Interviews
Exclusive Q&A with Kevin Gosschalk, CEO of Arkose Labs
Arkose Labs has carved a niche for itself in the online fraud-fighting front by launching something that nobody has done before: by offering financial guarantee against credential stuffing attacks for the users of its security system.
Kevin Gosschalk, CEO of Arkose Labs, talks here about this confident initiative. He says this move stems from his belief that “security vendors should stand behind their products and services in a real, tangible way.”
He also offers his insights about the impact of credential stuffing in general and specifically in gambling and gaming industry.
Read on for his forthright and succinct views on fighting online frauds and a host of related topics.
Q. Let’s start with a quick introduction of yourself. Could you tell us about your education, career and interests?
A. I am a native of Brisbane, Australia — born and raised –and graduated from the Queensland University of Technology (QUT) with a degree in Interactive Entertainment. Prior to founding Arkose Labs, I worked in biomedical research where I used machine vision technology for the early detection of diabetes. I later developed technology that assisted adults with intellectual differences in social settings. I believe my unique background brings a bit of a unique mindset to fighting fraud.
Q. How do you look back to the days of founding Arkose Labs? What was the vision when founding Arkose Labs?
A. The original vision was an ambitious one, but one I believe we can achieve: to make the internet safe for all good users. Online fraud is the biggest issue facing businesses and consumers today. I didn’t have a background in the fraud industry prior to starting Arkose Labs, but experienced these issues as a user of the internet. We want to be aggressive in fighting fraud and eliminate it rather than mitigate it. In the 5 years since the company started, we have made great strides in achieving our goal. We grew from a two-person startup in Brisbane to a company that now employs hundreds with offices in multiple continents. We also just closed our biggest quarter ever. The company has been on a great growth trajectory.
Q. Do you think credential stuffing is going to become one of the biggest financial threats for online businesses? Do share the reasons if you think so?
A. We believe it already is one of the biggest threats to online businesses today. This is because they are simple attacks to carry out, but the potential financial motivation is very high. There is an organised, underground cybercrime ecosystem that provides cheap and easy access to freshly stolen data and the latest automated tools, allowing fraudsters to attack enterprises at scale.
The low barrier to entry means that only a small percentage of these attempts have to be successful to turn a profit. Once they have compromised an account, attackers have many different ways to monetize it. They can steal money directly from the account, resell accounts or personal information, use the account to launder money, and much more.
Q. Are gambling and gaming industry particularly vulnerable to credential stuffing? Our readers would be eager to hear your insights into this.
A. Yes, the gambling and online gaming industry is a high target for credential stuffing attacks. One reason for this is that they are usually linked with a bank account or payment mechanism, so fraudsters look to compromise these accounts to gain access to that information. A compromised account can also be used to launder stolen money. Unlike bank accounts, these accounts are generally less protected; users may not have two-factor authentication enabled as they would on a financial account, for example. Online gambling is becoming more popular by the day, which means there is an ever-increasing amount of accounts for fraudsters to target.
Q. Arkose Labs is the first and perhaps the only company that offers a financial guarantee against credential stuffing attacks? Could you tell us the thought process behind such an unprecedented offer?
A. We believe security vendors should stand behind their products and services in a real, tangible way. Companies count on us to protect their most valuable data and keep their platforms safe from account compromises. We launched this warranty to show we are a true partner with our clients and we are putting our money where our mouth is. We feel offering such a warranty gives clients peace of mind that 24/7, we are there to help them defend against evolving attacks. This warranty provides commercial assurance that Arkose Labs will deliver the most robust protection against credential stuffing attacks available on the market today. It includes up to $1 million recoverable for covered losses and a 48-hour remediation SLA (service level guarantee). We do this in a user-centric way, without impacting good consumers’ experience.
Q. From the outside, the credential stuffing guarantee appears an incredibly brave move. How confident are you in your technology and processes?
A. We are incredibly confident. We would not have launched this warranty if we did not believe we could back what we say. We have years of experience protecting some of the largest, global enterprises from credential stuffing attacks.
Q. Have the credential stuffing attacks intensified on your systems after the warranty? How was the response from the hackers and ransomware attackers towards the announcement?
A. We have not seen any noticeable increase in attack intensity due to the warranty announcement. There is always a constant stream of attacks that we protect clients from. We do see a seasonality increase in attack intensity during Q4 and we anticipate heightened attacks during the holiday season.
Q. What are the systems and technologies Arkose Labs has developed to prevent the credential stuffing attacks? Could you talk about the journey through the technology development?
A. The Arkose Labs platform performs sophisticated real-time analysis of traffic to look for even the most subtle indicators of fraud. However, this is done without collecting large sets of personal information, as they can cause a privacy and compliance headache. Instead, the platform focuses on behavior, device, and network characteristics and how they are connected
Arkose Labs classifies and segments traffic based on the risk profile. Triaging traffic, based on whether it is likely to be legitimate, a bot, or human fraudster, provides actionable intelligence that can inform the system of any secondary screening required.
