The rise of digital technologies has revolutionized the world’s outlook. Every sector has significantly resorted to artificial intelligence-powered solutions to conduct its tasks conveniently. However, the world’s rapid digitization has allowed potential criminals to use cyberspace for their unlawful ambitions. It has paved the way for them to commit cybercrimes like identity fraud, data theft, phishing, and money laundering. Hence, every financial and non-financial organization must develop a technology-backed KYC procedure(Gamin). Similarly, online gaming firms must also deploy sufficient solutions like gaming compliance during their customer onboarding process.
What are Online Gaming Frauds & How to Mitigate It?
Online gaming frauds occur when cybercriminals tend to scam a gaming operator financially. It refers to all the illegal financial practices that fraudsters carry out to extract monetary benefits from an online gaming firm. The loopholes in the security system of online gaming companies allow such cybercriminals to exploit their weaknesses(Gamin). Multiple account creation is one of the most common forms of cyber attacks in the online gaming industry. They do so to gain certain benefits such as sign-up bonuses, coupons, etc. Online fraud at gaming firms happens solely due to flaws in gaming compliance procedures. For instance, an operator fails to identify an impersonator who has used false identity information. Therefore, the only solution to mitigate gaming fraud is to seek adequate security solutions from SaaS providers so that your online gaming firm assures players’ safety.
Online Gaming Verification With KYC
Know-your-customer procedures are necessary for businesses across various sectors, including financial and non-financial industries. They are significant as they provide safe and secure customer onboarding and ensure compliance with financial regulatory standards like anti-money laundering and counter-terrorism financing. Every organization is bound to comply with these regulations and may face hefty penalties in case of compliance failure(Gamin). The online gaming industry has also widely integrated digital KYC solutions to enhance performance and efficiency. Online gaming verification with KYC is critical to combat fraud and financial crimes, such as money laundering and terrorist financing.
Know Your Player: An Instant Gaming Verification Solution
The online gaming industry must be fully equipped with top-notch technological solutions to combat the risk of cybercrimes. SaaS firms have developed high-tech solutions to assure gaming compliance in online gaming. Know-your-player is one of the tools that online gaming companies must invest in to ensure safety across the board. It allows gaming companies to verify their customer identity instantly. Know-your-player or KYP is a version of KYC procedures (Gamin) directed explicitly at the online gaming industry. Gaming compliance and online gaming safety are crucial for the system’s transparency and the accountability of customers.
Identity Verification for Online Gaming
As per Statista, there will be 1.3 billion online gamers by 2025. Therefore, gaming compliance and identity verification for online gaming have become mandatory for online gaming firms. It is crucial to ensure customers’ security, provide them with a safe gaming environment, and save the gaming platform from becoming a target of financial criminals. Players’ identity verification is, thus, the foremost step in gaming compliance for online gaming. Online gaming firms collect and verify the following documents:(Gamin)
- Government-issued documents with name, date of birth, etc.
- Identity documents, like national ID cards, passports, or driver’s licenses, that the government issues
- Customer’s source of wealth
- Player’s current address and location
This information is vital to improving the gaming platform’s overall security apparatus. It saves your firm from harmful agents like imposters, fraudsters, and money launderers. Moreover, a secure document authentication process guarantees the organization’s credibility and reputation while increasing customer trust.
Importance & Benefits of Age Verification in Gaming AML KYC
A player’s age is the most critical factor in determining their eligibility to sign up for the platform. Online gaming firms must implement an exact age verification procedure for players to comply with gaming AML KYC standards. They can use various approaches, such as requiring a passport or driver’s license to confirm whether the player is eighteen or older. The significance and benefits of age verification in gaming compliance and online gaming are highlighted below:
- Most importantly, it restricts underage players from accessing adult-oriented content, such as graphics of violence, to guard the player’s overall well-being.
- Similarly, age verification during gaming compliance prevents minors from accessing online gaming sites.
- It also ensures the legitimacy of a player, preventing imposter scams.
- Age authentication is crucial for implementing enhanced due diligence so that suspicious player profiles can be strictly monitored.
- It assures that appropriate content and advertisements are directed at a particular age group.
- Age verification is mandatory to achieve anti-money laundering and counter-terrorism compliance, followed by enhancing your gaming firm’s reputation.
In a Nutshell
The loose security mechanisms of the online gaming industry have resulted in soaring cybercrimes, such as online fraud and financial crimes like money laundering. Hence, adequate know-your-customer procedures are the need of the hour to prevent them. Online firms must ensure effective gaming KYC procedures to ensure a safe gaming environment for customers and protect the platform from potential fraudsters and financial criminals.