ID theft is on the up, rising 12 percentage points in the past year; it now accounts for more than half of all detected frauds .
Experian’s annual fraud report revealed a marked shift in the level of third-party or identity theft – when a victim’s identity is stolen – as a proportion of all detected fraud cases. It’s a trend that has been developing over the past year and now accounts for more than half (52 per cent) of all detected fraud cases.
The switch reflects a return to pre-downturn levels of identity theft when it previously eclipsed first-party fraud.
For gaming providers, who are under more scrutiny from regulations such as Know Your Customer (KYC) and Anti Money Laundering (AML), this rise in identity theft could have a significant impact on both business operations and brand equity.
Additionally, the recent Point of Consumption Tax is driving up operational costs putting additional pressure on gaming providers to win more players and compete even more effectively in their market space.
With this in mind, here are three ways gaming providers can achieve the right balance between customer acquisition and security. This will of course support compliance to regulation and show positive due diligence, without turning away legitimate players…
1. Layer up checks for added confidence in your players’ identities
Identity checking is by nature a two-step process. One, you need to perform KYC checks to establish that your player is who they say they are. Two, you need to ensure that payment checks are made to link each individual to the right card or bank account to comply with AML regulation.
These two stages need different approaches. For example, a solution based on checking data can give you confidence in the identity of your player. To be sure that the payment details belong to that individual means further verifying those payment details against their identity.
2. Put the right checks in place without compromising player on-boarding
In order to comply with increasing levels of regulation within the industry, gaming providers may need to consider additional security checks. The trick is to ensure that these additional steps do not lengthen and damage the customer experience – if the balance between security and service is not maintained people will simply go elsewhere to get what they want.
In some instances it is possible to replace existing security measures with newer and more robust methods – security becomes different rather than additional. So, what if a robust layer of security could be added when players sign-up and play that is transparent and does not involve the collection of personal data?
By analysing the credentials, set-up and usage patterns of the devices your players use to access their accounts you will gain valuable insight. Understanding your players’ mobile phones, tablets and PC’s and the way in which they are used will help you to spot your legitimate players and speed them through a fast and friction-free route to purchase. This can all be managed without demanding additional information, asking players to complete more security procedures, or taking up more of their time.
3. Optimise player on-boarding across multiple channels and devices
Tolerance times for sign-up’s in the gaming industry are the lowest of any at just four minutes .
If you can’t successfully get the right players through verification quickly and confidently, you could end-up handing business over to your competitors.
Player’s won’t thank you for prolonged and complicated identity checking. They are accessing services through multiple devices, such as tablets and mobile and they expect the same high level of customer experience across them all. It is vital that the identity checking solutions you use work seamlessly without causing friction across the different channels to purchase.
1 – Experian annual fraud report 2014
2 – Experian Opinium Research LLP, 2013