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What is KYC and How Does It Benefit the e-Gaming Industry?

The period of technological advancements brought various benefits to life. Due to the increase of the COVID-19 pandemic, processes and collaborations became a problem. Thanks to technological advancement, companies monitored the problem well, and presently, company operations are becoming back to normal. While corporations are adopting digitization for increasing the efficacy of activities, criminals are adopting it for their fraudulent activities. Unfortunately, fraudulent activities have remarkably arisen and due to the COVID-19, companies have encountered an increase in cyber attacks as well. Identity fraud, ATO, malicious activities, and data breaches are four of the greatest threats and a new wave of frauds is all set to bring inconveniences for businesses, Account takeover is a developing trend and with the adoption of AI, all scams have become more intelligent.

Given the increase in scams, the e-gaming industry is most exposed among all the industries. As stated by TechRepublic, identity theft greatly transformed the e-gaming industry. With the number of online gamers rising each day, there is a dire need for a solution to combat crimes in the gaming industry. Therefore, KYC authentication is one of the excellent ways that can assist businesses in combating scams. Let’s dive deeper into this blog to find what is KYC and how the online gaming sector gains from it.

What is Know Your Customer (KYC)?

KYC is an identity verification solution that assists various industries to fight scams. The authentication was performed physically but due to technological digitization, now your customer is made digitally which is also recognized as the E-KYC. Individuals no longer have to wait for days to get authenticated during the user onboarding procedure. KYC authentication is performed in the subsequent steps:

  1. Initially, gamers enrol for authentication on the business platform for E-KYC.
  2. Government-approved identity documents are submitted for authentication.
  3. Adopting artificial intelligence algorithms, documents are verified for rainbow prints or tampered documents.
  4. Next, face verification checks are done to make sure the live presence of the client. This step assists in recognizing spoof attacks and cyber-attacks.
  5. Lastly, some regulatory authorities and companies also conduct consent verification measures. Gamers have to submit a handwritten or typed note for this stage.

As time-taking as it seems, online KYC measures are performed in real-time to complete the procedure.

Advantages of KYC for the e-Gaming Industry

The online gaming industry has become the main aim of criminals for their illegitimate activities. Therefore, money laundering through e-gaming is progressing. Adopting KYC measures can assist all companies, particularly the e-gaming sector to fight scams. Listed below are a few advantages of the digital KYC for the online gaming industry.

Criminal Recognition

Recognizing criminals is a problem and due to inadequate identity measures, the e-gaming industry has become limelight to fraudulent activities. With the help of knowing your customer, e-gaming websites can authenticate every gamer that gets in touch. If any criminal uses false documents or tampered documents will be recognized before they can cause any problem for other legitimate gamers.

Minor Protection

Online gaming websites are filled with adult-oriented games that are not dangerous to children. Guarding them is an increasing problem nowadays since minors adopted fake data to deceive age verification measures. To successfully perform the know your customer procedure, gaming websites acquire government-approved identity document checks like passports and national identity documents. Children will be recognized on time and preventing authorization to online games will not be an issue.

Better Compliance with Laws

The strict regulations from the financial action task force and other regulatory authorities are meant to reduce criminals. Therefore, without intelligent IDV measures, it will be hard for companies to follow the regulations. Knowing your customer verification makes it easy for the e-gaming industry to follow the regulations.

Key takeaways

All in all, criminal activities have drastically, particularly during the COVID-19 pandemic. Each company requires intelligent systems to recognize criminals and keep their companies safe. With the help of online KYC, businesses can combat criminals effectively and onboard procedure. Regulative authorities across the globe are in action and the industry is facing several problems. Regulative authorities across the globe are in action and imposing more strict regulations effectively. With knowing your customer, e-gaming websites can follow laws effectively. Apart from all problems, the greatest problem is reducing children from authorizing online games. Thanks to age authentication in the KYC system,  the online gaming sector can keep children secure.

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