Due to the apparent high risk of identity theft and money laundering in the gaming industry, all gaming service providers must now know your player. The increase in online gaming platforms, especially during the pandemic, provides a lot of money to this business. Because of the considerable financial investment, the risks in the gaming business are doubled. One factor is the increase in identity and gamer profile theft. These networks are also replete with in-game tools that fraudsters may employ to launder money. With Know Your Player (KYP) compliance, fraud may be eliminated progressively and efficiently.
Fraud in the Gaming Industry
For the purpose of improving the user experience, multiplayer games are updated frequently. Online gaming safety aims to promote network interaction and player communication. Other tools provided by modern games include voice chat capabilities within the game. In today’s mobile games, players have various options for social interaction. Working together makes things much more straightforward, but some risks might make the game impossible to play.
Phishing Attacks
Phishing attacks have recently become the most popular way to lure players onto gaming platforms. Attacks involving phishing involve sending the player being scammed an email or an in-game message. The description includes a malicious URL with an engaging title to draw players in. As an illustration, the attacker might pose as a retailer and send players phony discounts and in-game rewards through fake links. By clicking that link, a player voluntarily participates in other players’ fraudulent activity. The link takes users to a website where a game copy is available. The purpose of the fake platforms is to gather passwords, user names, and any other information that can be used to identify a user.
Enhancing Game Performance with Patches
Automated online tools for data collection and breaches place gamers at risk. Cybercriminals offer to install pirated software on gaming engines in order to improve players’ performance. It keeps track of the customer’s clicks and keystrokes to steal their login information for their profile.
Affordable In-Game Accessories
Expensive in-game accessories like weapon skins and unique character designs are extremely popular with gamers all over the world. The attackers have created bogus online markets with the intention of selling these resources for a lower price. They gain access to the gaming systems using stolen user accounts, at which point they present players with links to third parties where they can buy these add-ons.
Ensuring Online Gaming Safety with KYC
The gaming authorities adhere to KYC compliance (Know Your Customer) in order to verify system users. The know your player process entails carefully identifying clients and verifying their identities. When a player registers, Know Your Player (KYP) checks are performed to verify their legitimacy. The system restricts the players from joining platforms, that do not meet the requirements due to KYC gaming regulations compliance.
Age Verification in Gaming Check
The user’s age is verified to guarantee that the gamer is of legal drinking age. Businesses use a variety of ways to determine a customer’s age. The game engine prompts users to input their birthday on the first try. The system utilizes this data for age verification in compliance with legal regulations. Before being able to access games with an 18+ rating, gamers must provide their legal documentation for verification. After the final confirmation of the documents, the system allows the player to play the game. An AI based OCR system extracts data from uploaded records and compares it to the client’s age at the onboarding time.
Gaming Industry and Customer Due Diligence
The player needs complete verification before they can play with other players. Most gaming organisations monitor players’ activities as part of their due diligence processes. Different industries, like the gaming sector, use identity verification for online gaming with CDD processes to confirm their players. Businesses must adhere to the know your player rules to improve the CDD process in the gaming industry.
Biometric Verification
The critical step in the CDD procedure is player verification using a biometric system. It conducts several gaming checks, such as liveness detection and face recognition, to verify the legality of the player.
In Short
Individuals nowadays utilize online gaming as a job to earn a good living. As more users choose esports as a job, the gaming industry expands every day. The casino business is among the largest around the globe. Money laundering and identity theft are serious dangers. E-gaming platforms increasingly use Know Your Player (KYP) compliance to safeguard their members from cyberattacks. Customer due diligence monitors the players regularly through background checks and digital verification to ensure that only the appropriate individual can access the player’s profile.