Fraud is everywhere! Not even a single industry is completely fraud-free. Talking about the new online methods of everyday interaction the attackers have also exploited the online platforms to find multiple ways of cheating and theft and not only on financial platforms of banking and trading but on other platforms as well such as gaming.
In recent years the gaming industry has pushed its levels of growth to the next dimension. People are choosing gaming as their profession and even some universities are offering full-fledged scholarships to their esports teams. Other stats also define the success of the gaming platforms, according to the statistics the worldwide audience recorded for e-sports is nearly touching 500 million users in the year 2021, the size is expected to be multiplied in the upcoming years.
With so many users online the revenue is crossing billions! Exploring more about the statistics, it is a fact that the gaming industry’s revenue generated by gamers online crossed 159 billion dollars in 2020.
Prevention Of Fraud In Gaming using AML KYC Regulations
To prevent fraud in online gaming platforms many corporations are opting for special services and multi-level layers of security to protect their users as well as the revenue of the industry. The gaming organizations have complied with the KYC (Know Your Customer) regulation checks in multiple ways of checking users’ credibility. The prevention of fraud helps in the anti-money laundering from the gaming platforms.
The main KYC cycle that is followed by the gaming industry that is complied with AML (Anti Money Laundering) laws, especially the gaming AML KYC compliance is explained in this blog.
KYC Identity Verification
With the identity verification solution, the companies are verifying the identity of their customers i.e. players in the gaming terms. With proper implementation of the KYP (Know Your Player) check, organizations identify players to prevent attacks. The cheaters use multiple strategies of forged player identities and other aspects such as phishing attacks and automating engines. The player identification process ensures that the real user is accessing the desired game lobby and availing of the game resources. For the purpose of identity verification, corporations use multiple techniques which help in gaming fraud verification.
Age verification is a must part of every game engine as it restricts users that do not meet the gaming requirements. It also helps in the protection of minors and other sensitive audiences. The age verification process is carries out in multiple ways such as security questions and liveness detection.
Document verification is the process of verifying players’ documents for the purpose of identity verification. Like other firms, the gaming sector also performs document verification at the time of user registration or digital onboarding of the player. The document verification implements by most gaming corporations as a principle of KYC AML regulation.
Biometric verification is becoming a keen process for most technology firms to guarantee a user identification process. It is a major check which is also performed by the gaming industry to make sure the player is real and not using an automated bot or engine for the purpose of winning every time. Player biometrics such as fingerprints and facial biometrics are recorded and saved into the system database which is checked from time to time for the authorization of the player.
Newer systems are using this technique more efficiently to check user presence across gaming platforms. It ensures the right player is accessing the right account for maintaining an enjoyable gaming experience.
Another major compliance for most of the financial industries is the KYCC (Know Your Customer’s Customer) regulation. The gaming industry is effective in utilizing the KYCC check on their players online. They use digital automated systems to verify the player and learn about their interactions with other users of the game. The intelligent online system always monitors the actions of the player and looks for any sort of fraudulent in-game activity.
With the KYCC check, the engine also understands the player patterns and the type of interactions they involve in-game with other players. Also, they can verify other users or game audiences by the KYCC compliance.
Dealing in billions, scams online heavily affects the gaming industry by attackers to lure players into various traps that lead to inconsequential events.
The fraudsters are targeting the gaming community for different purposes of identity theft and money laundering online. With an industry so rich in creating new opportunities and revenues every month, fraudsters always look to take advantage of new methods of scamming. The KYC AML compliances are obligatory for the prevention of fraud and theft online.