The gaming industry allows players around the world to connect with each other remotely, which also makes it an attractive platform for criminals to commit fraud. Scammers with fabricated identities are searching for fast and less controlled ways to launder their money. Similarly, by employing gaming and payment schemes, these fraudsters effortlessly exploit innocent gamers while wreaking havoc on online platforms.
The gaming industry is experiencing remarkable development. This is due to innovative player onboarding and gambling strategies. Although 54% of users prefer mobile devices to consoles, online platforms need to provide quick and secure procedures. As the use of virtual reality increases, scams are becoming more prevalent. This blog will discuss the most popular gaming frauds and how AI-powered IDV solutions can assist in tackling them.
An Overview of Common Frauds in the Gaming Industry
In-app purchases, premium content, and remote onboarding are examples of game industry advances. While this helps online platforms attract more players and raise income, it also has unintended repercussions. Online gambling fraud is expanding as a result of digital payments, and the use of forged identities exposes honest players to data breaches. Individuals also provide Personally Identifiable Information and payment data while making in-game transactions.
Online platforms enable and accept payments in real-time. However, the amount of confirmation data stored by these sites also grows as more people participate. This raises the likelihood of gaming frauds and makes the sector an attractive target for crooks. Online platforms must therefore use increasingly potent identity verification technologies to stop criminals from signing up.
The gaming industry needs to develop efficient fraud detection tools because scams can cause significant harm and financial losses due to a lack of regulatory attention. Criminal threats in e-sports can take several forms, most of which are discussed in the following sections:
1. Manipulation of Gamers
Criminals can cause a variety of problems for legitimate gamers by using many phoney identities. This involves coercing gamers into disclosing personal information or taking advantage of their post-onboarding experience. Similarly, crooks can simply entice worldwide gamers to supply payment information by exploiting bogus websites and enticing promos. This eventually leads to blackmail or theft of cash.
So, online platforms must implement effective gaming frauds prevention measures to restrict player abuse and guarantee a safe gambling experience.
2. Account Takeover Scam
It is one of the most prevalent gaming frauds, since fraudsters just steal users’ identification data and take over their accounts. This, however, serves as the base for many additional risks, such as payment fraud. This sort of gaming frauds involves the use of synthetic identities, stolen credentials, or a significant volume of phishing assaults.
Crooks are quite good at duping real players and stealing their sensitive data. Furthermore, with several phony identities at their disposal, con artists can simply perform a variety of online gaming scams.
3. Fake Chargeback Claims
This sort of gaming fraud includes crooks impersonating financial authorities and contacting real gamers. They then force the players to provide their credit/debit card information. This, also known as friendly fraud, allows criminals to benefit from fake chargeback claims for in-app purchases they never made.
In response to an upsurge in gaming frauds, regulatory agencies are implementing tight payment screening and permission checks. This necessitates internet platforms and businesses to monitor transactions while authenticating their origins. Otherwise, regulatory agencies may levy substantial fines. As a result, the gaming industry must integrate stronger online gambling fraud protection technologies in order to reduce erroneous chargeback claims.
4. Bonus Abuse
Fresh deals, free spins, and sign-up promotions all contribute to additional advantages for players that join the online gaming community. This assists e-sports platforms in attracting more users and expanding their offerings. However, novel solutions pose a significant risk of game fraud. Criminals that employ complex ways to build phony profiles and avoid identity checks can lose a lot through bonus misuse.
Another target for con artists is incentives that come with registration or are given to players automatically. As a result, e-sports platforms must feature online gaming fraud protection capabilities.
5. High Return
Returns are more likely to pose a threat to bettors who place small betts or don’t plan to make in-game payments. Various online marketplaces provide paybacks for people who return a product. Criminals utilize the names and payment data of legitimate players to claim fake refunds in this sort of online gambling fraud. In this instance, the different platforms are liable for the costs.
While the simplicity of in-game transactions aids e-sports markets in attracting more players and increasing revenue creation, it also increases gaming fraud. This necessitates that digital platforms implement effective online gaming verification with KYC to confirm individuals’ identities prior to digital onboarding.
Online platforms are implementing new procedures for identifying gamers due to the growing concern of gaming frauds. Individuals’ experiences are being streamlined because of remote onboarding and in-app purchases. Gaming platforms must employ AI-enabled IDV solutions to enhance their security and privacy policies. Online gaming fraud protection systems protect esports platforms from scammers by using real-time selfie-based authentication, automated document validation, and constant monitoring of players.