The gaming industry is attracting hackers and scammers in many ways. Fraudsters always target less controlled platforms to launder their black money. The gaming industry aims to allow gamers worldwide to connect remotely. However, scammers are continuously exploiting innocent players by making things more complicated.
On the contrary, the gaming sector is always under development. Pocket-friendly gadgets like smartphones are much more preferred by players over bulky gaming consoles. With the help of pocketable devices, games are playable at any point and time. Fraud and theft are increasing with more use of virtual reality. This blog discusses how AI and machine learning-powered gaming fraud verification solutions help in tackling gaming frauds.
Industries’ Most Common Gaming Frauds
Virtual Reality (VR) is capturing the gaming industry at an exorbitantly high speed and plays an important role in modern games. However, there are other terms as well, including digital onboarding and in-game purchases. VR can be extremely beneficial to generate income and attract more gamers. However, players must enter payment details while executing in-game purchases.
The chances of gaming frauds significantly expand as digital platforms are capable of accepting transactions in no time. Thus, it attracts more fraudsters. So, the gaming sector must utilise reliable and instant gaming verification technology to discourage crucial financial data loss.
Manipulation of Legitimate Gamers
Legitimate gamers are forced to enter their personal information as hackers or scammers cause several hurdles using different identities. Similarly, fraudsters target naive gamers with the help of phoney websites to unlock additional ranks to get their payment information. It ultimately leads to blackmailing.
So, online gaming platforms must incorporate efficient identity verification for online gaming to stop fraud and restrict player abuse.
Credit Card Fraud
Credit card fraud also termed True fraud is a quick way of scamming victims, without the chance of letting them know. As the name suggests, fraudsters steal players’ credit card details and use them to raise their account value. Moreover, it is a practice which involves tier unlocking and in-game credits.
These accounts cost hundreds and thousands of dollars and are available for purchase on different trading sites. Furthermore, information about stolen credit cards can be bought from the dark web. Illicit transaction leads to chargeback and is very harmful to any victim, apart from fraudsters.
Account Takeover Fraud
In the gaming sector, account takeovers happen very often. Gamer, who has spent hundreds of dollars for the sake of achieving higher levels, is primarily the victim of it. Numerous automated software helps fraudsters to find a combo of user IDs and passwords. This term is known as Credential Stuffing.
The customers of these IDs are mainly new gamers looking for a quick way of upgrading their accounts.
High Returns
High returns harm the industry’s small players more than the primary marketplaces and vendors. These players place small bets and don’t bother to make in-game payments. Several online marketplaces offer paybacks to those who return a product. Moreover, in an online gambling scam, fraudsters exploit legitimate gamers’ payment data and claim fake refunds.
The ability to perform in-game transactions boosts revenue and attracts more individuals. On the contrary, it increases gaming frauds. Thus, businesses must include online gaming verification with KYC and AML to ensure players’ uniqueness before digital onboarding.
Fake Chargebacks
It is a scam in which crooks simulate authentic financial management and reach real players. This scam is also termed “friendly fraud” because individuals are forced to enter credit card details. Additionally, it allows scammers to receive phoney chargeback claims for in-game purchases.
Due to the rise in gaming fraud, tight payment screening and permission checks are becoming more essential for regulatory agencies. The incorporation of a robust gaming verification digital system is a necessity to reduce unauthorised chargeback claims.
Prevention of Gaming Fraud
It is an essential process for companies to boost their market credibility. Moreover, enhanced data protection can be ensured using AI and ML-based systems.
Here are some steps that help in preventing online gaming fraud and applying gaming compliance:
- Understand Fraudsters’ Behaviour
- Utilisation of Two-Factor Authentication
- Monitor Unauthorised or Suspicious Login
- Employ Online Gaming Verification with KYC
Conclusion
Online gaming frauds are happening every minute and businesses are bringing new techniques to identify genuine gamers. AI-based IDV solutions can be very beneficial in the advanced gaming world to boost security and privacy policies. The utilisation of real-time validation and automated document verification is essential for online gaming scams to rescue esports platforms from fishy and criminal activities.
