In the world of online sports betting, it is crucial for iGaming operators to verify the identities of their customers. This is not only to comply with legal and regulatory requirements but also to protect their platforms from fraudulent activity. In this article, we will discuss how iGaming operators verify the identities of their customers and how an automated ID verification process can help with KYC compliance.
Age and Identity Verification
One of the primary methods that iGaming operators use to verify customer identity is age and identity verification. This typically involves manually collecting personal information from the customer, such as their name, address, and date of birth, as well as government-issued identification documents like a passport or driver’s license. The operator then compares this information against databases of known fraudulent identities and checks the age of the customer against the legal gambling age in their jurisdiction. An automated ID verification platform like that offered by OCR Labs enables iGaming operators to streamline their age and verification process by allowing bettors to autofill their personal information by taking a picture of their ID. While verifying if the ID is fraudulent or not the platform can also check against databases reducing the amount of work for the operator and giving an almost instantaneous response on if the bettor is verified or not.
Address Verification
Another method that iGaming operators use to verify customer identity is address verification. This involves verifying the customer’s address against databases of known addresses and cross-checking it against the information provided by the customer. Address verification is important because it helps to prevent fraud and ensures that the customer is located in a jurisdiction where online sports betting is legal. With an automated ID verification platform addresses can be pulled off of driver’s licenses to reduce the amount of effort it takes bettors to get onboarded. An additional check can also be done on the bettor’s cellphone location so that if they are traveling to a legal betting location they are allowed to bet. This helps increase the bettor experience, especially while traveling. It also increases the amount of betting an operator can facilitate as ID addresses and the actual location of the bettor only align when the bettor is at home. Think about the number of people that travel to Las Vegas to place bets that wouldn’t be able to gamble if not for travel.
Fraud Detection and Prevention
iGaming operators also use various fraud detection and prevention measures to identify and prevent fraudulent activity on their platforms. This typically includes monitoring for unusual activity or patterns, as well as using third-party fraud prevention services. These measures help to protect the operator’s platform from fraudulent activity and ensure that sports betting is conducted in a fair and transparent manner. One of the areas lacking in the digital sports betting industry is the ability to tell if an ID document is fraudulent or not. With the rise of synthetic IDs and the ability to purchase high-quality fakes online detection is becoming more difficult. An automated ID verification platform like that offered by OCR Labs can detect fake IDs by doing a document fraud assessment in line with ID verification delivering a frictionless customer experience and ensuring the bettor can start betting quickly.
Conclusion
In conclusion, iGaming operators use various methods to verify the identities of their customers, including age and identity verification, address verification, and fraud detection and prevention measures. These methods help to ensure that sports betting is conducted in a fair and transparent manner and protect the operator’s platform from fraudulent activity.
An automated ID verification process can help iGaming operators with KYC compliance by streamlining the identity verification process and reducing the risk of human error. By using advanced technology to verify customer identity quickly and accurately, iGaming operators can provide a robust and auditable record of the identity verification process, helping to comply with regulatory requirements and protect their platform from fraudulent activity.
