Casino scams are not a new phenomenon, but they have become more sophisticated and daring in 2023. From impersonating casino owners to exploiting security loopholes, scammers have managed to steal millions of dollars from unsuspecting casinos and customers. In this article, we will highlight some of the most notorious casino scams that have taken place thus far in 2023, and what casinos can do to mitigate employee theft risks.

The Circa Las Vegas Heist

One of the most shocking casino scams of 2023 was the theft of more than $1 million from Circa Las Vegas, a new hotel and casino that opened in October 2020. The scammer posed as the owner of Circa, Derek Stevens, and called the cashier’s cage, instructing the employee to transfer the money to a bank account for fire prevention equipment. The employee complied, thinking it was a legitimate request, and the scammer walked away with the money.

The scam was discovered when the real owner of Circa contacted the casino and asked about the transaction. The casino then reported the incident to the police, who arrested the suspect, identified as 39-year-old Michael J. Watkins, on June 27, 2023. Watkins was charged with theft, burglary, and obtaining money under false pretenses. He is currently awaiting trial.

Casino security experts were “dumbfounded” by the simplicity and audacity of the scam, which exploited the trust and authority of the casino owner. They also warned about similar attempts on the West Coast, where scammers have been impersonating casino executives and demanding money from employees.

The Investment Scam

Another casino scam that has been on the rise in 2023 is the investment scam, where scammers lure victims with promises of high returns from casino-related ventures. These scammers often use social media platforms, such as Facebook and Instagram, to advertise their schemes and attract potential investors. They claim to have insider information, exclusive access, or special deals with casinos, and ask for upfront payments or deposits to secure the investment.

However, once the victims send the money, the scammers disappear, leaving them with no recourse or recovery. According to the FTC, investment scams were the fourth most-reported fraud category in 2023, with reported losses of $2.7 billion. People reported median losses of $7.7K, up from $5K in 2022.

One example of an investment scam involving casinos was the case of John C. Eustace, who pleaded guilty to wire fraud and money laundering charges in February 2023. Eustace admitted that he defrauded more than 100 investors of over $19 million by falsely claiming that he had contracts with major casinos, such as MGM Resorts and Caesars Entertainment, to provide gaming equipment and services. He used the money to fund his lavish lifestyle, including buying luxury cars, jewelry, and real estate.

The Social Media Scam

A third type of casino scam that has been prevalent in 2023 is the social media scam, where scammers use fake profiles, bots, or hacked accounts to target casino customers and employees. These scammers often pose as friends, relatives, celebrities, or influencers, and send messages or posts that entice the victims to click on malicious links, download malware, or share personal or financial information.

Some of the common social media scams involving casinos are:

• The jackpot scam, where scammers claim that the victim has won a large sum of money from a casino, and ask for a fee or a tax to claim the prize.
• The phishing scam, where scammers send fake emails or messages that appear to be from a casino, and ask the victim to verify their account, update their payment details, or redeem a bonus offer.
• The romance scam, where scammers create fake online relationships with the victim, and ask for money or gifts, claiming to be in financial trouble, or to visit them at a casino.
• The employment scam, where scammers offer fake job opportunities at a casino, and ask the victim to pay for a background check, a training course, or a uniform.

According to the FTC, scams starting on social media accounted for the highest total losses at $1.4 billion in 2023, an increase of 250 million from 2022. But scams that started by a phone call caused the highest per-person loss ($1,480 average loss).

How to Protect Yourself from Casino Scams

Casino scams can be hard to detect and prevent, but there are some steps that you can take to protect yourself and your money from these fraudsters. Here are some tips to follow:

• Be skeptical of any unsolicited offers, requests, or messages that involve casinos, whether they come from phone calls, emails, social media, or other sources. Do not click on any links, download any attachments, or provide any information without verifying the identity and legitimacy of the sender.
• Do your research before investing in any casino-related ventures. Check the credentials, reputation, and track record of the company, the promoter, and the casino. Look for reviews, testimonials, and complaints from other investors. Avoid any deals that sound too good to be true, or that require you to act quickly or pay upfront.
• Use caution when interacting with strangers online, especially if they claim to have a connection to a casino. Do not send money or gifts to anyone you have not met in person, or share any personal or financial information with them. Be wary of any requests for money or favors, or any signs of emotional manipulation or pressure.
• Report any suspicious or fraudulent activity to the authorities, such as the FTC, the FBI, or your local police. You can also contact the casino directly to confirm or report any issues. By reporting the scams, you can help stop the scammers and protect other potential victims.

Casino scams are a serious threat to the casino industry and its customers, but they can be avoided with awareness, vigilance, and common sense. By following these tips, you can enjoy the fun and excitement of casinos without falling prey to the scammers.