KYC Verification Services for Online Gambling Sites

A study revealed, online gambling has seen unprecedented growth and is anticipated to double in size to more than 94 billion USD, in 2024. Cybercriminals are getting their game strong and becoming sophisticated in tricking people and committing frauds like credit card frauds, identity theft scams, multiple accounts. Online businesses are particularly vulnerable to frauds and scams.  Gambling is itself a risky game. The potential for fraudulent activities makes it more dangerous for the real players. Online gambling sites need a reliable anti-fraud method to protect their businesses against frauds. Higher the market value is of business more are the chances of fraudsters intruding in it. There are several techniques to plague the online gambling sector which can be battled by using KYC services.


Why is KYC Mandatory for Gambling Industry:


 Digital solutions for KYC verification can prove to be a better solution for Online Gambling Industry to curb credit card frauds. An online gambling company was fined 10 million Euros by the UK gambling commission. The fine was imposed because the company was not performing KYC services of its customers resulting in fraudulent transactions. To tackle this scam governments across the globe take measures and issue regulations. Now it has become obligatory for companies to have sound KYC and Due Diligence solutions.


KYC verification- Death Blow to Gambling Scams:


Following are the scams that are most common in the gambling industry which can be tackled by using digital KYC services:

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  • Credit Card Frauds:


Credit card frauds are the most common type of fraud in the gambling industry. In Gambling the perpetrators tend to use stolen credit cards and credentials for filling up their bet accounts. Once the credit card company finds out about these fraudulent transactions, the gambling business faces chargebacks and heavy fines. Such fraudulent activities can be mitigated by using identity verification services to perform KYC of the client.

Not only is it obligatory, but it is also beneficial to stop credit card fraud. Credit card fraud in the gambling industry occurs when someone uses a stolen credit card for gambling. If a company has a sound KYC verification, then they could easily identify if the customer is who they say they are. 

For example, the ID verification technique could verify, whether the credit card in use belongs to the person who is making the transaction. In ID verification, a user uploads a picture of their documents and then the main information is verified against the credit card details they provide. 



  • Multiple Account Fraud:


Another common fraud in online gambling is multiple account fraud. In this, an online fraudster tends to create many online accounts for gambling on the company site. These accounts are then used to carry illegal activities. Having a good online verification system can help companies to ensure that such frauds are dealt with suitably. ID verification for KYC can make sure that only one account is registered against one ID. By performing certain verification checks such as Document verification, Biometric Facial verification, companies will know if someone tries to create multiple accounts. For example, the Social Security Number (SSN) of a customer can be used as a check for new account registration.

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  • Identity Theft:


Identity theft is another major type of scam being played in gambling sites. In this, a person uses the fake identity of someone better known already to gamble with his name. Such types of fraud can be mitigated right from the root with the help of KYC services for gambling sites so that every individual has to prove his real identity as soon as he is on the site. The online gambling sector can derive many benefits from KYC verification. This will help businesses to stop online fraudsters reaping on their earnings. 

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