Recently, the advancement in the online gaming industry has attracted a lot of cybercriminals for financial gains. Even during the pandemic, when companies shifted towards online digital platforms. The hackers targeted the gaming platforms with identity theft to exploit the system for financial gains. In this way, they were able to take advantage of the system and obtain a revenue of around $180 billion. It was really puzzling for the online gaming industry service providers. They wanted a system that could help them in fighting against gaming fraud. A gaming compliance system has regulations that safeguard the players and gaming service providers from digital fraud.
Gaming Compliance: A Brief Introduction to the Gaming Industry
The gaming industry has seen a lot of financial growth since the pandemic because the number of internet users rose in that time period. Before this period, the gaming industry was facing issues in the number of users, they were quite less and the service providers were looking for ways to attract players from across the globe.
Nonetheless, the pandemic period has benefited the gaming industry massively in its growth. Consequently, the gaming platforms have attracted a lot of cybercriminals for financial gains. They have resulted in an increase in identity theft, money laundering, and terrorism financing. This is where the implementation of gaming compliance will help the gaming industry in its objectives.
Money Laundering Case: The Motivation behind Gaming Compliance
The National Security Agency (NCA) found confidential information regarding a small-scale casino that was involved in a money laundering case. According to a local newspaper, the suspected places had laundered a lot of money (around $10 million). Nonetheless, the other groups of money launderers were involved in multiple drug trafficking cases across the globe.
Illicit Financial Transactions against Online Gaming Safety
During the investigation, the main investigator said that around 10,000 poker slots were used to transfer money from one industry to another industry. As per the reports, a lot of serious issues have been highlighted which demand a serious investigation from the law enforcement agencies. The government will fully corporate with the gaming service authorities to catch the perpetrators and prosecute them according to the law.
Cashless Payments: A Progressive Step To Counter Financial Crimes in the Gaming Industry
As per the global regulatory bodies, a famous casino took a progressive step. They decided that the payment transactions from their platforms will be cashless/ digital currency. This step is critical for combating the rising cases of money laundering.
Money Laundering cases Across Australia
According to the investigation in the last year, investigators found that the casinos across Australia were involved in financially criminal activities. This prompted the global regulatory bodies to force the implementation of advanced gaming compliance on the gaming service providers. The investigation revealed that the gambling/ gaming service providers were an accomplice in money laundering that exposed their staff members to dire legal consequences. But their commitment to ban payment through cash is a positive sign toward safe gaming operations.
Additionally, another gambling/gaming service provider transitioned towards cashless gaming payments, as per the latest gaming compliance. According to a staff member, the change will happen gradually and the course of action is still under consideration. Therefore, the gaming/gambling service providers will have to apply the latest client identity authentication service in order to onboard only genuine and adult clients into their gaming platforms. It will also help them monitor their financial transactions with high accuracy wherever required.
Gaming Compliance: A Major Step Towards Reducing Financial Crimes
The online gaming/ gambling platforms deal with huge sums of money that attract cybercriminals from all around the globe. They want financial gains to accomplish their malicious objectives. A rise in financial crimes is not a desirable situation for the global regulatory bodies. They introduced stringent gaming compliance to combat the issue. Every country has different law enforcement bodies and in Australia, there is a regulatory body named AUSTRAC (Australian Transaction Report and Analysis). The body is responsible for implementing AML/CFT guidelines.
Concluding Remarks
In a nutshell, gaming compliance safeguards the gaming industry from digital scams. This is important for the global regulatory bodies and this is the reason why they keep updating the regulations (i.e. making them more stringent). The gaming industry has to implement a robust identification system.
Advanced identity verification solutions are perfect for businesses that want to provide online gaming services, as per gaming compliance. The AI-backed ID authentication solution enables companies to validate the identities of their customers before onboarding them. The strong AML checks service can validate the client’s identity by cross-checking their profiles through multiple global watchlists with higher accuracy levels.