.png)
As the world progresses towards a modern era, the online gaming sector has experienced a significant revolution. This sector has astonishingly impacted the financial market over the past few years. With this growth, many users have started to make virtual purchases through credit cards, such as buying in-game currency to win a level. However, such purchases expose them to identity fraud, restricting the growth of businesses selling these games online. Online gaming fraud is a process where scammers affect online gamers by exploiting their personal information for illegal monetary benefits.
The regulatory bodies need to ensure
that they direct the gaming operators to undertake an authentic online gaming
fraud detection process. This can secure players from scammers by limiting
their access to the platform, preventing fraud, and providing a seamless player
experience. By implementing such practices, the operators can certify the
onboarding of legal and verified players on the gaming platform.
Classifications of Online Gaming Fraud
With the passage of time, scammers are
devising new techniques to invade the gamer’s privacy. Such activities can
cause financial losses, damaged reputations, and legal consequences for gaming
operators. Some of the most common gaming frauds are stated below:
· Credit Card Fraud
This fraud occurs when the scammers
steal the gamer’s credit card information and use it for illegal purposes.
Using this information, they can create fake accounts, make illicit purchases,
and later sell these accounts on the dark web for hundreds to thousands of
dollars. These unauthorized transactions affect the gamers and harm the gaming
business’s reputation, leading to severe monetary loss.
· Credential Stuffing
Credential stuffing is a cyberattack
where the scammers steal the login details using automation software. They
crack account details and use them to sell the gamer’s account for in-game
currency, leading to illegal account takeover fraud. Scammers can withdraw
funds from these accounts and manipulate account information.
· Phishing Attacks
The scammers create a fake gaming
website that looks legitimate, then manipulate the gamer into entering their
account details. They use this information to undertake online gaming frauds. Another
way of phishing attacks is to trick gamers into downloading malware on their
devices, which can scam gamers by claiming to distribute the free version of
the game. By installing such versions, gamers could download malware on their
computers. This will allow scammers to steal their account’s identity and
passwords.
· Money Laundering
The online video game industry is at
risk of money laundering as it involves in-game monetary trades. Some video
games prompt the gamer to enter credit card information to make online purchases
using real money, and scammers can steal this information to undertake money
laundering actions.
Ways to Detect and Prevent Online Gaming Fraud
The regulatory gaming authorities have
implemented certain identity verification procedures to perform smooth
onboarding and to protect them from malicious activities. By doing this, game
operating companies can create a smooth authentication process for the gamer’s
security.
· Implement User Authentication
Gaming operators can prevent online
fraud by operating identity verification services in the form of face,
document, and age verification. They can also implement multi-factor
verification that requires the players to submit additional identity
information. Companies can include anti-money laundering screening checks to
secure the players from the harms of money laundering.
· Ensure Game Security
Companies need to ensure that they use
additional security software so the players can enjoy their gaming services.
Software like firewalls and SSL Encryption can allow the operators to filter
out illegal traffic. These can ensure that all sensitive login and credit card
information is secured. Operators should perform regular security audits that
help them identify any flaws in the system.
· Make Verified Payments
Companies can enhance their security by
adding certain verification steps during the checkout phase to confirm that the
legitimate cardholder is making the purchase. They can address verification
system checks to compare the billing address with the cardholder’s information
used in the transaction.
· Monitor User Behavior
The gaming operators can monitor the
user’s behavior through fingerprints and email profiles. They can also conduct
IP analysis for user verification. Certainly, the legal players would probably
use older email addresses linked to their social media, and illegal users could
use unlinked email addresses that may have been created for committing
fraud.
· Maximize Machine Learning Use
Gaming operators can use machine
learning and AI to identify fraudulent behavior. Using the latest technology,
operators can target and block any account payment fraud and prevent
chargebacks. These systems can analyze the user account and separate the
illicit player from the legitimate one. The AI-powered programs can detect the
activities of fake accounts and flag illegal purchases.
Summing It Up
The online gaming sector has faced
significant losses over the past few years. But with time and technological
advancements, gaming operators can avail machine learning and AI-powered
identity verification services to combat online gaming fraud. Through these
services, they can provide secure KYC services to gamers to streamline their
gaming experience and improve the company’s reputation.
