how the model weighs the other signals in the file.
What results has FanDuel reported?
Roughly 46% fewer customers wrongly blocked at sign-up with no increase in fraud, and about 1% more genuine customers approved on high-volume flows.
What's next
See how Incode secures betting onboarding
Approve real customers in seconds and stop organized fraud at the same door, in every market you operate.