So the platform combines risk assessments with challenges, by leveraging a continuous feedback loop to improve fraud detection rates, while decreasing challenge rates for good users. Embedded machine learning will provide advanced anomaly detection and evolving protection, taking the burden away from in-house teams.
Q. Let’s shift the focus to the effect of the pandemic, lockdown and work-from-home on ransomware and credential stuffing attacks? What were the trends of online frauds during the Covid-19 days?
A. Not surprisingly, online fraud spiked during the height of the pandemic and related lockdowns. Since so many more people were online, to buy everything from toilet paper to cars and everything in between, there were many more targets for fraudsters to take advantage of. Furthermore, with massively increased traffic levels, it was easier for fraudsters to “blend in” with food traffic. Even as we are slowly moving past the pandemic, consumer digital habits acquired during the time have become permanent, and as such we are seeing permanently higher levels of digital traffic as well as fraud attacks targeting digital accounts.
Q. Arkose Labs has been growing tremendously and winning laurels along the way. What are the developments and expansions in the pipeline for the near future for Arkose Labs?
A. At Arkose Labs we are always innovating. We take feedback from our clients and use that to continually improve the product. We plan to continue to grow our team, expand into new geographies, and innovate to defend against the latest evolving fraud trends.
Q. Finally, what are your advises and suggestions to businesses, especially those in the gaming and gambling sector, on how to tackle online frauds and threats like credential stuffing?
A. The key is to really understand how fraudsters attack you and how they make money. You almost have to think like a fraudster. The way a fraudster will attack a gambling platform, and how they monetize such attacks, will differ from attacks against an online banking service, social media site, or streaming service. Work backward to figure out how they get money out of your platform and how to make that more difficult. It could be by making it more costly to buy proxies by utilizing robust IP intelligence. Or device fingerprint forcing them to invest in more software. You can trigger additional step-up measures for suspicious traffic. It’s important to not just rely on passive signals, as fraudsters can not only get around those, but it also can lead to false positives.
By making the ratio unbalanced on how much time and money fraudsters have to spend on attacks versus what they get out of them, ultimately they will move on and do something else. That’s the most effective way to stop fraud.
Nik Robinson, CEO at Big Time Gaming, talks about the challenges studios face when it comes to sequel slots such as its just-launched Danger! High Voltage 2.
Congratulations on the launch of Danger! High Voltage 2. Tell us more about the game and what players can expect.
Thanks! We’re absolutely thrilled to launch Danger! High Voltage 2—it’s an electrifying sequel we think fans of the original will love. When we released the first Danger! High Voltage, the response was phenomenal, and players kept asking for even more high-octane action. So, we set out to turn things up to 11 with this release.
The game cranks up the excitement with our Megaways™ engine, giving players up to 117,649 ways to win on each spin. The base game is supercharged with volatility and powered by the MegaDozer, perched right above the reels, ready to drop Scatters, Wilds, Multipliers, and other electrifying surprises into play. Then there are the two fiery free spin bonuses—Fire in the Disco! and Danger Danger!!—designed to keep players on the edge of their seats.
And, of course, it wouldn’t be Danger! High Voltage without the unforgettable soundtrack by Electric Six! Get ready for some serious foot-tapping and headbanging because this game truly brings the heat.
How does the second instalment differ from the original Danger! High Voltage slot you launched back in 2017?
This time around, players are transported to an electrifying thrilling industrial scene, and introduced the groundbreaking mechanic MegaDozerTM mechanic sitting up top, ready to unleash Scatters, Wilds, Multipliers, and surprises.
It’s amazing to see how much slot game design has evolved since we launched the first game in 2017, and Danger! High Voltage 2 is a testament to that evolution. This time, we’ve built it around our Megaways™ engine, which amps up the gameplay with up to 117,649 ways to win on every spin.
We’ve also kept the player choice element for the Free Spins round, but we didn’t just stop there. Fire in the Disco! and Danger Danger!! are brand-new bonus features that make every spin a symphony of excitement. It’s a whole new level of Danger! and a thrilling way for players to experience just how far we’ve come in delivering cutting-edge slots.
What made the iconic song from Electric Six the perfect soundtrack for creating a slot game around?
When we set out to create Danger! High Voltage 2, we knew we had to keep the core essence that players loved—the name and that iconic Electric Six soundtrack—but from there, this game is a totally new beast.
