The gaming business is welcoming worldwide players for the experience of online services, but it is also attracting the interest of crooks. These identity thieves seek fast and less regulated ways to launder their money. Similarly, by utilizing gaming and payment schemes, these scammers are able to effortlessly exploit innocent gamers while causing negative consequences for online platforms.
The gaming business is seeing remarkable expansion by utilizing innovative gambling compliance and player onboarding strategies. While 55% of people choose smartphones over desktops, online platforms must offer efficient and safe processes. Gaming scams are becoming more common as virtual reality becomes the new normal. The blog discusses major gaming scams and how AI-powered IDV solutions might aid in their detection.
Fraud in Gaming Industry – A Brief Overview
In-app purchases, remote onboarding, and premium content are just a few of the innovations that the gaming industry is developing. This has other effects besides helping online gaming platforms draw more players and boosting their revenue. Online casino fraud is rising due to digital payments, and using fake identities puts honest players at risk of data breaches. Similarly, when making in-game purchases, people give their payment information and Personally Identifiable Information (PII).
Online platforms offer smooth payments and enabling. But as the number of players grows, so does the amount of confirmation information these sites have. As a result, there are more opportunities for gaming scams, and criminals have a tempting target in the sector. Therefore, online platforms need more reliable identity verification technologies to prevent criminals from signing up.
Know Your Player – To Combat Gaming Scams
However, the relief came at a cost. The con artists soon became aware of greater audience participation on gaming websites. On top of that, they found holes in their security measures and seized the chance. At this precise moment, they intervened with their disruptive tactics, disrupting the user’s safe gaming experience.
Apart from the increased audience engagement, what drew fraudsters in was the lack of effective age verification methods, which allowed children to access gaming material that was intended for adults only. Although this industry was never resistant to scammers, the pandemic’s weaknesses contributed to an increase in gaming scams. As a result, in light of the volatility in this sector, local and worldwide regulatory agencies established measures for online gaming safety and issued strong regulations requiring gaming sites to have sufficient age verification methods. As a result, the Know Your Player (KYP) protocols enhance online gaming safety by requiring good client due diligence.
The Most Familiar Gaming Scams
The following gaming frauds occurred during the COVID pandemic as a result of inadequate KYC implementation in online gaming verification:
- Fake Cheat Codes and Gaming Tips
One of the most popular scams involves con artists giving phony cheat codes to gamers who are eager to get them to level up. Professional gamers constantly search for cheat codes to help them finish levels quickly. For this specific reason, they frequently participate in online message forums. They fall prey to the fake cheat codes used by con artists at this point. As soon as the money reaches the con artists, they either stop sending the codes or send ones that have been compromised by malicious software.
- Credential Stuffing Attack
Credential stuffing attacks are another approach that scammers frequently use to disrupt gaming websites. Users frequently use the same login information across multiple online accounts, making it very simple for scammers to steal players’ usernames and passwords. The scammers are able to access the credentials thanks to a data breach that simultaneously exposes a large number of usernames and passwords. They then use the login credentials obtained from various online platforms after receiving them. The dark web is another place where scammers frequently get these.
- Misuse of Bounces
Free spins, new deals, and sign-up promotions all contribute to extra bonuses for players joining the online gaming community. This makes e-sports platforms more attractive to users and makes their services more widely available. However, innovative measures come with a significant threat to gaming scams. Bonus abuse can result in substantial financial loss as fraudsters use sophisticated methods to create false profiles and get around identification checks. Tools for preventing online gaming scams are essential for e-sports platforms.
- Phishing Scams
Phishing scams have been the most frequent cause of interference with gaming websites’ regular operations. To trick the players into providing their login information, con artists use these specific gaming scams. This is primarily done through emails asking for password changes, which are ways of obtaining account information.
In a Nutshell
Due to the growing threat of gaming scams, online platforms are compelled to implement cutting-edge methods for identifying players. Streamlining user experiences is made possible by in-app purchases and remote onboarding. E-sports platforms are protected from scammers with the use of real-time selfie-based identification and automated document validation.