Polymarket faces $10M fraud attempt

• Polymarket has faced an attempted $10 million fraud operation involving stolen debit cards.
• More than 80% of US deposits were rejected as fraudulent at the peak.
• The prediction market has since strengthened its fraud and compliance controls.

Polymarket has faced an attempted $10 million fraud operation on its US platform.

Attackers linked stolen debit cards to thousands of new accounts and placed wagers before attempting withdrawals.

“Our market integrity framework includes processes to detect, review and respond to suspicious activity,” a Polymarket spokesperson told The Wall Street Journal.

Checkout.com rejected more than 80% of Polymarket deposits as fraudulent at the peak, compared with an industry rate of about 1%.

Around seven users accounted for most of the activity, with one user attempting almost 4,000 deposits.

Polymarket has since added risk staff, limited debit-card linking and hired former Amazon finance chief Warren Jenson as its first CFO.

The company has also brought in Riskified and says fraud rates returned to industry norms by May.