Technological betterments have definitely brought a lot of convenience to life and everybody is enjoying tremendous benefits of it. The coronavirus pandemic fanned the flame of digitization and now almost everything is operating through virtual means. Nevertheless, fraudsters are also figuring out different ways of not only building their community stronger but figuring out new ways of attacking legitimate people. Cybercrime statistics have significantly increased over time. Thanks to Artificial Intelligence and Machine Learning algorithms, more and more sophisticated ways are being developed for fulfilling their malicious intent. All industries are constantly working on efficient ways of preventing fraud from their platforms. Unfortunately, all the businesses that operate online are prone to fraudulent activities.
The online gaming industry is one of the highest-grossing sectors yet it is not safe from criminal activities. Money laundering, identity theft, and account takeover fraud are very commonly observed here. Digital identity verification, especially document verification is crucial for the sector due to the same reason. Scroll down and read this blog to find out all about the scams in the gaming industry and how to document verification can help.
Common Scams in the Gaming Industry
Here are some of the common scams in the online gaming sector that you must know about:
Account Takeover Fraud
Information that is stolen from the platform can be used for account takeover fraud too. The player’s identity can be used for proving to the bank that the holder is legitimate and changing a few passwords is enough for taking over the account. Not only does the player lose money but the account can be used for transferring illegally earned money. Adding verification will only make the platform more secure for the players and increase credibility for new ones.
Also called friendly fraud, chargeback fraud occurs when a fraudster makes a transaction on an online gaming platform. Once done, the scammer claims back the money invested through the card issuer and the gaming platform cannot do anything about it because they are either located overseas or unregistered anywhere. Fighting back may cost them a fortune so many online gaming sites do not bother taking any measures and bear the burden of chargebacks.
Importance of Online Document Verification
Due to the rising scams in the virtual gaming industry, online document verification has become crucial. Document verification has several benefits for this sector and here are a few of them that might come in handy.
Enhanced Customer Experience
The traditional method of document verification is extremely time-consuming and the chances of human errors significantly increase. These few issues not only increase hassles for the employees but the customers are annoyed as well. This increases the drop-off rate. An online gaming platform cannot afford the loss of players at all. Hence, online means of document verification is essential.
Reduce the Hassles of Verification
Today’s fast-moving world does not have time for manual processes and traditional methods of document verification do not allow that. The hassles of verifying every document manually mean weeks for one customer. The hassles for employees increase. On the contrary, using the virtual method can make the entire process convenient and streamlined.
Cyberattacks are on the rise and there is an attempt for data breach every 39 seconds. Fraudsters will not stop until they get what they need. The online gaming sector can perform document checks for all the players so that none of the fraudsters are onboarded in the first place.
Comply with the KYC/AML Laws
The stringent regulations from the FATF and FinCEN make it extremely difficult for any company to survive. The online gaming sector has several restrictions for registering the business and complying with the identity verification requirements. Online document verification ensures that the platform follows all the guidelines religiously.
Summing It Up
It is the era of digitization and undoubtedly, technology has made our lives easier. Unfortunately, fraudsters are also figuring out better ways of messing with the players on online gaming platforms. However, there is a great way of dealing with fraudsters called online document verification. This not only helps gaming sites onboard legitimate people, but it also helps them filter fraudsters before they can cause any trouble. Moreover, it helps the businesses to comply with the stringent KYC/AML regulations.