The sports industry is facing a considerable increase in organized crime, such as money laundering after going digital. The ease of online betting, remote onboarding, and in-app purchases are shifting cybercriminals’ attention. Due to lax player id verification and the high risk of synthetic identity fraud, the gaming sector is coming under strict regulatory supervision. The loopholes within AML/KYC control loopholes leave enough room for criminals to exploit the sports industry.
After retaining more than 2.5 billion global players, online gaming platforms are predicted to cross $256 billion by 2025. Regulatory authorities are subjecting the e-sports industry to various requirements for combating criminal threats. This blog provides insights into types of fraud gaming platforms experience and how know your player solutions help counter them.
Know Your Player Services – Countermeasures for Various Fraud Risks
Many regions have legalized online betting while making it a multi-billion project. Simultaneously, this ease of converting illicit funds into clean money is grasping the attention of criminals. They take advantage of inadequate player id verification checks, create synthetic identities, and register fake profiles. Furthermore, lax AML/KYC regulatory supervision also paves way for criminals. They target high-risk countries to launder their proceeds of crime and escape the due diligence process.
Synthetic identity fraud, high risk of organized crimes, cybersecurity threats, and other malicious activities drive regulatory scrutiny for online gaming platforms. Global watchdogs are urging the e-sports industry to bring in efficient player id verification solutions for restricting fraudsters’ access. To provide a secure gaming environment, e-platforms require more robust IDV solutions. Otherwise, they will have to experience a further dramatic increase in criminal threats.
Due to the popularity of certain games such as baseball, American football, betting, and cricket, the e-sports industry is undergoing continuous fraud risks. As identity verification for online gaming is providing convenience through digital onboarding and e-payment, cybersecurity threats are also skyrocketing.
The e-sports industry is generating high revenue by offering ethical betting, in-app purchases, and sponsorship deals. This requires them to incorporate better player id verification solutions to ensure legitimate games are availing of the benefits. Otherwise, online platforms will have to face the following types of fraud:
High Risks of Organized Crimes
The ever-growing popularity of the e-sports industry is grasping the attention of organized crime syndicates. In order to wash their dirty money and make it look legit, fraudsters create fake profiles for engaging in ethical betting. Similarly, online platforms are also facing other malicious activities, such as corruption, smuggling, embezzlement, transaction scams, identity theft, and terrorist funding.
The lack of inefficient player id verification checks is further making e-sports platforms a major attraction for money laundering syndicates, drug cartels, and other mafia groups. Moreover, regulatory authorities are enforcing stricter regulations on gaming sites to restrict criminal activities. Therefore, the e-sports industry needs to bring in know your player solutions for identifying and countering fraudsters’ intentions. AI-powered IDV services help online platforms ensure gamers are present at time of onboarding and have never been a part of any criminal activity.
Illegal Betting Cartels
To ensure ethical and legal betting, the e-sports industry has formed certain syndicates that have global individuals onboard. These players have common interests and hold genuine identities with no criminal records. Therefore, fraudsters pitch to these communities for laundering their illicit funds. Moreover, minors try to become a part of these syndicates to earn instant money. Therefore, age verification in gaming has become a liability for online platforms to protect children from falling into the trap of criminals.
Online gaming platforms require AI-powered player id verification services to further eliminate compromises on their integrity. For providing a secure betting environment to legitimate gamers, IDV solutions are the e-sports industry promising bet.
Money laundering is another prevailing threat the s-sports industry is undergoing. Criminals use synthetic identity fraud to escape player id verification checks and create fake accounts. Seamless online transactions are further making it challenging for online platforms to draw a line between legitimate gamers and imposters.
The high risk of criminal activities is compelling the e-sports industry to integrate adequate online gaming verification for KYC/AML controls. AI-powered IDV tools authenticate gamers by employing real-time identification. It also provides player id verification along with liveness detection that efficiently validates the identity claims of individuals.
Online player id verification services are driving authenticity for the e-sports industry by providing real-time identification of individuals. With robust document scanning, facial feature analysis, and background cross-checks, e-gaming platforms can better ensure a safe environment. AI-powered IDV solutions enable them to access global sanctions, PEP, and other watchlists to assess users’ risk factors during digital onboarding. Online gaming verification tools not only help the e-sports industry stay compliant with AML/KYC regulations but also provide enhanced security to players.