Due to the covid outbreak, the people were bound to their houses and had nothing to do, so they started utilizing ample time in playing games. People of every age were addicted which suddenly increased the demand for games. This is considered the golden time for the gaming industry as millions of transactions were carried out in purchasing games. Various sources have briefed that the online gaming industry could reach 169.7 billion in the year 2025. The online gaming platforms provide the facility of online parches and feature add-ons. This online transaction opens the gateways for fraudsters to commit their suspicious activities. Therefore, online gaming safety should be a top priority to protect the platforms as well as the audience.
KYP- Viable Way to Reduce Fraud in Online Gaming
Know your player (KYP) compliances are rules and regulations established by the regulatory authorities that the online gaming platforms are obliged to incorporate into their systems to ensure data confidentiality and determine the risk of gaming frauds. Moreover, AML screening and background check in order to eliminate the risk of money laundering. Identity verification for Online Gaming using KYP is mandatory to prosper in this modern world.
The Process of Know Your Player
Online gaming needs to incorporate know your player procedures in order to verify the real identity of the players as well as to authenticate the money transaction.
- The players who tend to register on online gaming platforms have to input a set of personal information like name, id card number, etc.
- The online platforms request the players to upload photos of the government-issued identity documents such as driving licenses, passports, etc.
- Afterward, the player captures the live selfie using the smartphone camera
- The selfie and the photo on the identity paper are compared to see how close they are.
- The legitimacy of the identity document is verified.
- The information placed over the documents is extracted using the OCR technology and is cross-checked with the players’ information provided at the time of registration.
- If the provided information and documents are matched with the players’ selfie system grants access.
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Few Most Occurring Online Gaming Frauds
Multiple Gaming Accounts
The fraudsters create various accounts in order to use them in online gaming and gambling platforms. These accounts are made with stolen information. The accounts are then utilised in a variety of schemes to obtain a plethora of advantages from the winning accounts.
Credit Card Scam
Credit card fraud and chargeback is one of the most happening gaming frauds. The fraudsters usually steal the credentials of the legitimate credit card to place fake bets in online gambling and top up the online gaming accounts. Such irregular transactions are noticed by the banks or credit card companies, but the cardholder refuses to do so in every case. Hence, the online gaming know your fox business has to face chargeback and hefty fines.
Digital gaming and gambling businesses are flooded with money launderers. Such platforms have to be quite sure that their platforms are not being used by the fraudsters in order to clean their black money. Given that the gaming business involves large quantities of money, money launderers have plenty of room to hide and incorporate their unlawful cash without being discovered. The online gaming platforms are obliged to combat such suspicious activities and should incorporate KYC and AML laws as well as proper procedures of age verification.
Benefits of Identity Verification for Online Gaming
Prevents Minor Exploitation
It’s considered to be the social responsibility of the online games platforms to protect the young generation from scams as well as also guides them regarding the cons of involving in suspicious activities. However, by employing the online verification solution with KYC laws and age verification features the industry can ensure legitimate onboarding on age-restricted websites and gambling platforms. This is the only way to prevent the minor from falling prey to fraudsters.
Identity frauds are one of the common frauds among digital platforms for games which are damaging the reputation. As well as the credibility of the this industry. With the covid outbreak, the number of synthetic identity scams has increased exponentially. Minors use false identities to get them registered on the digital platforms whereas criminals use forged identities to manipulate the system. Due to this, the gambling platforms tend to face chargebacks. Fines from the regulatory authorities which results in huge financial losses. Therefore online identity verification incorporated with age verification service helps out to achieve the goal of deterring frauds.
Digital game platforms, smartphone gaming apps, gambling websites are obliged to adopt know your player identification solution. This will help such platforms to fight a war with the fraudsters. The game industry’s repute and trustworthiness totally rely on how effectively they have integrated KYP into their systems. By doing this the gaming business can provide a secure playing field to their audience.