For the gaming industries, fighting from fraud activity is about protecting the sanctity of the game, building brand loyalty, improvement in customer experience and maximizing the profits. Fraud follows only money, and the gaming industry’s prolific growth has attracted a wide range of fraudsters both big and small. According to the Newzoo’s annual Global Games Market Report, the company predicted that gamers would generate about $108.9 billion in game revenues for 2017 and 2018 across multiple device types and segments. It also estimated that of the 3.2 billion active gamers in the world, nearly half (45%) will spend money while playing games.
With online gaming taking off in the UK and the US, now is the ideal time to find the best credit card processing solution for augmenting benefits. In the online gaming industry, merchants know better what it takes to run an effective gaming site. With our gaming merchant accounts, you can have significant serenity realizing that your site will have the capacity to easily acknowledge payments in real-time.
The online gaming industry deals with low-cost transactions that need to be approved in real time so that there is no glitch in the gaming experience. This near-instantaneous analysis of the transaction means reviewing billions of data points of current and past transactions behind the scenes to not only protect the consumers but also protect the integrity of the games, the gaming companies, and the industries as a whole.
Whether it’s taking over gaming or bank accounts, hacking the games, stealing the credentials or developing the bots to exploit games, fraudsters are continually looking to identify weaknesses in the online gaming industry so that they can generate profits. Scott Adams, former director of fraud and risk management at Riot Games, can attest to such challenges. In his role, Scott was given a task of reducing fraud for millions of people who play League of Legends worldwide, focusing on payment processing methods to create a seamless experience for the gamers. He worked with the ecosystem of the fraud industry to ensure the company stays ahead of its fight against Card Not Present (CNP) fraud. With some insight from Scott, here are some of the top fraud schemes that are unique and new to the gaming industry:
Account Takeovers And Synthetic IDs
In this scenario, fraudsters target on gaming accounts with advanced capabilities, special strengths or powers or abilities, or large amounts of game currency and then sell those accounts over and over to unsuspecting, legitimate players. Account takeovers typically may result in the majority of the players not receiving their purchases and a black eye for the individuals game.
Another means of obtaining the necessary information for payment fraud or account takeover is the creation of spoof websites that collect user data from unsuspecting visitors that is unknown. Unfortunately for all involved but the fraudsters, these spoof websites can look exactly the same like the sites they mimic. A site that is spoofed might have a URL that is just similar one letter off from the correct one, making it difficult for trusting users to detect easily. The player unknowingly inserts their login credentials to the fake site or spoof site, which are then sold on the dark web or used for fraud on the real site to take over legitimate player accounts.
Bots are another very serious threat to the gaming industry. Beyond using bots to produce or farm for points, a fraudster can run like referral bonus schemes and refer “new” players that are just bots and using synthetic IDs and stolen credit card accounts is a big fraud. With each referral, the fraudster receives a reward that he or she turns directly into cash or use to boost the value of the account so that he or she can sell it on the dark web for high price and value.
Arbitrage tells or illustrates the sophistication of today’s fraudsters. The proliferation of payment types and most of the growth of global gameplay has led to unique and unexpected fraud scenarios in an online world. In this case, fraudsters load up accounts with a bunch of points in one region and then, taking advantage of currency exchange rates involves Bots, transfer funds back and forth among different types of currency in order to make gains and more profits.
On an individual fraud level, the gaming industry is also facing with friendly fraud, which is when a product, physical or digital, is ordered and then many times it is received disputed as having never been received, received damaged, never ordered, etc. The easy form of friendly fraud results from cardholder confusions, where the billing originates from an unknown company or individual and is poorly labeled on the credit card statements. This can easily be corrected by banks ensuring that the credit card statement reflects a specific game rather than its parent company so that it can easily be identified. The second form is more nefarious and Unwanted it occurs when the gamer, not wanting to pay, disputes legitimated charges. Because the gaming industry deals in digital goods and low-value transactions, this place is under tremendous pressure on gaming companies to prove products or services were indeed purchased by the user. This additional burden usually costs time, money and resources etc.
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If you’re ready to fill out your free application for a gaming merchant account, simply click here to get started, To find out more about IPAYTOTAL’s merchant services for online gaming merchant accounts, Give us a call at +44 800 776 5988 or get in touch with us through our website. We believe transparency and proactive education is the best policy.