All-in-one verification platform Sumsub has announced the launch of a new tool to help online betting platforms to calculate their potential waste losses during the upcoming 2022 Football World Cup.
As part of the customisable AI-driven verification solution, the company aims to provide its customers with an enhanced KYC infrastructure that can process high numbers of users. As a result, bookmakers will be able to better handle World Cup traffic spikes while deterring potential fraudsters and minimising losses.
Fraud in the online gaming sector is rising
Major sporting events have always drawn more traffic to betting platforms, which represents the perfect opportunity for fraudsters to hit big and cash in as much as they can. According to Sumsub experts, we should expect a 400% surge at bookmakers during the 2022 World Cup in Qatar, which means endless opportunities for fraudsters.
Fraud has been on the rise in the gambling industry during the past couple of years, with an 85% surge in fake account registration in 2022, as opposed to last year. To help gambling platforms estimate their fraud risks, Sumsub has launched a free online calculator that can determine exactly how much platforms should expect to pay as a result of fraud, during the World Cup.
How does the tool work?
First of, Sumsub’s calculator focuses on various types of fraud that bookmakers might experience online, including multi-accounting, arbitrage betting, account takeovers, identity theft, money laundering, and age violations. To effectively fight against these types of fraud, companies must implement advanced identity and document checks, together with rough KYC policies.
However, there is a fine line between being thorough as a merchant with your KYC policy and coming up with a complex procedure that might deter possible gamblers. If users feel overburdened at the onboarding stage, they might vanish and take their business elsewhere.
Best practices on building up fraud defence while maintaining a smooth, hassle-free KYC onboarding
Sumsub first recommends using minimal checks during the onboarding stage and enroll advanced checking when making deposits or withdrawals. Similarly, online betting platforms should introduce simplified checks for low-risk users that identify themselves through one document (if it contains both identity and address information).
Finally, platforms should also consider including a liveness check into their verification flows to avoid account fraud.
About the company
Based in Europe, Sumsub is an international tech company that provides an all-in-one platform for detecting and fighting fraud, while maintaining compliance with KYC/ AML requirements worldwide. It has expertise in over 220 countries and territories and can help verify users in less than 50 seconds, on average. Its AI-driven anti-fraud tools are already used by more than 2,000 clients across various verticals, including fintech, crypto, transportation, trading, and gaming industries.