As a result of globalization, the sports industry has developed and undergone many positive changes. Some individuals show interest in placing bets whenever a sporting event takes place. Consequently, they continue to play the games actively. But in the COVID pandemic, the physical gaming sector faced a lot of ups and downs. So people moved to digital platforms to entertain themselves in lockdown.
The online gaming sector is growing at a very fast speed. The lack of gambling regulations encourages criminals to commit fraud. So, Several risks associate with money laundering and identity theft in this sector. Every gambling service provider must enforce KYP compliance to ensure online gaming safety.
Gaming Frauds – Everyone Should be Aware of Them
The games are receiving updates for online multiplayer. Due to online gaming, players can communicate and interact with each other online. Players can also use in-game voice chatting features in today’s games. Even mobile games now provide a variety of ways for players to play with one another. Given how convenient it is to interact with one another, there are a number of dangers that could completely ruin the experience. These risks are known as gaming frauds and are described below:
Phishing Attacks
The most common technique for deceiving players on online gaming platforms is phishing. This type of cybercrime involves contacting the victim through in-game messages or email. To entice players, the message contains a malicious link with an alluring title. For instance, the attacker may offer players phony discounts and in-game bonuses via the fake URL. Players fall for these bogus prizes and click on the link. This takes players to the cloned game platform. These fake platforms are used to collect the gamer’s passwords, IDs, and all other personal information. The absence of online gaming safety regulations encourages phishing attacks.
Use of Patches – To Improve Game Performance
The use of automated online tools for hacking and data collection puts gamers at risk. Cybercriminals advertise the installation of pirated software, known as “patches,” on gaming platforms to boost player performance. By doing this, the client-side gaming engine becomes infected with the files that begin collecting user data. It keeps track of the player’s clicks and keystrokes in order to delete their profiles. This is one kind of online casino fraud.
Low-cost In-Game Accessories
Fancy in-game items like weapon skins and distinctive character appearances and outfits are extremely popular among players all over the world. For the purpose of selling these resources at a discount, the attackers have built phony online marketplaces. With the help of hacked user accounts, they gain access to the gaming systems and offer players third-party referral links to purchase these add-ons.
KYC Verification for Online Gaming
The rise of online gaming platforms has generated significant revenue, particularly during the pandemic period. The high financial involvement within the gaming sector multiplies the risks. One of them is the rise in identity and gamer profile thefts. Additionally, these platforms are full of in-game resources that cybercriminals can use to launder money. With the help of instant gaming verification, fraud is effectively combated.
The gaming authorities adhere to KYC compliance to validate system users. Online gaming safety regulations like Know Your Player checks are the procedures that conduct a thorough gamers’ identity verification. The KYP check is carried out during the registration of a player in online gaming. Prior to interacting with other online gamers, newcomers must go through a thorough gaming fraud verification. The player’s real identities are evaluated with the KYC gaming compliance.
Checks for Age Verification
Online game providers have several methods for determining a player’s age. The gaming engine requests the user’s date of birth on the first try. This information is used to verify the age in accordance with legal requirements. The players are also prompted for their documentation in games with a mature rating. Gamers must upload images of their identification documents in order to verify them. AI-powered evaluation methods extract information from documents and then compare them to the initial age provided.
Customer Due Diligence (CDD) and Online Gaming Platforms
A user must have complete verification to play with other gamers. The majority of gaming companies track the players on their servers as part of their security process. Customer due diligence is used to confirm that the actual player is using the profile. Businesses must adhere to online gaming safety rules in order to improve the CDD process in the gaming industry.
Conclusion
Today, games are played professionally and generate a lot of money. The gaming industry is expanding daily as more people choose esports as a career. It is extremely susceptible to identity theft and money laundering as it grows to be one of the largest markets in the world. The implementation of online gaming safety regulations on esports platforms reduces the risk of online casino scams.
