The era of digitisation brought many conveniences to life. Due to the COVID-19 pandemic, operations and collaboration became a challenge. Thanks to digitisation, organisations handled the situation well and now, business operations are getting back to normal. While businesses are using technology for enhancing the efficacy of operations, fraudsters are using it for their malicious intentions. Unfortunately, criminal activities have remarkably increased and due to the pandemic, businesses have experienced a rise in cyber crimes as well. Identity theft, account takeover fraud, and data breaches are three of the biggest threats and a new breed of scams is all set to bring inconveniences for companies. Replay attacks are an emerging trend and with the help of Artificial Intelligence, all frauds have become more sophisticated.
Given the rise in frauds, the online gaming sector is most vulnerable among all the sectors. According to TechRepublic, account takeover fraud greatly affected the online gaming sector. With the number of online gamers increasing every day, there is a need for a solution to fight crimes in the gaming sector. Fortunately, Know Your Customer (KYC) verification is one of the ideal ways that can help companies in fighting frauds. Read this blog to find what is KYC and how does the online gaming industry benefit from it.
What is Know Your Customer (KYC)?
Know Your Customer (KYC) is an identity verification solution that helps different sectors to prevent fraud. The verification was performed manually but due to technological advancements, KYC is now performed digitally which is also known as the E-KYC. People no longer have to wait for days to get verified during the customer onboarding process. Know Your Customer verification is completed in the following steps:
- First, customers register for the verification on the company’s website for E-KYC.
- Government-issued ID documents are submitted for verification.
- Using AI models, documents are checked for forgery or folded edges.
- Next, face verification checks are performed to ensure live presence of the customer. This step helps in identifying spoof attacks and deep fakes.
- Finally, some organisations also perform consent verification checks. Customers have to submit a handwritten or typed note for this step.
As time-consuming as it sounds, digital KYC checks require only a few seconds to complete the process.
Benefits of KYC for the Online Gaming Sector
Online gaming sector has become the primary target of fraudsters for their illegal activities. Moreover, money laundering through online gaming is rising. Employing Know Your Customer (KYC) verification can help all businesses, especially the online gaming industry to combat frauds. Following are few benefits of the E-KYC for the online gaming sector.
Fraudster Identification
Identifying fraudsters is a challenge and due to incompetent identity checks, online gaming sector has become prfone to criminal activities. With the help of KYC, online gaming platforms can verify every player that gets in touch. If any fraudster uses fake documents or photoshopped documents will be identified before they can cause any issue for other legitimate players.
Minor Protection
Online gaming platforms are loaded with adult-oriented games that are not harmful for minors. Protecting them is a rising issue these days because kids use false information to surpass age verification checks. To successfully complete the KYC process, gaming sites require government-issued ID documents like driving license and national ID card. Minors will be identified on time and preventing access to AO games will not be a problem.
Better Compliance with Laws
The stringent laws from FATF and other regulatory authorities are meant to prevent fraudsters. However, without robust identity verification checks, it will be challenging for businesses to comply with the laws. KYC verification makes it convenient for the online gaming sector to comply with the laws.
Conclusion
All in all, fraudulent activities have significantly, especially during the pandemic. Every business needs robust systems to identify fraudsters and keep their business secure. With the help of E-KYC, companies can not only fight fraudsters efficiently but they can also simplify the customer onboarding process. Due to the increasing number of scams, the online gaming sector is facing numerous issues. Regulatory authorities across the world are in action and enforcing more stringent laws to combat criminal activities. With KYC, online gaming platforms can comply with the regulations effortlessly. Apart from all challenges, the biggest challenge is preventing minors from accessing online games. Thanks to age verification in the KYC system, the online gaming industry can keep minors safe.
Meta: Frauds in the online gaming sector are rapidly increasing. With the help of KYC, e-gaming platforms can fight fraudsters and protect the legitimate players.
