Investing in gaming fraud prevention is crucial for any online gaming business. Fraud prevention services help you avoid losses caused by human and machine-driven fraud. In this article, we will look at human-driven fraud, chargeback fraud, and AI-driven fraud.
Human-driven fraud
Bots can be deployed to resell in-game assets and generate profit. This can use automated ad programs or multi-step attacks. In addition, the bots can harvest credentials, validate credentials and sell in-game currencies.
These bots have become so sophisticated that they can be used to take over legitimate users’ accounts and make fraudulent payments. The bots can be accessed through phishing, credential stuffing, or spam emailing.
The human-driven attacks have increased in the past six months. This growth is attributed to fraudsters leveraging the sweatshop-like workers of countries like Ukraine, Thailand, and Vietnam.
As the number of gaming players increases, fraudsters are developing new ways to commit online crimes. They also use bots to take over accounts and resell in-game assets. They take advantage of the increase in gaming traffic and the low payment barriers to steal in-game currencies. The in-game purchases are worth over $50 billion.
The rise of human-driven attacks has also impacted other industries. For example, the Arkose Labs Fraud and Abuse Report for Q4 2019 show that human-driven attacks increased from the previous quarter. The report also details the increased number of sweatshop-driven attacks.
Fraudsters leverage the low cost of human labor in sweatshops to deploy credential-stuffing attacks. This allows them to generate profit and augment their attacks. In Q4 2019, sweatshop-driven attacks from Thailand and India grew.
AI-driven fraud prevention
iGaming is a hotbed for fraud and cyber crimes, but companies can reduce the risk of fraudulent activity with AI-driven gaming fraud prevention solutions. These solutions provide a seamless gaming experience and protection from chargebacks and promo abuse.
A good AI-driven fraud prevention solution can help thwart sophisticated abuse attacks. It can also identify if a new account is fraudulent, reducing friction for legitimate players. This can increase customer satisfaction and lower costs associated with traditional call centers.
The right mix of products and technologies is necessary for a practical solution. This includes a scale-out architecture for data ingest and tools for training at scale. This can help reduce customer queries and respond faster than a human. However, it also requires a system that can scale out and support non-stop operations.
A good AI-driven gaming fraud prevention solution can detect a problem gambler 99% of the time. This is due to the algorithms’ ability to identify thousands of factors. It can also analyze historical data for more comprehensive insights. This can help game companies detect suspicious behavior, identify patterns in iGaming, and improve customer satisfaction.
It’s also important to note that AI is not the only tool available for fraud detection. The right mix of products and solutions is the best way to combat fraud.
Chargeback fraud
Having effective chargeback fraud prevention is essential to a video game business. The industry is a target for fraudsters and has a vibrant secondary market. It also faces some unique challenges, combining risk management with profit scaling.
One of the most effective ways to prevent chargebacks is to give refunds to customers. This will help avoid the high fees and time wasted battling fraud.
Another trick is to provide clear, concise information about a purchase. This will help make sure the cost and benefits are precise. You can even offer a way for customers to check their orders before they finalize. Again, this will reduce chargebacks from people who need more time to be ready to pay.
If you sell a video game online, keep your customers informed about how to avoid chargebacks. They may be tempted to spend money in the heat of the moment. But on the other hand, they may need to be aware of the refund policy or realize they made a subscription.
The best way to protect your business is to create a system that matches chargebacks with sales transactions. This can be done by maintaining a database of identifying information or updating your policies.
Please provide a receipt with every purchase. This will help ensure that a chargeback isn’t issued and that you can show a valid one to your customers.
Mobile gaming
Despite its popularity, the mobile gaming industry is plagued by fraud. Therefore, gaming companies need to develop a comprehensive strategy to minimize the risk of fraud. The right tools can reduce fraud and protect your business from losing revenue.
There are many types of fraud. Some are simple to recognize. Others are more complicated. Fraud schemes include using malware to monitor app store activity. Others are human-driven, such as scam artists who charge gamers for fake gaming goodies.
Fraud can be difficult to detect. A good fraud prevention solution will monitor suspicious transactions and identify new gaming accounts. It can also identify promo abuse and payment fraud.
It can also revoke entitlements and perform clawbacks. Having an anti-fraud solution in place can preserve your business’s long-term success.
Gaming accounts are one of the easiest targets for theft. Fraudsters can steal personal information and credit card details. They can then use these credentials to purchase gaming currency or digital goods. Some fraudsters will also load accounts with in-game purchases.
Fraud can cause a bad user experience. Some users become impatient when they realize their gaming experience has been compromised. It can also result in a damaged reputation. That can cost a game developer profit.
Mobile gaming is snowballing. With this increase in traffic comes a risk of fraud. Fraudsters are looking for an easy target.