The gaming industry is a platform that attracts fraudsters to commit fraud in many ways. Fraudsters are always looking for less controlled platforms to launder their money. The main objective of the gaming industry is to allow players around the world to connect with other players remotely. But these scammers are effortlessly exploiting innocent gamers and are making things complicated.
On the other hand, the gaming industry is developing remarkably. Pocket-friendly devices such as mobile phones are preferred by players over gaming consoles. Using mobile devices, games can be played anytime and anywhere. Scams are becoming more prevalent as the use of virtual reality increases. This blog will discuss how artificial intelligence and machine learning-based identity online game verification solutions can assist in tackling Gaming frauds.
Common Gaming Frauds in the Industry
In modern times, Virtual Reality (VR) has captured the gaming industry and plays an important role in it, but other examples like remote onboarding, in-app purchases, etc, are also present. It helps in generating income and attracts more players. Players are required to enter their payment data and personal information while making in-game or in-app purchases.
The chance of gaming frauds increases as online platforms accept transactions in real-time. It is really attractive for fraudsters. This is why the gaming industry must implement efficient and instant gaming verification tools to discourage personal and financial data loss.
Manipulation of Legitimate Gamers
Legitimate gamers are forced to disclose their personal information as fraudsters cause a variety of problems using different identities. Similarly, fraudsters can scam innocent gamers by showing fake websites and promotions to unlock different ranks in order to get their payment information. It eventually leads to blackmailing.
So, online platforms must implement effective gaming checks to prevent gaming frauds and restrict player abuse.
Credit Card Fraud
Credit card fraud aka True fraud occurs just like a traditional scam. It is a quick way of scam and the victims may not even know about it. The fraudsters steal the players’ credit card information and use it to raise the value of the account. This practice involves skin purchasing and in-game credits.
These types of accounts are worth hundreds and thousands of dollars and are sold to trading sites. On the other hand, information about stolen credit cards is sold on the dark web. Unauthorized transactions lead to chargebacks and a large number of chargebacks is very harmful to any victim, apart from scammers.
Account Takeover Fraud
In the gaming industry, account takeovers are very common gaming frauds. The gamers, who have spent hundreds of dollars in order to achieve higher levels, are mostly the victims of it. Automated software is used through which fraudsters try to find a combo of usernames and passwords. This term is known as Credential Stuffing.
The buyers of these accounts are mostly new gamers who are looking for a shortcut or an easy way to upgrade their accounts.
High Returns
High returns are more likely to harm the industry’s small players than the major marketplaces and retailers. These bettors or players are the ones who place small bets or have no plans to make in-game payments. There are several online marketplaces that provide paybacks for people who return a product. Basically, it is an online gambling fraud in which fraudsters use the personal and payment data of legitimate players to claim fake refunds.
The facility of in-game transactions attracts more players and increases revenue, but it also increases gaming frauds. This is why companies must ensure compliance with KYC/AML gaming verification in order to confirm players’ identities before digital onboarding.
Fake Chargebacks
It is a gaming fraud in which fraudsters impersonate financial authorities and contact legitimate gamers. This scam is also known as friendly fraud as players are forced by the fraudsters to provide their credit or debit card details. It also allows these fraudsters to get fake chargeback claims for in-game purchases they never made.
Due to the rise in gaming frauds, tight payment screening and permission checks are being implemented by regulatory agencies. The integration of a strong gaming verification system is a must in order to reduce unauthorized chargeback claims.
Prevention of Gaming Frauds
Prevention of online gaming frauds is a must for companies to maintain their credibility in the market. Enhanced data security can be ensured using AI and ML-powered systems.
Here are some steps to prevent online gaming fraud:
- Understand the behavior of fraudsters
- Two-factor authentication should be used
- Always keep an eye on unauthorized or suspicious login
- Use Know Your Customer (KYC) verification checks
Conclusion
Online gaming frauds are increasing rapidly and companies are implementing new procedures to identify real players. AI-enabled IDV solutions must be implemented in the gaming world to enhance security and privacy policies. The use of real-time authentication and automated document validation is necessary for online gaming frauds in order to protect esports platforms from suspicious and criminal activities.