As well as providing benefits for businesses, KYC in gaming also provides benefits for customers, too. Much like how a reputable company must provide its users with fair games and a secure gaming environment, these companies must also show their users that their personal information is being handled appropriately and then safeguarded.
Those involved in the online gaming industry must comply with ever-changing regulatory requirements. However, as well as complying with these regulations, they must also be able to onboard customers quickly and provide a safe, secure environment for gamers.
That said, KYC in gaming is incredibly important and cannot be overlooked. Not only does it protect the company from bad actors, but it also helps protect users and their private information. As a result, KYC in gaming makes the online gaming industry a safer place for everyone.
Companies in the online gaming industry are legally obligated to verify a user’s identity, age, location, and source of funds.
By carrying out these checks, a gaming company can stop bad actors and fraudsters from accessing their platform. Plus, they can also stop their services from being used to launder money.
As well as providing benefits for businesses, KYC in gaming also provides benefits for customers, too. Much like how a reputable company must provide its users with fair games and a secure gaming environment, these companies must also show their users that their personal information is being handled appropriately and then safeguarded. Due to this, companies must demonstrate to customers that their processes aim to:
Online gaming providers, online casinos, and online gambling platforms deal with a high number of financial transactions on a daily basis. Due to this, any business in this space is targeted by money launderers.
In this regard, online gaming businesses must be aware that they are particularly susceptible to money laundering because they operate entirely online. This means that, without putting proper onboarding, customer monitoring, and KYC processes in place, high-risk customers can set up an account and play on a platform.
As a result, when these businesses fail to put adequate KYC for gaming processes in place, criminals find it easy to exploit their services. For example, between 2005 and 2008, The Corozzo Network ran illegal gambling and loan-sharking services through four online gambling sites, laundering more than $10 million in the process. They achieved this by deliberately losing games and then claiming ‘clean’ prize money.
As technology advances, the challenges faced by online gaming providers will only mount further. This is because technology is currently enabling criminal actors to create schemes that are increasingly complex and difficult to spot. For example, thanks to the introduction of virtual credit cards, prepaid mobile credit, and alternative payment gateways like PayPal, micro-laundering is now easier than ever. It is also becoming increasingly difficult to spot. If companies do not respond to these ever-evolving challenges, then they may become vulnerable to bad actors.
Essentially, processes for KYC in gaming act as protective measures for online gaming providers. This is because, by helping a business identify its customers, verify the identity of the individual involved, and assess the level of risk each customer poses, KYC checks can identify bad risk actors and high-risk users.
Following this, these users can be flagged to authorities, monitored on a continuous basis, or banned entirely. This means that, by introducing strict KYC checks, online gaming and gambling companies can mitigate the risk of becoming vehicles for money laundering. This is because high-risk individuals are flagged before they’re given access to the service.
On top of this, robust digital KYC processes can also help businesses in the industry avoid large fines and reputational damage. If it’s discovered that a business has been used to launder money, then regulators have the power to administer huge fines. Previous examples have run into the tens of millions of dollars. On top of this, because customers think their money and information isn’t safe, they leave the business and take their custom elsewhere. Often, the business then does not recover from this level of financial and reputational damage.
Our gaming identity verification tool can help you welcome honest players from across the world. With an unprecedented document database and a frictionless user experience, Veriff helps you sign up players quickly and conveniently.
With the help of our tool, you can conquer new markets, keep regulators happy, and onboard new players quickly. As well as ensuring KYC compliance and fraud prevention, you can also build trust with your customers and ensure that honest players find it easy to access your service.
With the help of device and network analytics, automated ID review, biometric authentication, and liveness checks, you can lock out fraudsters. But because the identity verification process is secure and simple, you’ll also have no problem assisting new players and showing them that their money and data are safe.
Interested in learning more about how our gaming identity verification tool can help your business? Get in touch with our KYC compliance experts today. We’d love to explain more about KYC in gaming and outline how our solutions can safeguard your business and its customers.