All-in-one verification platform Sumsub announced Tuesday it has created a tool to help online gambling platforms calculate potential fraud-related losses during the 2022 World Cup.
“As part of the customizable AI-based verification solution, Sumsub offers its clients advanced KYC infrastructure capable of processing nearly any number of users,” the company says. This will help bookmakers handle World Cup traffic spikes “while ensuring the highest level of fraud protection.”
Although major sporting events bring traffic to betting platforms, cybercriminals and scammers increase in number as well, says the firm. Based on experience with traffic spikes from previous major sporting events, Sumsub experts expect to see a traffic surge of over 400% at bookmakers during the 2022 World Cup in Qatar along with increased fraud.
Fraud has been on the rise in the gambling industry, the company alleges. For instance, in Q1 2022 there was an 85% increase in fake account registrations compared to Q4 2021. To help gambling platforms estimate their risks, Sumsub made a free online calculator. It determines how much fraud might cost during the World Cup depending on the business figures you enter.
The types of fraud that bookmakers experience include arbitrage betting, multi-accounting, identity theft, account takeovers, money laundering, age violations and more.
“To counter these schemes, it is critical to implement advanced identity and documents checks,” Sumsub says. “However, if users are overburdened at the onboarding stage, there is a risk of them dropping off,” the company explained.
Sumsub’s experts recommend the use of minimal checks at onboarding and enroll more advanced checks “when they truly matter,” such as the deposit and withdrawal stages. The introduction of simplified checks for low-risk users that utilize only one document is also suggested, along with the inclusion of a liveness check into the verification flow to avoid account fraud.
Jacob Sever, Co-founder and Chief of Compliance at Sumsub, said: “As an identity verification and KYC/AML compliance provider, we’ve noticed increased fraud and regulatory violations in the gaming industry, and alarming losses connected to this.”
“We know how important it is to quickly onboard customers, but we also understand that you need to be as compliant as possible to avoid fines. Sumsub offers customized solutions and compliance tips specifically for the gaming industry, which we have collected and re-packed on the eve of such an important sporting event,” Sever added. “We’re here to help betting platforms get ready for the biggest traffic surge in years.”
