TECHNOLOGY

Gaming Compliance: Combating Fraud With Digital KYC Solutions

Gaming Compliance

The gaming industry has benefitted a lot from the ever-evolving technology. However, there are a few drawbacks too, like the advancements in technology causing the change in regulations. Gaming networks throughout the US gather and store data of their customers for two main purposes. To make sure that the customer is telling the right age and that they are who they claim to be. There is an excessive amount of faulty customer data which fraudsters can take advantage of.

These issues alone are very tough to deal with, but when they are combined, they make a deadly combination. It can tear down the reputation of a gaming compliance company, and also damages the relationship that the gaming community has with the company. 

The Boom of the Digital Gaming Industry

The online gaming industry was already a massive industry with a huge customer base, but the Covid-19 outbreak doubled the digital gaming traffic. In 2020, the worldwide gaming industry was worth $162.32 billion, and it is predicted to grow to $295.63 billion by 2026. 

When it comes to digital gaming, practically all player and game management activities occur without any physical connection between gamer and controller – a welcome approach for pandemic-averse gamers. Nevertheless, with less in-person interaction, gaming companies must provide more in terms of convenience and efficiency to enable the finest gaming experiences. Even though the goal may appear simple, digitally onboard as many genuine players as necessary, are a few critical factors impeding success:

Complex Onboarding System

Building a reliable, seamless digital experience is critical when instilling trust and convenience are essential components in effective client acquisition. However, this can’t be done at the expense of quickness and dependability, or the company will risk losing its clients for good. Considering the length and difficulty of the registration process, more than 25% of digital gamers abandon it. The stakes are high: casino operators must improve player registration while adhering to constantly changing rules.

What will happen if they do not? Let’s draw a picture: Players must register with encrypted log-in details for each new gaming site. They must then provide paperwork for authorization. This is frequently when the friction comes into the picture. Typically, gaming companies will try to confirm identities by scanning national IDs. If that fails, players can perform liveness detection, such as pictures, videos, or audio, to verify their identity. However, these tactics are challenging for online players and make them easy prey for scammers.

If a user fails the basic verification, or if the procedure takes even one second longer than expected, digital gamers will quit their account registration process in going to more convenient platforms. Identity verification may be a simple method to make sure that the company validates and sign up every genuine candidate that comes through. 

Fraud in the Gaming Industry

The huge development of the gaming industry throughout the covid-19 outbreak has revealed that many people are looking for new ways to occupy themselves and interact with others. However, for every consumer that registers, there are about as many scammers waiting around the corner. Deception takes various forms in the online gaming industry, including arbitrage, fraudulent sites, account takeover (ATO), and others.

Players have become accustomed to the concept of paying real money to purchase in-game items. This strategy attracts scammers and encourages them to develop new ways for scams and identity fraud. As an example, consider ATO, amongst the most dangerous and popular types of fraud.

How do Fraudsters Use Customer Data to Commit Crime

Fraudsters love the opportunity to register new accounts, snatch sign-up rewards, and place illegal bets with stolen or “spoof” accounts. The procedure is as simple:

  • Gain access to the user’s account
  • Make unauthorized changes to account information such as passwords and addresses
  • Perform a large number of illegal transactions

It only requires 3 steps to inflict substantial financial damage, long-term reputational harm, and harm to a user’s accounts and identity. As a result, gaming companies must install stringent cybersecurity precautions to reduce susceptibility and fraud threats.

Gaming Compliance

Gaming companies are ideal targets for ID theft and other finance-related fraud, but hackers aren’t being let loose. Organizations in charge of regulatory requirements are increasing their measures to combat such illegal activities. Given the rising number and unpredictability of compliance obligations such as KYC solutions (Know Your Customer) and AML (Anti-Money Laundering), there can be serious financial consequences for wrongly verifying digital gamers.

Online Gaming Verification with KYC

Those in the gaming industry may use complete identity verification procedures to expedite customer onboarding, reduce the dangers of fraudulent activities and non-compliance, and securely develop their digital gaming user base. However, not just any type of data validation technique will suffice.

Perform age checks as age verification in gaming is very critical. Through correct client data, the identification and address verification options must quicken and improve onboarding activities. By removing complexity from the registration process and end customers will receive the best user experience possible. 

Bottomline

Gaming companies that can develop a layered strategy that combines numerous safety layers of identification features with address authentication will be able to give a friction-free verification process at the pace that their clients demand.

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Mia Richard

Modify your mind and innovate your thoughts with dream tech news. Dream Tech News is one of the best sources for tech news. They have a great mix of tech and business news, and they always cover the latest happenings in the industry.

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