Know Your Player – Deterring Identity Fraud in Sports
The advancement in the sports sector has brought many positive changes due to globalization. Whenever a sports event is going on, some people are largely interest in making bets. It keeps them going and fully invested in the games. All over the world, there are certain places where betting is a legal activity because it brings revenue to the organizers and plays a positive role in sports event management. As online gaming platforms are a target of scammers so are these offline and physical events. The involvement of fraudsters has damaged the reputation of the players and event organizers.
Brief History of Scams in Sports Events
In the previous year, the major financial support for the sports clubs came from betting event managers and some retail operators. The 2020 European sports event contribute massively to the economical development of the countries that participated. After conducting the surveys, it was found that small businesses (e.g. food stalls, street shops, and other vendors) made a lot of profit. The availability of different options and arrangements of favorite sports attract a lot of clients to the events. The increase in customers was not the only thing that happen. It also meant that many scammers and thieves also target these events to fulfill their malicious missions. They use fabricate identities to have access to high betting accounts and high profile identities which was problematic.
Why was an Update in Regulations Introduced by the Licensing Authorities?
The sports industry is susceptible to financial terrorism e.g. money laundering. As per the statistics, around 30 million pounds use in gambling on digital gambling platforms last year in the United Kingdom. In this context, a big problem for online sports service providers is the entry of underage users. Teenagers getting access to age-limit services and content is a big issue so the latest updates in regulations demand digital sports event organizers and better perform identity certification. The age verification should be executed on the new coming players. These regulations impose by financial regulatory bodies and international gambling associations that issue licenses to them.
The Latest Scenario of Fraud in Digital Sports and Online Gaming Safety
The technological transformation has negatively and positively impact everyone all around the world. In the previous year, there was a massive increase note in audiences for the digital sports events. The good news is that audiences from all around the world connect with the players and enjoy the experience. On online gaming verification with KYC platforms, there is the feature of anonymity that can be easily misuse. It means that fraudsters can take advantage of these options and steal the ID of any genuine player to their advantage. These kinds of steps introduce an increase in corruption of the events. It can be problematic in the run for the companies.
Any company that faces financial issues frequently can be threat by criminals and organize crime groups. The football gaming verification platforms have been frequently targete by fraudsters to gain a financial advantage for their inhumane objectives. These kinds of illicit activities keep happening because there is a lack of KYC and AML regulations in the system. Furthermore, whenever there is an involvement of 3rd parties in the sports events, they make the game events susceptible to scamming attempts. It can happen anytime i.e. both under normal circumstances and in global emergencies like pandemics.
How can KYP Add Value and Provide Solutions to the Challenges?
The increase in the use of electronic devices and free availability of the internet has given access to minors to all those services that are not age-appropriate for them. It is not the issue that parents are not keeping a check and balance on their children but the problem is something else and it is much bigger than widely understood by the clients. This is where the responsibility of the service providers comes into play and they should install checks on their sites that make sure that underage users do not use the services that are not meant for them. Hence, the application of AML regulations and corporate social responsibility comes into play.
The gaming scam prevention service providers should keep in mind that the verification solutions should be update because the old methods of authentication won’t work on the latest and most sophisticated fraud attempts.
Online sports platforms and betting activities are easily the targets of hackers, financial terrorists, and other cybercriminals. For effective prevention of such frauds, the KYP Know Your Player solution should be implement everywhere. It verifies the identity of the players at the time of login and on other important occasions (e.g. betting). It is important to make sure that the event organizers and players stay in gaming compliance with the global standards to maintain the interest of the customers’ due diligence in gaming. The latest verification procedures are the perfect solution for the challenges that businesses face nowadays during the player onboarding process.