It’s insanely catchy and the perfect soundtrack for spinning the reels. For me, it stirs a strong feeling of nostalgia, taking me back to the early 2000s when the song was riding high in the charts. The more I listened to it, the more I became convinced it would be huge fun to create a slot game around the song. The lyrics lend themselves to bonus features (Fire in the Disco! Danger Danger! Or the original High Voltage & Gates of Hell), and the disco theme works really well as an online slot because it is so visual and colourful. With the original, we were able to capture the essence of the song and bring it to life, which is why Danger! High Voltage became a runaway success. Danger! High Voltage 2 turns the volume up to the max and we fully expect it to rise to the top of the charts, just like the original did.
Just how hard is it to launch a follow-up to a hugely successful slot game? What are the main challenges in doing so?
Launching a follow-up to a hit like Danger! High Voltage is no easy feat—it’s a bit like making the sequel to a blockbuster movie. You need to build on the experience offered by the original game, keeping true to the core theme and gameplay while making sure it offers something new and different. Stick too close to the original and it won’t deliver the excitement players are seeking, move too far away from it and you can end up with a significant disconnect from the original. But we reimagined the visuals and mechanics, integrating our Megaways™ engine as it adds massive win potential with up to 117,649 ways to win and to keep the gameplay engaging. We took risks with a completely new mechanic MegaDozer™ and introduced two brand-new free spin features, Fire in the Disco! and Danger Danger!! which had to be meticulously tested to ensure they deliver the right blend of fun and volatility. It becomes a bit of a balancing act whereby you need to keep core elements the same or similar and then bring in new elements that take the whole package to the next level. It’s easy to see why the second album is often the toughest for musicians.
Big Time Gaming seems to have cracked the code when it comes to sequel slots with the recent launch of Bonanza Falls so you must have been able to overcome these challenges.
We’re fortunate to have such strong original titles like Bonanza and Danger! High Voltage as a foundation for our sequels, but make no mistake—it all starts with the team’s incredible work in crafting these iconic games in the first place. When you have a solid base, it gives us the freedom to innovate boldly. For instance, with sequels like Bonanza Falls and Danger! High Voltage 2, we introduced fresh mechanics like MegaDozer™, Win Exchange™, Bonus Coins, which add entirely new dimensions to gameplay. These features aren’t just updates; they’re true evolutions that deliver exhilarating experiences and keep players coming back.
Our team embraces these challenges head-on, bringing excitement and a touch of fun to every sequel we produce. And while these games build on the legacies of the originals, they’re crafted to stand tall on their own merits. Bonanza Falls and Danger! High Voltage 2 don’t just rely on the reputations of their predecessors—they’re outstanding games in their own right, designed to thrill players new and old alike. It’s about creating something fresh while capturing the magic that made the originals so beloved.
Match Hype has just won two industry competitions. Talk us through your product.
Match Hype brings engagement from social media platforms like TikTok and Instagram into the sportsbook. Our technology automatically turns raw sports data into short videos full of sports and betting insights. We have the capacity to create up to a million videos daily in more than 30 languages. We also provide hosting and streaming of the videos, and we track everything in the video thanks to our own player. The high level of video experience and the scale make us unique in the market, and we believe that this innovation is extremely needed in the industry—and the judges in the competitions probably agree with us.
What technologies are you leveraging to deliver such a cutting-edge tool/product?
We have more than six years’ experience in developing dynamic video solutions for clients like Microsoft, HBO, and SAP, and a decade in high-end video production for similarly well-known clients. Match Hype is the essence of this. We have developed our own robust cloud infrastructure that enables us to work on a huge scale. We can also leverage the integration of third-party solutions that help us make the video content rich and engaging. The AI boom came at the right time to help us make the experience for the viewer even better.
Who is Match Hype aimed at?
We focus mostly on sportsbook operators, where we think we can bring the biggest value. But we also have clients on the affiliate and media side. Our “competition” at the moment are creative professionals who are able to create one video at a time. To cover hundreds or thousands of events daily, you need huge manpower. With Match Hype, you don’t need that—it’s all automated. Anybody who appreciates this level of efficiency will benefit.
The end users are any sports fans who enjoy engaging videos. So basically everybody.
Has this industry been slow to embrace video content and unlock the potential it offers? If so, why?
It’s hard for us to talk about the whole industry, as we haven’t been part of it for that long. But iGaming feels like a conservative industry where only truly meaningful innovations make it. Fingers crossed for Match Hype being one of them. We are confident because of our track record in other industries, and mostly thanks to the results of our dynamic videos that are already used by significant igaming industry players.
What makes video content so effective at customer acquisition? How can Match Hype be used in this regard?
People just love video content. In the last review, TikTok said that the average user spends around 90 minutes a day on their platform. Platforms like Spotify used to be music and podcasts only; now they are full of videos. You just can’t ignore that. Video killed the radio star, and a static sportsbook is next to die.
And what about retention? How can it be used to keep players engaged and coming back for more?
Imagine that a 30-second video gives you the exact insights to help you make a betting decision without spending dozens of minutes on different resources to gather all the information. People don’t want to read anymore. This is probably an even bigger strength of Match Hype than user acquisition.
