Online gaming is experiencing tremendous growth. But with the high volume and velocity of money moving through the market, fraudsters see a lucrative opportunity, writes Michael Goonan, Senior Account Executive at Socure.
According to CNBC, “While overall U.S. online fraud attempts climbed by 17.1% from the second quarter of 2020, gaming, travel and leisure saw triple-digit spikes.”
Even if fraud does not appear to be a significant problem right now, just the looming threat of fraud degrades trust between operators and players. After all, if you can’t establish trust, you end up limiting profitable players’ handles simply because you can’t confirm that they are who they claim to be, which then artificially limits your Gross Gaming Revenue (GGR).
With these high stakes in mind, your fraud prevention can’t be left up to outdated manual or legacy strategies.
The two-part trust equation
Establishing trust with a new player at onboarding requires that they pass both KYC and fraud checks before anything else. With an online KYC check, you can confidently determine that qualified player identities are real. But even after your online KYC verifies that an identity exists, you still need the second part of the trust equation: a robust online fraud solution that can prove that an identity is actually owned by the player claiming it.
Going deeper on why the two-part trust equation is critical: even if your KYC is aligned to regulatory requirements for compliant identity verification, players can still submit fraudulent identification details. The result: a fraudster gets past KYC by hiding behind a real identity, but that identity doesn’t actually belong to that specific player. Here, a sophisticated online fraud prevention solution is again necessary to complete the equation and ensures that only the most lucrative and trustworthy players are allowed on your platform.
Trust is key to revenue growth: Socure is key to trust
Socure’s best-in-class online fraud prevention solution provides the most extensive data matching available, including feedback data from a broad range of customers to indicate whether an identity has been used to commit fraud in the past. With the largest pool of known good and bad identities to verify against, Socure utilizes a broad array of data sources across each player’s entire identity, including email, phone, device, address, IP, geolocation, DMV, insurance data, and more.
Socure delivers the most accurate KYC, identity verification, and fraud risk prediction solution by applying in-depth data science to determine identity. With Socure enabling an in-depth, two-part trust equation, operators can fully trust players, reward them with higher handle limits, and optimize lifetime player value.
