As technology enhances many platforms, it damages the security system of many businesses, including the gaming community. Money launderers and scammers are always on the lookout for scamming people.
Gaming KYC is an ideal tool for players and game owners in response to rapid expansions in financial fraud. Online gaming verification with KYC is the foundation of all regulations, complying with these is compulsory for online and offline games. “Significant global casino activity that is cash broad, competitive in its development, and vulnerable to criminal abuse”, as stated in the FATF study “Vulnerabilities of Casinos and Gaming Sector”. The FATF also discovered significant flaws in the global anti-money laundering (AML) and counter-terrorist financing (CTF) laws that apply to the gaming industry.
Why is Gaming KYC Essential?
KYC is referred to as know-your-customer. KYC verification is essential for many industries, including financial institutions, corporate companies, cryptocurrency industries, gaming and others. Instant gaming verification ensures companies comply with regulations and remain safe from legal consequences.
The rapid growth of online gaming has increased the need for effective KYC verification tools. As a result, online document verification is the best tool for identity attestation and electronic solution of KYC compliance. The online gaming industry has been dramatically growing since 2020 and is expected to raise more than $ 74 billion by 2023. This rapid growth drives the need for proper Gaming KYC verification and electronic identity process.
Regulations in the gambling sector must be followed by firms operating in them. They find it challenging to welcome new customers and keep a secure atmosphere. Efficient KYC verification services protect the gaming industry from an imposter and secure gamers’ personal information. Conducting KYC checks ensures the gaming industry is a secure environment for everyone.
How Gaming KYC Bolsters Security
As technology is evolved and digital gaming increases, so does the need for KYC verification and electronic identity process. KYC compliance is crucial in the gaming industry for preventing fraud, money laundering and illicit activities. The online village has become more advanced, and gaming has expanded from PC to mobile phones, KYC is essential to confirm a customer’s identity and ensure their financial transaction is legitimate. There are several types of KYC, from traditional to electronic. These can be done through ID papers, utility bills, or passports. The KYC verification validates the document and cross-checks it with provided data. Given below are the steps of how gaming KYC protect businesses:
Online gaming has to follow the policies of KYC, it’s crucial for games to confirm customers’ identity when they first deposit money in the game. Identity verification for online gaming with the help of digital KYC software accelerates the process. Gaming companies can use an online verification system, which collects the data and assorts the provided information remotely. Customers don’t have to visit the office for verification. They can register on the online platform and submit documents online from anywhere. For registration, customers are only required to provide information about themselves. The basic required data is the name, date of birth, phone number, and address. After registration, the customer can upload the verification documents required for Gaming AML KYC compliance. The software attests to the format of the papers and ensures that the documents are compatible with the system.
Optical character recognition (OCR) is a technique used by online gaming KYC. It is a technology to extract textual data from papers. It organizes data into a secure database to safeguard clients’ personal information from online fraudsters. After categorizing the document in the secure database, it is moved to additional analysis. The online document verification software’s OCR technology produces accurate results during the validation process. Online KYC verification software employs a rigid technique to ensure transparency and precise results.
The captured image is enhanced in the extraction process to be validated authentically. Quality improvement may involve image cropping, rotation correction, noise reduction, and brightness adjustment. It also identifies the visible security features such as borders, stamps, fonts, signatures, and particular patterns according to paper.
Digital gaming KYC software uses AI framework technology to verify the provided information and documents. The advanced machine learning program is used to authenticate documents, so there is no chance of any error or human mistake. This process verifies the document’s legitimacy by cross-checking the papers from various databases. First, compare the papers to the original to authenticate that provided documents are not counterfeit and tampered with. To ensure a person’s information does not match with any wanted criminals, online identity verification cross-references extracted data from various databases, including AML, CTF, and KYC. It also matches the provided information and data written on the paper to confirm an individual is the same person they claim to be.
Conclusion of Gaming KYC
KYC is essential for many industries in the financial sectors, including online and offline games. The gaming sectors have a vast amount of transactions which makes it valuable. The inefficient gaming fraud verification process makes it vulnerable to scammers. Digital gaming KYC protects games from financial scammers and enhances their security strength.