Technological advancement has provided businesses with many benefits. In contrast to how businesses utilize digitization to increase the efficiency of the organization, criminals use technology for their unlawful actions. Sadly, there’s been an upsurge in fraud activity, and because of covid, businesses have witnessed more breaches. Identity theft and data breaches are two of the largest risks, but as the fraudsters have gone smarter, they are giving enterprises a tough time. Account takeover appears to be on the rise, and all methods have become more complex as a result of the usage of AI.

Due to the surge in crime, the e-gaming industry is the one that is most at risk. Because the number of virtual players grows frequently, the gaming industry urgently needs a tool to combat fraud. Therefore, knowing your customer compliance systems are a great service for businesses to battle against fraudulent activities. Let’s dive into more information about KYC validation and the advantages it offers the online gambling sector.

KYC Procedure at a Glance 

Even if they differ between nations and business sectors, several phases are common to all know your customer compliance processes. These include:

  • Customer Identification 

At the beginning of the onboarding process, a firm should first identify its customers. End users need to show their official IDs to accomplish this. The business can automatically gather information from the provided documents employing OCR (Optical Character Recognition) systems. The client next has to provide a selfie that verifies the appearance on their ID paper. The clients get the outcome once the software cross-matched the given data.

  • Customer Due Diligence 

One of the essential know your customer criteria is to carry out all pertinent customer due diligence activities. Customers who pose little to no danger, for instance, are subjected to due diligence. However, high-risk customers are subjected to Enhanced Due Diligence (EDD), which necessitates the submission of additional paperwork from end users. These comprise the customer’s current address and work location.

  • Ongoing Monitoring 

During the initial registration step, only one client verification is not adequate. Ongoing KYC/AML checks are what firms need to lower the risk of forgery. A continual verification approach results in an enhanced risk assessment. A sudden rise in transactions, unfavorable media coverage of wrongdoing, and transfers to foreign corporations all have the potential to activate the KYC compliance solution.

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Benefits of Know Your Customer Compliance for the Gaming Sector

These days, the online gaming industry is the target of many criminal operations. As a result, more people are using online gaming to launder money. Implementing AML KYC compliance measures to fight fraud can be beneficial for all firms, but notably for those operating in the e-gaming sector. The following are a few benefits of using KYC for the gaming market.

Criminal Recognition

Criminal detection is difficult, and because there aren’t enough identity protection safeguards in place, the e-gaming industry has turned into a haven for illegal activity. By utilizing KYC compliance online services, e-gaming companies can identify any player that approaches them. Any fraudster utilizing falsified or manipulated documents will be apprehended before they can threaten other legitimate players.

Minor Protection 

On internet gaming platforms, there is a tonne of adult-focused online games that are not suitable for children. Protecting children is becoming more difficult these days since kids have started using false information to mislead age verification systems. Gaming websites fulfill the know-your-customer compliance process by collecting data from national identity certificates. Children will be quickly identified, therefore the problem of denying permission to play online games won’t arise anymore.

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Compliance with Laws

The FATF as well as other regulatory organizations want to prevent crime by implementing severe regulations. Without knowing your customer compliance technology, it will be difficult for firms to follow rules. It is simple for online gaming corporations to follow the requirements because they know how to authenticate their consumers.

Final Thoughts

Criminal activity has considerably grown, particularly following the COVID-19 outbreak. Every corporation needs smart systems to recognize fraudsters and safeguard their operations. With the help of know-your-customer compliance technology, companies may successfully thwart criminality and onboard legitimate customers. Regulating agencies are operating all over the world to tackle such issues. Stricter standards are successfully being enforced by internationally engaged regulatory agencies. Recognizing clients will help e-gaming companies effectively follow the law. Besides everything else, the main problem is preventing youngsters from approving online gaming. The introduction of age authentication in the know-your-customer compliance process ensures the safety of minors in the internet gaming sector. Thus, KYC is a great bet for the sector in the digital era. 



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