The online gaming industry in India will reach $2.8 billion by the end of 2022. According to a new report by Boston Consulting Group and Sequoia, the industry is supposed to significantly increase to more than $5 billion by 2025. In 2019–20, Indian gaming beat the development of TV, OTT, and social media platforms, making another record. As per EY, online gamers in India grew by 8%, which is from 36 crores in 2020 to 39 crores in 2021, and will cross 45 crores in 2023. The following are the main factors driving development: expansion of mobile users and networking capabilities; digital payments; integration of cloud, applications, and social networks; and local gaming platforms are the main factors driving development.
As the craze of online games and earning cash rewards is just expanding, fraudsters and cybercriminals are not far behind in creating unlawful gains and destroying the experience of authentic players. From making false bets to using stolen IDs bought from the dark web to programming bots for affiliate cheats, various kinds of online fraud have come to the fore. These frauds get heightened during the pinnacle seasons like the IPL, World Cup, etc., as additional players bet online.
The top rip-offs in pay-to-play gaming
- Multi Accounting: Many users create numerous accounts using fake or stolen IDs to claim sign-up or welcome rewards, bringing about reward misuse and deceitful play. This makes the financial health of the business go south and results in reputational harm inside the players’ community.
- Affiliate Fraud: Many platforms provide user referral rewards to encourage new players to join. Then they join the reference programs and make the conversion using stolen IDs and credentials bought from the dark web. Further, bots are modified to automate the process at scale. This sends junk traffic to the platform and disintegrates promoting financial plans.
- Chargeback Frauds: Chargeback fraud is a typical fraud in online gaming as well as across every online business. When a bank identifies an illegitimate transaction made by a user using stolen credentials, the business needs to get through chargebacks and fines.
- Tax evasion: Because there are stakes involved, fraudsters use platforms to launder illegal gains. Organizations should investigate tax evasion schemes, identify suspicious accounts, and ensure that transactions are made from checking accounts.
- Underage Playing: Underage gaming is completely restricted to pay-to-play gaming and can prompt reputational and administrative dangers. Age confirmation is vital to onboarding age-appropriate users and keeps minors from gaining unlawful admittance to the platform.
- Location Spoofing: Due to the high volume of cross-line traffic, checking gamers’ locations on a large scale becomes challenging. As infringing provincial limitations by masking local is normal for fraudsters nowadays, address checking becomes essential to comply with respective state regulations and confine users from a prohibited state.
Because of the universality of gaming misrepresentation, including tax evasion, the industry has been on the radar of regulators. To prevent misrepresentation and protect the interests of the platform as well as players, gaming organizations should consent to anti-fraud regulations like Know Your Customer (KYC) and Anti-Money Laundering (AML). The AI-powered KYC check frameworks are significant here to forestall illegal tax avoidance, location spoofing, underage playing, and other cheats.
role of verification in online play to play gaming.
The ascent of the dark web and data breaches have made it simple for fraudsters to gain admittance to personally identifiable information. What’s simpler than buying or taking IDs is forging them to avoid the KYC process and make illicit purchases.
Hence, gaming organizations should confirm players’ and bank account details, and conduct leadership background and criminal record checks to remain consistent. With the assistance of AI-powered authentication and onboarding solutions, organizations can guarantee identity verification progressively and filter out a taken/modified ID right at the section of a player on a platform.
Why is a smart onboarding and authentication solution important?
Combating gaming cheats and guaranteeing consistency with KYC and AML guidelines isn’t the challenge that internet gaming organizations face. In this speedy world, they should likewise live up to the expectations of current players who need to make records and play for pay-to-play rewards without going through an extended onboarding process.
An extensive confirmation process to approve age, address, and identity can become exhausting for players and shoot up drop-out rates. Platforms additionally risk losing users to contests. Consequently, it becomes significant to work out some kind of harmony between defending their business and further developing the player experience for future development and loyalty.
AI-powered authentication solutions are the answer.
To make player onboarding future-proof, a brilliant onboarding arrangement is required that can deal with a range of checks, for example, identity confirmation, age and address checks, KYC/AML checks, and more. For example, biometric identification, OCR, digital address verification, and database-driven document verification should control these checks to help organizations onboard certified users at scale. KYC journeys combined with advanced technologies for document altering, liveness checking, and ongoing confirmation can recognize cheats and make onboarding quicker and more consistent.
Without a clear guideline, online pay-to-play gaming platforms have a long way to go to understand their full development potential. However, more significant development will be ensured to those who keep their preparation on track while also dealing with fraud and keeping players happy when the rule is implemented.
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