Onfido’s AI authentication technology protects users of online sports betting platforms from various forms of fraud
Given these developments, regulators around the world are easing laws, allowing them to develop in new markets and reach new consumers. But significant growth is not without its problems. Indeed, when looking for new opportunities, online sports and gambling operators must anticipate and take into account local requirements, including security and fraud: age and identity checks.
In addition, fraud, whether in the form of bonus abuse, multiple account registrations and account hijacking, not only distracts real customers, but also affects the profits of companies.
Moreover, if fraudsters have access to sports betting and gambling operators’ platforms, it also increases the risk for money laundering and other financial crime companies.
French rules on gambling
Although the member states of the European Union have a certain legal framework, there is no European legislation specific to the sports betting or gambling sector. In general, online gamblers must verify the identity of any new player and make sure they are 18 years old before allowing them to play in accordance with KYC (Know Your Customer) requirements. The Anti-Money Laundering Guidelines (AML) also require gaming operators to evaluate all players on the basis of a risk assessment to reduce the risk of financial crime.
In France, most online sports betting and gambling platforms are legal. In June 2020, a new game regulator was launched – the National Gaming Authority (ANJ). The latter now controls all forms of gambling, including online sports betting, casinos and other games of chance. Private operators must obtain online licenses to offer gambling services in France.
Consumer protection is a challenge for online gaming operators
In addition to the penalties that operators who do not comply with these obligations risk, the verification of identity allows the player to protect both the person who identifies the person and the consumer. In the fight against fraud, online sports and gambling operators protect their consumers, on the one hand, and on the other hand, limit the abuse of bonuses, numerous registrations and the seizure of accounts that directly affect their income.
Onfido’s AI authentication technology allows operators to meet KYC’s national and international requirements and age verification without compromising the user experience.
• Artificial intelligence-driven verification automation allows game operators to detect more fraud to stop the abuse of bonuses and multiple account registrations, while reducing the risk of money laundering, money laundering and financial crime.
• It also allows for the deduplication of technical resources by providing internal teams with the tools they need to detect repeat offenders and track potential customers in real time.
• Finally, the use of an automated approach avoids the integration of multiple suppliers or the exchange of information between multiple sources, saving time and money.
On the consumer side, 43% of them refuse to create an account if it does not meet their expectations. Registering an account is the most important (and sometimes the only) opportunity to make a good first impression. Especially since in most countries the gaming market is saturated with providers. Consumers are spoiled for choice.
If one provider does not make it easier to open an account as much as possible, the consumer can (and will) just as easily switch to another provider with easier registration.
Confirming that identity verification is an important part of this registration, 48% of players want to bet in less than 3 minutes and 80% in less than 10 minutes.
Therefore, it is important that the process of registration of operators of sports betting and online games takes into account customer expectations, for this Onfido offer allows for several identity checks, namely:
• Individual screening in seconds to meet the needs of age verification and regulations around the world.
• Document Verification ensures secure and appropriate global registration by verifying a legal document. More than 2,300 identity documents are supported.
• Face-checking combined with document-checking to protect a person from stolen credentials and fraud.
• Known faces of repeat scammers by identifying duplicate information and faces.
• Watchlist, Onfido database is constantly updated to meet AML requirements with the latest data.