Online gaming industry ramps up defenses against fraud

In recent years, the surge in online gaming activity has been paralleled by a rise in fraudulent activities within the industry. Exploiting vulnerabilities in fast-paced, high-stakes environments has become a lucrative endeavor for fraudsters. Socure recently revealed that an online gaming provider embarked on a mission to enhance its identity verification processes across its product offerings to bolster its defenses against fraud while streamlining the onboarding process for legitimate users.

Meanwhile, recent data from AU10TIX‘s Q1 2024 Global Identity Fraud report has shed light on the escalating threat landscape facing the online gaming industry. With a 250 percent increase in fraud targeting the sector compared to the previous quarter, the report underscores the urgent need for more identity verification measures within the industry.

Among the notable findings, bonus abuse emerged as a predominant fraud tactic, driven by the creation of multiple accounts to exploit promotional bonuses. Analysts anticipate that increased regulatory compliance and the adoption of comprehensive KYC and age verification software will be crucial in mitigating this threat moving forward.

While the online gaming sector grapples with escalating fraud risks, the payments industry remains a prime target for identity fraudsters, accounting for 62 percent of all attacks. With the absence of stringent regulations leaving the sector vulnerable, AU10TIX emphasizes the importance of strengthening KYC, KYB, and AML protocols to thwart fraudulent activities effectively.

Socure’s approach to identity verification, according to the company, provided the undisclosed gaming firm with a tool against emerging threats, including those posed by generative AI technologies like deepfakes.

Data from Socure finds that the best identity verification software uses predictive machine learning to recognize trustworthy players without making players wait for identity checks or manual reviews.

The online gaming industry is experiencing explosive growth, with a recent report by Newzoo estimating the global gaming market to reach $218.7 billion by 2024.

Article Topics

AU10TIX  |  digital identity  |  fraud prevention  |  gaming  |  identity verification  |  KYC  |  onboarding  |  Socure