(NEW YORK) -- Sports books in New York state generated $527.6 million in bets during the first week of the NFL season, according to the New York Gaming Commission, but the head of the Internal Revenue Service's criminal investigation agency warns that sports bettors could become victims of fraud if they don't take protections.
"If you gamble with a site that is not as reputable, your funds, winnings included, may be at risk," IRS Criminal Investigation Chief Guy Ficco told ABC News. "I would also say that fraudsters have looked for ways to compromise the financial system in many ways, including online casinos, and we have seen an influx of identity theft-based crimes."
With "online casinos becoming unbelievably prevalent" there are a lot of sites out there that don't follow proper customer protection protocols, he said.
Fraudsters have also looked for ways to "compromise the financial system in many ways, including online casinos," according to Ficco.
As a result, "we have seen an influx of identity theft-based crimes," Ficco said. He added that crypto has further increased the opportunity for fraudsters to take advantage of people.
"None of us, or the majority of us don't know all the inner workings of crypto and don't know all of the inner working of how things are transferred from blockchains and such. And it just creates more vulnerabilities. So I would just ask the prospective wagers, gamblers out there just to do some due diligence before they place their wagers," he said.
He pointed to recent case in which an organization in Costa Rica took in over $2 billion in wagers. The organization ended up not reporting their profits that they made on those wagers. It was over $20 million in tax that was not reported, he said.
Ficco urged those who sports bet to use reputable online big platforms, do research about where people deposit their money and be cautious.
"Technological advances ... they make life in some ways easier and more enjoyable, but they're filled with peril," Ficco said. "And we as citizens should take it upon ourselves to take those extra steps to ensure that we're placing our money and our wagering in sites that are reputable. And it's a challenge because you could watch a game and within a matter of seconds invest money and feel, you know, invigorated, but know that there are other people out there that might be looking to take advantage of you."
Over the past few years, sports gambling has exploded to a multibillion dollar business, but in some states, including Texas and California, it is still illegal to do so.
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