A study by the Gambling Commission between July and September revealed that individuals who engaged in gambling before the lockdown tended to reduce their spending during the initial lockdown phase.
Approximately 12% mentioned spending more, while 25% reported spending less. As restrictions eased, fewer people altered their gambling expenditures. Seven out of ten individuals (70%) stated that their spending remained unchanged compared to before the lockdown.
The survey shows that more and more people are playing games and gambling online. Today’s technology makes access even more convenient. However, like two sides of a coin, technology also has disadvantages, which can lead to data leakage, fraud, or other criminal activities.
In January 2023, one of the biggest names in the gambling industry, 888 Holdings Plc., suffered a big blow due to compliance failure. Its CEO, Itai Pazner, stepped down from his position after the company went under scrutiny for potential failure to prevent money laundering and verify their VIP customer identities. The company shares plunged 26% immediately after the announcement, the lowest ever for 888 since 2006.
To avoid more cases like that, operators have become more vigilant. Security measures like KYC (Know Your Customer) can protect companies from the risk of fraud and other criminal activities. The primary purpose of KYC standards is to protect financial institutions from illegal activities such as fraud, corruption, money laundering, and terrorism funding.
KYC involves a thorough process, including verifying customer identities. However, it also goes beyond just ID checks. It means grasping customers’ profiles, from affordability to spending behaviour, and ensuring the money they use comes from lawful sources.
With the rise of responsible gambling awareness, companies can benefit from KYC, as it verifies whether a visitor can sign in as a player. For instance, many providers are performing KYC data checks for gambling operators in South America as the region sees even more growth from the industry.
The Importance of Data Verification
Scammers are attracted to gambling websites not only to steal from individuals but also to cheat gambling companies. Some might try to bypass the age or geo-restrictions, but some might have a more sinister agenda: scam. Scams come in various forms, and some are even used for money laundering from other crimes.
The most common online gaming scams are used to steal personal information. This can happen in different ways. Scammers might use ‘phishing’ tricks by sending players a link that convinces them to click on it to download a file, they might say that it’s an important letter or new game installation file. However, these are secretly harmful software that can peek into a player’s device, allowing scammers to learn their login details, including access to their online banking.
KYC procedures ensure that all customers are really who they say they are by checking their essential documents and following the rules. They keep information about customers to make it harder for people who want to trick others. Later on, if there’s a problem, this information can significantly help the authorities track what actually going on in a transaction.
