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AU10TIX report: online gaming hit hard by ID fraud

Tuesday 4 June 2024 13:33 CET | News

Global technology provider of identity verification and management, AU10TIX, has recently released its Q1 2024 Global Identity Fraud Report, showing trends in large-scale organised identity fraud.

The report was based on the insights provided from millions of transactions across the globe between January 2024 and March 2024, and mentions that the online gaming industry’s share of fraud has increased by more than 250% since Q4 2023. At the same time, the payments sector continues to remain fraudsters’ main playground, accounting for 62% of the total number ofattacks.

 

More findings from AU10TIX’s report

The Israel-based company identified bonus abuse as the main type of fraud in 50% of online gaming transactions, which implies the creation of multiple accounts to exploit promotional bonuses granted for new members. According to AU10TIX, the increase of promo abuse (or bonus abuse) may be the result of the gaming industry’s appeal to younger users. However, the company expects this type of fraud to decrease after more gaming platforms will comply with new regulations and implement more accurate KYC and age verification solutions.

As previously mentioned, the gaming industry wasn’t the only one targeted by greedy fraudsters and bad actors. Data from the report suggest that, since Q1 2023, payments fraud had grown from 39% to 62%, while analysts from the company expect this trend to continue throughout 2024. 

In terms of identity fraud, the report compares the frequency of different fraud documents and models, including image template, face picture, facial image capture (selfie), document number, and personal data. US passport ID cards are the most forged documents because they are easy to snyhetise using deepfake technologies and bypass monitoring systems undetected.

Organised criminal groups are heavily relying on AI tools to commit large-scale, coordinated identity fraud, whereas fraud involving selfie captures alone represented under 5% of the total number of attacks.

Global technology provider of identity verification and management, AU10TIX, has recently released its Q1 2024 Global Identity Fraud Report, showing significant trends in large-scale organised identity fraud.


How to tackle identity fraud using AU10TIX’s tools

The Israel-based fraud prevention and identity verification company uses advanced ML technologies, coupled with a multi-layered defence system, and other tools to detect and prevent sophisticated types of identity fraud.

According to AU10TIX, selfies may prove effective when fighting and preventing fraud, as fraudsters consider the use facial image capture a difficult verification method to bypass. Moreover, to prevent payment fraud, providers should strengthen their own KYC and AML processes in the absence of stricter regulation.

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Keywords: report, online fraud, payment fraud, gambling, fraud prevention, age verification, identity verification, deep fake, machine learning, artificial intelligence, digital identity, digital onboarding, KYC, eKYC, AML, regulation, fraud management, fraud detection, identity fraud
Categories: Fraud & Financial Crime
Companies: AU10TIX
Countries: World
This article is part of category

Fraud & Financial Crime

AU10TIX

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