Polymarket Faces Major Fraud Scheme Involving $10 Million

• •Polymarket was targeted by a fraud scheme involving over $10 million.
• •Fraudsters used stolen debit cards to create thousands of accounts.
• •Polymarket has faced multiple security incidents, including hacks in June and July.

Polymarket, a prediction-market platform, was targeted by a large-scale fraud scheme earlier in 2026. Criminals used stolen debit cards to attempt to move at least $10 million through the platform, with thousands of accounts affected. The fraud was first identified in February, leading to payment processor Checkout.com rejecting over 80% of deposits due to suspicious activity. Internal concerns were raised by employees about the company's focus on growth over compliance. Despite these warnings, fraud levels remained high for months. Polymarket later tightened restrictions on debit card usage but faced additional security incidents, including a June hack that compromised user funds and a July breach affecting nearly 500 users. The company has since appointed new executives to bolster its leadership amid ongoing expansion efforts.