With constant internet growth and technological innovation, certain industries have begun to flourish. The online gaming universe is one such industry. Still in its infancy, this phenomenon, known as iGaming, has grown into a multi-billion-dollar business. There used to be a distinct demographic of gamers: younger men. These days, however, the industry attracts people of all different ages and genders. But, like any other rapidly growing business, online gaming has various risks. If you are involved in this industry, you should be aware of the online fraud risks associated with it.
In the online gaming industry, there are country-specific rules and regulations, and a severe lack of systematic authentication tools, which makes it easy for fraudsters to be successful. Gaming sites have to implement “Know-Your-Customer” (KYC) procedures, and fraud prevention tools. These precautionary measures protect against scams like fraudulent deposits, game cheating, money laundering, chargebacks and more.
To combat online fraud, online gaming merchants must have a strict, and robust registration process. As part of this process, their online gamers must complete an initial screening, authentication and verification. The merchant wants to validate the identity of the gamer, while also collecting information that can protect the gamer should something go wrong down the line. The KYC serves as an extra level of identification. These procedures re-validate the identity of the gamer by requiring their gaming identity, and their standard credit card information. Third-party services also offer identity solutions that can help prevent fraud.
As the online gaming industry grows, so, too, do the fraud threats associated with this industry. Luckily, there’s a developing industry devoted to detecting and preventing this type of online fraud. As an online gamer, or an online gaming merchant, it’s important to take the precautionary steps to protect yourself against the growing threat of fraud in this industry.