Gaming Frauds: The gaming industry seems to have thrived amidst the pandemic and so do the scammers. The increased attention toward online gaming paved the way for gaming frauds.
Covid and the Gaming Industry:
As much of a ravage, COVID has brought to the businesses, it has equally damaged personal well-being. Hence, in order to adapt to the drastic changes, everyone seems to have adopted their respective coping mechanisms. The use of social media that was already reaching heights experienced a boom. Where the world shifted online in terms of business, the gaming industry flourished vigorously since people found their solace there, escaping from the mentally disturbing reality that consumed them. Like any other, online gaming companies have become a billion-dollar business.
The Rising Gaming Industry:
The first video game emerged way back in the 1970s and has been popular since then. The new gaming era, however, has totally transformed the traditional ways of gaming verification by integrating photorealistic graphics and simulating reality to an astounding extent. The continuously changing technological trends have revolutionized the gaming sector to a considerable extent. The change is not only experienced in the gaming modules but in relation to monetization as well.
As the world has progressed through several eras, the techniques have continuously been modified to adapt to the trends. Among many other businesses that experienced a setback during Covid, the gaming industry rose to heights and set groundbreaking records. With the implication of social distancing and lockdowns, people adopted gaming as their mode of escapism. The increased usage was observed globally and the US gaming sector reported the sales to hit the highest target in over a decade in the month of March.
Gaming scams and regulatory measures:
Any business just cannot work smoothly without the intrusive intervention of scammers. The gaming industry experienced the same. The fraudsters send unauthorized links containing malicious viruses. Clicking on the link leads to the extraction of personal data from the source and releases the virus in it.
Another common practice observed, is to offer freebies to the users in the shape of free coins that they earn by logging in their credentials. Yet another tactic applied is to feed games into the play store that require a particular sum of money to be paid in order to be installed and players do fall prey to this as well. The scammers find it easier to scam the users through in-game strategies and the few aspects that catch the scammers’ attention are:
- Absence of a KYC policy
- Multiple in-game payment policies
- Permissible anonymity
The absence of such regulatory gaming verification measures risks online gaming safety. Hence to prevent gaming frauds, effective application of know your player policies must be implemented to identify the player’s identity in order to prohibit any potential gambling.
The basic requirement of customer due diligence in gaming is to authenticate the user’s identity. Intending to ensure a seamless and secure gaming experience, the apps must verify the user’s ID and documents. Doing so eliminates the misuse of important personal data and ensures compliance with data privacy laws as well as KYC and AML regulations. The age identification prospect prevents minors and vulnerable individuals from signing up, hence beating future cybercriminals. Age identification of the prospective users also helps the gaming website to comply with the geographically varying age requirements and restrictions.
Cyber Criminal’s tactics to access gaming websites:
Cybercriminals are always seeking ways to launder money and games like online poker and ones that offer multiple operating accounts are their easy target. The gaming websites and apps can only improve their security by complying with the KYC and AML regulations and adopting strict measures of online gaming verification. Intending to save the gaming industry from indulging in onboarding scammers, Shufti Pro provides authentic KYC verification and AML solutions that authenticate the user’s identity hence, approving real users and preventing potential fraudulent attempts.
Statistics of the Gaming Industry:
The year 2020 marked the peak of the gaming industry with the statistics rising as high as 37 billion US dollars and mobile gaming generating a revenue of more than 77 billion US Dollars. Among many other companies, the most successful in terms of gaming were Sony, Apple, and Tencent, generating billions of revenue. In 2020 the sales of Sony’s Playstation 4 reached 112 million units.
A study stated that free-to-play games generated more revenue than paid games which reached 98.4 billion dollars in 2020. Considering the significantly increased statistics of the gaming industry, the revenue generated is expected to further increase to 204.6 billion dollars by the end of 2023. Regarding the compound annual growth rate (CAGR), people are expected to spend almost 4.5 million dollars on online games between 2020 to 2025, causing the CAGR to increase by 12%.