The technological revolution has transformed all business sectors and it has also influenced the online sports industry. Whenever online gaming service providers arrange a sports event, there are some clients interested in betting. In some parts of the world, it is legal to make bets as it contributes to the financial growth of sports events and organizers. According to recent statistics, the sports betting industry is expected to flourish at a CAGR (Cumulative Annual Growth Rate) of 10.23% between 2022 and 2027. Fraudsters want money to complete their objectives and know that online gaming events attract huge sums of money. Digital game service providers must implement a Know Your Player system to safeguard players and money.
Online Gaming Fraud in Digital Sports Events: A Short History
In the year 2021, various sports betting activities and retailers supported the sports clubs through massive financial revenue. The 2020 EURO sports event contributed to the economic development of the participating countries. Experts conducted surveys and found that small enterprises made huge amounts of profits. Small businesses included food stalls and other sole proprietors.
The large-scale sports event had a variety of activities and competitions that attracted a pool of audiences. The gaming occasion not only captivated a lot of admirers but also cybercriminals. Fraudsters used stolen identities to gain access to high-value sports betting accounts and high-net-worth player profiles. All of the above happened because of the poor Know Your Player verification system for players and betters.
Know Your Player (KYP) Solution: Protecting Genuine Players
The loopholes in the security protocols of the sports industry have made it susceptible to attacks from money launderers. According to a survey, it was found that approximately 30 million pounds were used in betting activities in the UK alone. In this light, a major issue for online sports platforms is underage players.
The absence of the Know Your Player verification service easily exposes minors to age-restricted content. According to the latest regulations, gaming service providers must perform age verification on the new onboarding players. It will support the gaming platform managers to restrict the access of underage users and safeguard their mental health. Such steps are in line with the global regulatory bodies and international gambling associations that issue their licenses.
Know Your Player Solution: Enhancing Gaming Safety Comprehensively
The digital revolution has both positives and negatives for the players and businesses across the world. During the pandemic, online service providers experienced huge online traffic because all businesses shifted towards digital platforms. This kind of massive change influenced sports admirers from around the world and they made use of the online platforms to connect with their favorite players and join sports events.
The anonymity feature that comes with online platforms can be easily misused by fraudsters to fulfill their malicious objectives. Scammers can use stolen profiles or synthetic identities to exploit others. Such illicit activities contribute to corruption in sports events which is extremely problematic for the sustainable growth of businesses.
Business owners must know that cybercriminals can take advantage of the gaps in their security measures which can damage their financial growth. For example, football gaming platforms have been the target of hackers. Scammers do this because they are aware of the poor KYC AML regulations of the platforms. Companies must know that the involvement of third parties in organizing sports events increases the chances of fraud attempts. This kind of problem can arise in normal circumstances as well as chaotic situations e.g. the global pandemic.
Hence, the application of the Know Your Player verification system is a pragmatic approach.
Know Your Player Service: Safeguarding the Underage Users
The increasing use of laptops and mobile phones along with the widespread availability of internet services has made it easier for minors to get access to age-restricted content. The parents cannot be held responsible for not monitoring their children’s online use. The issue is much deeper and more serious than normally understood by the clients.
The responsibility lies on digital service providers who must put vital checks on their websites to protect underage users. This is where corporate social responsibility and KYC/AML regulations play a critical role. The gaming service providers must implement the latest Know Your Player verification service because the old authentication method had security loopholes.
In a nutshell, digital sports platforms and sports betting are the focus of money launderers and cyber criminals. For enhanced protection, the application of the Know Your Player service will support the electronic sports industry. The digital solution performs identity verification of players at the time of registration and betting. Sports event managers and genuine players must comply with Know Your Player (KYP) solution and ensure adherence to international regulations. The application of the KYP service is an ideal solution for the recent challenges that gaming platforms face in the course of player onboarding procedures.