Role of Novel IDV Solutions in Protecting the ESports Industry from Gaming Frauds

The theft of customers’ personal identification data is one of the most common gaming frauds as it completely takes over the account of the player by illegal methods.

The gaming industry is an attractive platform for scammers as it gives accessibility to the players through which they connect to other players around the world. Scammers are always there, in search of methods, which can help them to launder their money. These scammers exploit innocent gamers effortlessly and the number of gaming frauds is increasing rapidly.

On the other hand, the gaming industry itself is developing rapidly. Mobile devices are preferred over gaming consoles, as they are pocketable and games can be played on the go. But the issue is that mobile devices mostly contain personal data like photos, videos, contacts, and other social accounts. The gaming platform has seen a rapid advancement in a short period of time, for example, the use of virtual reality has increased quite a bit, due to which gaming frauds are becoming more prevalent.

Common Fraud Practices in the Gaming Industry

The gaming industry is now moving towards the phase in which VR plays an important role but there are other examples like in-app purchases, remote onboarding, and premium content. Though this is helping in generating income and attracting more players, online gambling fraud is also increasing due to the allowance of digital payments. Individuals are required to provide Personal Identifiable Information (PII) and payment data while making in-app or in-game transactions.

Online platforms accept payments in real-time, though it raises the chance of gaming fraud which is attractive for scammers or hackers. So, the gaming industry needs efficient and effective scam detection tools because scams can harm personal data as well as financial data.

How Gamers are Manipulated?

A variety of problems are generated for the gamers by using different identities which makes legitimate gamers disclose their personal information. Similarly, gamers can simply be scammed by crooks worldwide to supply payment information by showing fake websites and promotions aka promos which leads to blackmail. So it is necessary for online platforms to implement effective prevention from gaming frauds through which the player abuse should be restricted and offer a safe and secure experience of gambling.

Fake Claims of Chargeback

This sort of gaming fraud is also known as friendly fraud which includes scammers appearing as financial authorities and approaching real gamers. Then the gamers/players are forced to provide their credit/debit card information.

On the other hand, tight payment screening and permission checks are being implemented by regulatory agencies. This is due to the upsurge in gaming fraud. It dictates internet platforms and organizations monitor all the transactions, otherwise, substantial fines will be taken. In order to reduce chargeback claims, strong integration of online gambling scams must be done by the gaming industry.

True Fraud aka Credit Card Fraud

Credit card fraud occurs just like anyone might imagine how traditional fraud occurs. This fraud happens so quickly that the victim may not even know about it. The scammer steals the information of a person’s credit card and uses it to build the account's value, and purchase skins and in-game credits. These types of accounts are then sold to trading sites, to make money and can be sold for hundreds or thousands of dollars.

On the other hand, the dark web is used to sell the information of stolen credit cards or can be attached to newly created PayPal accounts. If the transactions are unauthorized, it will lead to chargebacks. The number of chargebacks is the biggest enemy for any victim, apart from scammers.

Account Takeovers

One of the most common gaming scams that occur in the industry is account takeovers. The victims of this online gaming fraud are those gamers who have spent so many dollars to level up in the game. In-game items are sold for in-game currency or they sell the complete account. There is a term called “Credential Stuffing,” in which scammers use automation software to find a combo of usernames and passwords. These accounts are mostly bought by new gamers or users, looking for an easy way to upgrade their accounts to show off. There are many other types of fraud, which can occur by using the sensitive information of a user.

Prevention of Online Gaming Frauds

To keep an account safe from these identity online game scams, gaming compliance preventions are a must. Here are some steps to prevent online gaming fraud:

Understand the behaviour of scammers

A double verification method should be used

Always check for unauthorized or suspicious login

Use KYC verification checks

Prevention of online gaming fraud is a must now and it can only be made by using up-to-date data and information. Enhanced data security can also be made by the use of AI and ML.

Conclusion

Online gaming frauds are increasing rapidly due to which new procedures are being implemented by online platforms. Implementation of AI-enabled IDV solutions in the gaming world is necessary for the enhancement of security and privacy policies. The use of real-time authentication and automated document validation is a must for online gaming fraud systems to protect esports platforms from suspicious activity.