SBC News AU10TIX registers 250% bump in online gaming fraud

AU10TIX registers 250% bump in online gaming fraud

In its latest fraud report, ID verification provider AU10TIX has highlighted that crime is increasingly affecting online gaming providers.  

The Q1 2024 Global Identity Fraud Report suggests that fraud rates have increased by more than 250% in the first quarter of the year, affecting a market that generates $26bn in revenue annually. 

The results were led by payments fraud, which accounted for 62% of all fraud attacks during the quarter due to its limited regulation. By comparison, payment fraud made up approximately 39% of overall identity fraud cases in Q1 2023.

Dan Yerushalmi, AU10TIX CEO, commented: “Organised criminal groups are increasingly using AI to commit large-scale, coordinated identity fraud.

“Our advanced machine learning technology, multi-layered defence system, and consortium of 60+ tier-1 companies enable us to detect and prevent this sophisticated fraud, which most identify verification platforms miss. 

“We are committed to protecting our customers and leading the way with innovative, future-proof solutions that address emerging challenges effectively.”

According to the report, gaming operators and regulators are also dealing with bonus abuse with 50% of the attacks involving fraudsters creating multiple accounts to exploit promotional deals awarded to new customers.

AU10TIX has found that verifying identities using selfies proves to be effective with document number fraud being the most popular mode of attack. Document number cases increased by 18% in Q1 2024 compared to the same period last year. 

Face picture fraud increased by 28% during the quarter compared to Q4 2023 while fraud attacks using selfies remained stagnant between the last quarter of FY2023 and the first quarter of 2024.

The AU10TIX analysts expressed that payment fraud cases in gaming will decline if more operators implement and comply with identity verification, age verification, and KYC solutions. The company is urging online operators across the world to “self-regulate” to prevent fraud.

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