Online gambling is a very risky activity and it becomes even riskier when there is fraud involved. It can make the digital platforms unsafe for the users. Similarly, online business platforms and gambling sites have a number of vulnerabilities so they are attractive places for hackers and fraudsters.

The availability of advanced technology has enabled fraudsters to use complex methods to achieve their goals. They can easily carry out identity theft and credit card scams. When it comes to the financial growth of the gambling sector, it is reaching trillions of dollars. To protect digital gambling places, there is a need for automated digital systems. This is where ID Verification will help the gambling industry safeguard its platform. 

Online Gambling Fraud – What are Some Common Ways?

Different Online Accounts

This is an old-age strategy. Fraudsters create multiple accounts on gambling sites to conduct online gambling fraud. These accounts have fabricated credentials that are used for different purposes. One purpose is to win on the gambling platform. They use multiple accounts to lose using some and to win using others. It helps them collect the winning money from sinning accounts while deliberately making others lose it. In this way, scammers are at an advantage.

Credit Card related Frauds

It is a common form of online gambling fraud across all digital platforms. The fraudster uses stolen data of clients to win their bets and raise the value of their accounts. It is a kind of scam that authorities can catch quickly and scammers face hefty fines for it. 

Money Laundering 

It is the duty of digital gambling service providers to make sure that their platforms are not involved with money laundering scams in any way (i.e. no online gambling fraud). A limitation for them is that there are huge sums of money involved that make it harder to spot fraudulent cases. But it is a perfect opportunity for cybercriminals to hide their black money. 

Additionally, it is the responsibility of the gambling service providers to restrict the entry of minors on their online platforms. It means that they have to determine the age of their clients. It should be clear that age verification of users is easier in physical casinos but it is a complicated procedure on online platforms. Consequently, the staff members can use facial recognition technology to verify the identity and ages of the clients (which helps minimize online gambling fraud). 

ID Verification – Is it Effective for Reducing Online Gambling Fraud Cases?

In the past, digital gambling service providers had to face financial losses and other penalties because they did not have proper authentication procedures in place. For instance, a gambling platform – 888 Holdings – in the United Kingdom had to face a fine of $10 million because it did not have strong KYC procedures in place. Businesses that want to protect themselves against fraudulent activities should implement a KYC system immediately. Governments have emphasized such protective measures worldwide for companies to fight online gambling fraud cases. It means that they should play an active role in the identity verification of their clients. The verification procedures will facilitate them in age authentication as well as identity certification effectively. 

The application of a strong KYC system helps businesses in preventing chargeback fraud and identity theft crimes. A strong digital authentication system can facilitate businesses in effective identity authentication (for reducing online gambling fraud). If a business wants to avail of identity verification services for online gaming, it can be done in the following ways:

• Document Authentication
• Age Certification
• Facial Recognition 
• AML screening

The Impact of AI-backed Authentication System on online gambling fraud

AI-backed Verification procedures are available for financial companies. Similarly, the latest technology can fulfill the authentication needs of digital casinos. They can easily integrate the technology with their existing software and it will not create a problem for them. The availability of an automatic authentication procedure has multiple benefits for the users. It can help them deal with online gambling fraud cases efficiently. Businesses will be able to show compliance with the guidelines and make substantial profits. There is also the pressing issue of age verification in gaming. The staff members can deal with the issue using document and facial verification technology. 

What are the Latest Techniques in Advanced Verification Procedures to Reduce Online Gambling Fraud?

There is a liveness detection feature in the advanced technology that can help with in-depth 3-D analyses. Some elements like image distortion checks, three-dimensional detection methods, and texture analysis play an important role in real-time verification. The process is effective because it cross-checks the information with the previously submitted records. It means that the machine learning algorithm checks for different points in the digital image and compares it to the images on official documents. These steps are important for declaring the legitimacy of the identity and deterring spoof attacks. 

Conclusion

To sum up, for better business operations on online gambling platforms, there should be the implementation of an advanced identity authentication solution (i.e. to combat online gambling fraud). It will help the gambling service providers to adhere to AML/KYC compliance. The regulators should also play their role and use creative ways to safeguard the gambling industry and its users altogether.