Feds Allege $3M ‘Bonus Abuse’ Scheme Used Stolen IDs at FanDuel
Posted on: February 9, 2026, 11:09h.
Last updated on: February 9, 2026, 11:09h.
- Stolen identities allegedly used to open thousands of gambling accounts
- Bonus abuse scheme tied to $3 million in illicit winnings
- Prepaid cards allegedly used to launder gambling proceeds
Federal agents in Connecticut have arrested two men accused of using stolen identities to exploit online gambling bonuses and promotions for roughly $3 million.
Amitoj Kapoor, 29, and Siddharth Lillaney, 29, both of Glastonbury, Conn., have been charged with fraud, identity theft, and money laundering offenses in connection with the scheme.
Prosecutors allege the pair exploited new-user promotional incentives, such as bonuses, credits and free bets, intended to attract genuine new customers.
3,000 Affected
Since 2021, Kapoor and Lillaney used the personal identifying information of around 3,000 identity theft victims to open FanDuel and other online gambling accounts, according to prosecutors.
They also held accounts at background-check websites such as BeenVerified.com and TruthFinder.com to get background information on the victims, according to court documents. This allowed them to answer identity verification questions when signing up for gambling accounts.
The pair transferred their winnings onto stored-value prepaid cards — payment cards that function like debit cards but are not directly tied to a traditional bank account. Such cards are commonly used for faster withdrawals, but they can also make funds harder to trace, particularly when linked to accounts opened under false identities.
Authorities allege the cards were then used to move winnings into other financial accounts controlled by the defendants, forming the basis for the money-laundering counts.
Authorities have so far contacted more than 1,200 of the identity theft victims, according to State Department of Consumer Protection Commissioner Bryan T. Cafferelli.
“Although it may have started as a gaming-related investigation, the scope of the alleged identity theft and fraud, with thousands of potential victims across the country, quickly became the primary focus of this investigation,” Cafferelli said.
Bonus Abuse on the Rise
Thomas Demeo, Special Agent in Charge of IRS Criminal Investigation in Boston said: “It’s alleged those charged caused immeasurable hardship to the victims of their identity theft scheme. IRS Criminal Investigation remains committed to unraveling complex financial transactions and money laundering schemes where criminals attempt to conceal the true source of their money.”
The practice, known as “bonus abuse” in the gambling industry, is one of the most persistent and costly forms of fraud facing iGaming operators. Recent industry analysis suggests bonus abuse now accounts for roughly two-thirds of all iGaming fraud, and operators estimate that it can erode up to around 15% of gross gaming revenue.
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