The Role of Digital Identity Verification in Ensuring Safer Online Play

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The Role of Digital Identity Verification in Ensuring Safer Online Play

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In early 2024, Greek game developer Kaizen announced a partnership with biometrics experts Jumio to streamline its user bank account verification. This type of arrangement is being adopted across the global gaming industry and shaping the future of identity verification in gaming.

For an average gamer, gaming is all about knowing the rummy and poker game rules and excelling in the games. But real money games like poker involve fund transfers and withdrawals. Gamers also share personal information on the gaming platforms that they would want to be kept protected. In a nutshell, online gaming sees the exchange of personal and financial data whose protection is paramount. Digital identity verification is a step forward towards this protection.

Braving an Identity Crisis

Know Your Customer (KYC) and Know Your Transaction (KYT) procedures have helped financial institutions secure their business from mismanagement and malpractices. This is what is needed in the gaming industry as well, as reiterated by Jumio’sAsiaPac VP, Frederic Ho, at the 6th ASEAN Gaming Summit. Banks have used advanced online verification processes to transition from face-to-face to online interactions. Gaming companies, on the other hand, are having to face the challenges of the cyberworld upfront.

In most countries, only adults are allowed to play real money games. Gaming platforms must ensure that appropriate age checks are in place to ensure this. Games also need to eliminate bots at all times and counter sophisticated challenges like AI-generated deepfakes. Concerningly, AI-powered deepfake scams have increased by 10 times between 2022 and 2023.

Besides, the perennial threat of identity theft and fraud is also present in the gaming industry. Fraudsters even go on to take over gaming accounts through phishing and exploit them. Scammers also create multiple accounts to overwhelm users with fake bonuses and offers.

Identity theft and hacking are two of the most common forms of fraud encountered by 67% and 61% of gamers, respectively. Upgrades in digital identity verification are, therefore, vital for gaming platforms.

How Does Digital Identity Verification Help?

Companies are going for various identity verification systems, even if it comes at a cost. For a few cents to a dollar per verification, these systems are securing identifications in various user-heavy industries. Verification service providers offer packages where companies buy services for a certain volume and, again, later if required.

18% of young Indians in the age group of 5 to 14 engage in online games. To discourage financial misuse among these gamers, age verification becomes vital in real money games. Identity verification nowadays uses facial biometrics and cross-checking the results with the identity documents. This reduces the chances of a minor’s entry into the gaming ecosystem. Advanced facial biometrics is also important, considering that 73% of all frauds detected in Q1 2024 were selfie mismatches.

Gaming platforms must ensure ease of use when deploying these processes. A streamlined digital identity verification process combines security with minimised clicks and fast account opening.  
According to a study, 29% of web traffic in online gaming is caused by bad bots. These days, verification processes can even confirm the presence of a real human in front of the camera. Liveness detection technology detects human presence in the game to eliminate the threat of bots and deepfakes. This technology can also ensure that the face with impressive expertise in pokergame rules is not just an image, a video or a replay.

Ticking the Right Boxes

With safety as the primary focus, digital identity verification processes also enhance the user experience. These systems are curtailing the identity verification process and its waiting time. A smaller number of gamers end up abandoning the verification process midway through the process.

User retention and conversion rates are important metrics for online gaming platforms. A fast and streamlined verification process keeps these rates high. Their role in maintaining top security standards is vital at a time when fraud in online gaming has been increasing at 64% year-on-year in the last two years. Apart from the selfie mismatches and the AI deepfakes, the cyber world also bears more grave threats, such as money laundering, be it in poker matches or multiplayer battle royales.

For gaming companies, using an advanced digital identity verification process is not just about safety and uninterrupted user experience. Gaming companies in India now need to follow stricter KYC mandates, thanks to recent Ministry of Electronics and Information Technology (MeitY) regulations. The MeitY regulations expect that gaming companies address the pertinent fraud issues faced in the industry, such as multi-accounting, account takeover, counterfeiting of documents, money laundering, etc.

Advanced identity verification tick boxes that go beyond safe gameplay.

Towards Total Safety

The sophisticated innovations in verification systems have given gaming platforms a great opportunity. Along with safe online play, seamless account usage and regulatory compliance are achievable for platforms with one smart infrastructural investment.