What can we expect from Match Hype in the coming months?
We will establish Match Hype as an industry standard for dynamic video content. We’ll bring many more sports like tennis, basketball horse racing and. We are preparing real-time video use cases—for example, half-time updates in football—and new distribution channels like integration directly into streams. The potential is huge. Stay tuned.
Any final thoughts?
For the last year, we have talked with literally hundreds of iGaming experts, investors, and executives. Almost every one of them sees fan engagement as a huge topic in the upcoming months and years. And video will definitely play a key part in it.
Video says more than a thousand words. Give it a go—watch one of our 30-second videos and see for yourself.
Affiliate Industry
Flying high: How RavenTrack is helping operators unlock the true potential of their affiliate programs
We sit down with Adam Rowley, Managing Director at RavenTrack, to understand why data, tracking and optimisation are key to a successful affiliate program
Your tagline is “win at performance marketing”. Tell us more about how you help operators maximise their partnerships with affiliates.
It is indeed. RavenTrack is a powerful affiliate tracking solution that allows operators to track, optimise and grow through their affiliate programs. Our proprietary solution offers an advanced affiliate tracking platform built by iGaming experts – this ensures it meets the unique demands of the industry, including the need to withstand the pace and complexity of affiliate marketing in the online sports betting and casino space. RavenTrack has also been designed to be flexible and customisable so that it can be adapted to individual client requirements. This combination of qualities has seen us become the go-to affiliate software tracking provider for more than 150 brands across the world, brands that are winning at performance marketing with the support of RavenTrack.
Why is tracking so important to the ultimate success of an affiliate program?
Tracking is the glue that holds marketing and sales together in the online arena. But effective tracking requires a platform that delivers reliability, accuracy and a seamless UX so that users can easily dig into the data and generate valuable insights. Speed and reliability are crucial so that operators don’t miss a single click or conversion. To track data effectively, operators (and their affiliate partners) need tools such as pixel and postback capabilities and geo-targeting. The former allows affiliates to track customer activity in real time which helps them maximise the revenue of the brands they work with. When it comes to intelligent geo-tracking, it allows users to identify and aim to funnel traffic through specific locations.
But tracking is just one part of the process and success of an affiliate program– online sportsbook and casino operators must be able to take the data they have tracked and use it to optimise campaigns, both internally and those being run by their affiliate partners.
What does optimisation look like? How does RavenTrack help its customers do this?
Traffic source provides a lot of spoke for optimisation, especially when it comes to things like which affiliate is performing best, changes to traffic, ROI and conversion rate optimisation. With RavenTrack, operators have the insight they need to do this. They can also give their affiliates access to data via their own internal reporting systems – this is done via our two-way API – to help determine which campaigns and creatives are delivering the best results. Operators also need to optimise the commercial agreements they have in place with their affiliate partners, and this means being able to offer them a range of options including CPA, revenue share, CPL, CPM and hybrid.
As operators – and their affiliates – get more experienced at using data and tracking, they will want to customise reports to a pretty granular level so that they can optimise to a much deeper and greater extent. Customisable reports (we have more than 20 reports available), marketplace and dashboards are just a few of the tools we provide to help operators and affiliates optimise campaigns and work to the commercials that deliver for both parties.
And how does all of this come together to help both operators and affiliates scale at pace?
Our fixed-cost model means operators can create as many campaigns for their brands as they like without the worry of additional costs. This in turn makes growing their program pretty straightforward. With a long list of commission structures available (which can be customised by the client) for their affiliate partners, operators can ensure the growth of the program is reflected in the growth of the wider business, ultimately allowing them to maximise profitability from affiliate marketing activity while at the same time ensuring their partners are fairly compensated for the quality traffic they send.
Migrating to a new affiliate tracking platform can cause major upheaval. How do you help operators through the process?
We know that moving to a new platform can be a big decision and a significant undertaking, but we have plenty of options to make it a seamless process from start to finish. This includes working with the affiliate program team to run their old and new program side by side to ensure there is absolutely no drop-off in traffic or lost data. Our UK-based account and customer support team is always on hand to assist during the migration process, and once operators are up and running with RavenTrack – this includes helping them get the most out of our platform and tools.
RavenTrack has only been around for a handful of years but has already achieved great things. What can we expect in the months ahead?
We hit the market in 2018 and haven’t looked back. Today, we work with 150 brands, processing more than one billion clicks per month and £2billion in deposits to date. The operators using RavenTrack to run their affiliate programs have generated more than £500 million in revenue and counting. Our numbers speak for themselves and no matter the size of brand or affiliate program, our solution is the key to unlocking the true potential of affiliate marketing. As for the months ahead, expect more platform updates, new tools and some big-name partnership announcements.
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