The rise of criminal activities on digital platforms has increased and it has perplexed the gaming service providers. Digitization has introduced new gaming features in the games because players can buy in-game items through the latest payment methods, as per Shufti Pro news. The advancement has also made gaming platforms vulnerable to hacking attacks. The global regulatory authorities have noticed the increase in crimes. They want to enforce AML/CFT regulations as soon as possible, according to Victor Fredung. The bad news is that both gamers and online Identity Verification Solutions providers are the victims of such attacks.
Online Gaming Platforms – How Do Cybercriminals Expand their Criminal Networks?
The use of creative and complex hacking methods shows how vulnerable the gaming industry has become. It also means that there is huge financial profit in the industry that criminals want to put their hands on, according to the Shufti Pro report. In this context, all the stakeholders should practice caution and stick to the security measures, they should use Shufti Pro services. A major factor that makes money laundering possible on these online platforms is the real-world value of in-game items. For example, gamers can buy special swords, armor, and unique healing potions offline from other players in exchange for real cash.
The Role of Micro-Transactions
Additionally, some players also use cryptocurrencies to buy in-game specialties. These types of transactions are micro-transactions. For instance, games like Entropia allow in-game purchases between players. Scammers can get away with their suspicious activities because local regulatory authorities do not manage the gaming platforms strictly. In this way, fraudsters can use their illicit money to buy special items in the games. Later, they can sell them for a discount and gain actual money from the transaction.
As per Shufti Pro news about Sixgill, fraudsters were using the above strategy with the Fortnite store and then selling the valuables on dark web/ social media platforms with discounted rates. Some fraudsters have even gone further and they have developed automated solutions for the completion of their plans. They used multiple fabricated Apple IDs to buy special items in the games. The responsibility also goes to payment processing companies because they are unable to spot suspicious monetary transactions. Shufti Pro services can support them in their objectives.
The Importance of AML/CFT Regulations in the Gaming Sector
There is a lot of negative impact on the gaming industry because of increasing financial incidents. The global watchdogs want to minimize the money laundering cases so they have raised the standards of precautionary protocols. Moreover, according to the guidelines, online gaming platforms should be regulated under AML/CFT guidelines. The regulation amendment in Oct 2018 also emphasized it. FATF recommended that companies should verify the identity of their customers, track their behavior and immediately report suspicious activities to the higher authorities. The Shufti Pro solutions can play a critical in reducing financial crimes efficiently.
The Warning of the BSP (Bangko Sentral ng Pilipinas) about Identity Theft
The BSP said that users should keep an eye on people who engage in scams. It is because cybercriminals take advantage of the borderlessness of the platform to carry out their illicit activities. Moreover, the central bank has highlighted such platforms because they have gained the support of the local community. The bank said that the transactions on online gaming platforms have elevated levels of anonymity which make it harder to subject them to KYC policies.
What Are the Future Trends for Shufti Pro’s Identity Verification Service?
Shufti Pro’s Identity Verification service is about validating the identity of a client to ensure that a genuine personality will benefit from the services of the organization. In light of the continuous digital revolution, Shufti Pro’s identity verification has become a critical need of modern times. This is to ensure business security as well as a positive customer experience. There has been so much advancement in the technology that customers can get authentication results from the comfort of their homes, Shufti Pro solutions. There is a bright future for the widespread use of identity verification software.
The identity verification technology has evolved from ID card verification and age verification to more complex features. Now users will be able to perform remote biometric verification and sophisticated business operations monitoring. All of these steps ensure a seamless experience for the users which is important for maintaining Shufti Pro’s brand loyalty. This successfully creates revenue-generating opportunities for the business and other financial institutions.
To sum up, the increasing risk of financial fraud in the online gaming industry has alarmed the stakeholders. If security measures are not taken immediately, it will badly impact the image of the business in the market, as per Shahid Hanif. But the integration of artificial intelligence and machine learning algorithms has enhanced the efficiency of identity verification by Shufti Pro solutions. They help organizations with complying to the AML/KYC guidelines. In this way, financial institutions can safeguard themselves from money laundering and identity theft cases. Hence, Shufti Pro supports the implementation of identity verification solutions in all business sectors.