The online gaming industry was already growing before the pandemic. However, the sector saw a significant boost due to the outdoor restrictions in lockdown. Even though the pandemic is almost over, the upward trend in esports does not appear to slow down. According to the World Economic Forum, the online gaming industry will reach $321 billion by 2026. This growth is projected at a Compound Annual Growth Rate (CAGR) of 9.17%, calculated from 2020 to 2026. Since online gaming is a high-value industry, gaming operators must implement an identity verification service. Cybercriminals and scammers are actively looking for unsuspecting players to siphon their money. ID verification can help protect customer interests and build a positive reputation for operators.
What is Identity Verification?
Identity verification services help a company validate a person’s ID by conducting a thorough digital ID check. This process is multi-layered, where the data is first extracted from the user-provided documents using AI techniques. The data is then cross-verified with external databases to maximize the accuracy of validation of identity. On the same note, the system performs various checks on the documents to ensure they are not altered or forged. Thus, establishing the identity of users and clearing them for financial transactions. In short, the ID verification process extracts the data, checks the documents, and verifies the data against databases to confirm the user is who they claim to be.
Why is ID Verification Important in Gaming?
Unlike past, online gaming now involves in-game financial transactions. For instance, in multiplayer games, users spend real-world currency to buy game resources. For this purpose, they connect their credit cards with the payment gateway in the game. Cybercriminals try to exploit this system by gaining access to player IDs. According to reports, global online fraud cases saw a surge of 16.5% compared to the same period in the previous year. Out of this average increase, fraud in the gaming industry increased by 393%. Since the esports market is still nascent, attackers find easy opportunities to scam unsuspecting gamers. However, operators and game publishers need to step up and ensure the safety of their users by implementing online global ID verification.
Benefits of ID Verification
Companies need to implement an advanced ID verification solution to capitalize on the growing market for online gaming. Otherwise, phishing attacks and fraud cases will eat up the profit margins of gaming companies. Apart from providing safe access to the system, authentication of ID gives the following benefits as well:
Improves Customer Experience and Retention
Friction during the onboarding process results in unsatisfied customers and low retention rates. When it comes to digital services, such as online gaming, onboarding is the first and primary impression of the company. If the user experiences obstacles during this phase, they are less likely to continue using the product. In traditional verification methods, human agents perform manual verifications, which are error-prone and much more time-consuming. On the other hand, an ID verification service automates the process making it easy for the user to create an account and begin playing.
Mitigates Financial Crimes
Companies need to understand that fraud and scam cases do not just affect the customers. Instead, inaction against such activities can lead to legal repercussions and customer backlash. Moreover, authorities enforce stringent Anti-Money Laundering policies to safeguard payment services in various sectors. In a gaming company fails to incorporate these policies, it can face violation penalties from the regulators. ID verification enables gaming companies to mitigate identity theft, credit card fraud, and money laundering activities. It protects the company from regulators and maintains a positive image in the gaming community.
One major issue that plagues the gaming industry is keeping minors safe from online bullying and harassment activities. ID verification helps enforce age restrictions in gaming platforms, ensuring underage individuals are not exposed to inappropriate content or online gambling. By utilizing ID verification, gaming platforms can provide more personalized and targeted customer support, ensuring a better overall gaming experience for users.
Future of Gaming with Verified Identity
In 2020, online gamers spent an estimated $21 billion. Even in its nascency, the gaming industry shows signs of great potential for the global economy. Therefore, the industry must unite and safeguard user interests to benefit from the development of online gaming. Whether it be credit card fraud, account takeover, or phishing attacks, ID verification provides a proactive mitigation solution for such activities. ID verification contributes to creating a safer online gaming community, discouraging toxic behavior, harassment, and malicious activities.