Identity fraud is a growing concern in the iGaming industry, with criminals using a range of tactics to commit fraud and steal money from users. Three common types of identity fraud in iGaming are social engineering fraud, synthetic identity fraud, and account takeover. However, automated ID verification with biometrics can be an effective way to combat these types of fraud and protect users.
Social engineering fraud is a type of identity fraud where a criminal uses deception to trick a user into revealing their personal information, such as login credentials or account numbers. This can take many forms, such as phishing emails, fake websites, or phone calls from people claiming to be from legitimate companies. Once the criminal has the user’s personal information, they can use it to gain access to the user’s iGaming account and steal funds.
Synthetic identity fraud involves the creation of a new identity using real and fake personal information. Criminals may use this fake identity to set up a fraudulent iGaming account, which they can use to engage in fraudulent activity or steal funds. Because the identity is partially based on real information, it can be difficult to detect as fraudulent. This is an area where identity biometrics plays a key role in helping determine fraudulent activity.
Account takeover occurs when a criminal gains access to a user’s iGaming account, often by stealing login credentials through tactics such as phishing or password guessing. Once they have access, they can use the account to steal funds or engage in other fraudulent activity.
Automated ID verification is an important tool in the fight against these types of identity fraud. Automated ID verification systems use a range of data sources, such as government databases, credit bureaus, and biometrics to verify the identity of users. This helps ensure that the person opening the account is who they claim to be, and can prevent the use of fake identities or stolen credentials.
There are several key benefits of automated ID verification in the iGaming industry. First, it can help prevent fraud at the point of account creation. By verifying the user’s identity before they are allowed to open an account with biometrics, it can prevent the use of fake identities or stolen credentials. This helps protect both the user and the iGaming company from fraud and theft.
Automated ID verification can also help prevent account takeover. By monitoring user activity and looking for signs of suspicious behavior, such as logging in from an unfamiliar device, location, or different biometrics, the system can flag potential fraud and alert the iGaming company to take action.
In addition to preventing fraud, automated ID verification can also help iGaming companies comply with regulatory requirements. Many jurisdictions require iGaming companies to verify the identity of their users, and automated systems can help streamline this process and ensure compliance.
Overall, social engineering fraud, synthetic identity fraud, and account takeover are serious threats to the iGaming industry. However, using automated ID verification with biometrics is a powerful tool that can help prevent fraud, protect users, and ensure compliance with regulatory requirements. By implementing biometric-based automated ID verification systems, iGaming companies can take a proactive approach to identity fraud and create a safer, more secure online gaming environment for their users.
