Gaming and Fraud:

Strategies to Monitor the Rising Market

September 29, 2021

In recent years, starting in early 2006, the probability of fraud within gaming has grown along the numbers of new users, with the use of micro-transactions and virtual currencies that can cross platforms and digitalization. Head of Risk Services at the American Concrete Institute (ACI), Erika Dietrich, walks us through how the company is giving its customers tools to combat malpractices without impacting genuine players.

“From ACI data, we see that 28% of all fraud attempts in gaming are from people with no previous recorded history over the last two years. This means that new gamers are 3 times more likely to attempt fraud than previous customers”

New fraudsters are making use of different tools available, including the use of Secondary Markets, Account Takeover (ATO), and the different types of gaming payments available, which include retail, digital download, micro-transactions, and in-game currency.

Fighting Fraud

To combat the fraudulent use of Secondary Markets and ATO, ACI looks at each individual type of market and targets it accordingly, this includes working with marketplaces to help identify and take down illegal items from accounts and making the value of resold items void. This approach also makes sure that a genuine gamer is aware that they might be purchasing illegally acquired items.

The way to combat ATO includes monitoring purchase behavior from their established customers, this includes tracking their devices or location to determine whether a purchase has, in effect, been made by the account owner, or if the account is being used by an unauthorized third party and therefore compromised. According to data, ATO has grown by 114% in 2020 and it is likely to increase exponentially in the following years.

With the different types of gaming, a different, more nuanced approach is necessary, as digital points and currencies are exchangeable from user to user, and they can be exchanged across different companies and platforms, the answer can lie in shared intelligence, fraud screening, and making use of a multi-acquirer strategy.

These strategies vary and an individual approach is needed on a case-to-case basis. Taking in account the different regions, payment types, or markets used. A company’s focus is customer satisfaction, therefore ACI helps with keeping tabs on account behavior, not only to prevent fraudulent behavior, but to study and enhance customer satisfaction. Machine learning is a necessary tool that helps, but you also need an expert’s oversight to keep track of trends in the rising market. Both fraudulent and not.

Alto Global makes use of ACI to track customer behavior and prevent fraud, ensuring maximum customer satisfaction and lower risk to merchants.

Want to learn more? Check out ThePaypers’s full write-up on combating fraud on gaming here.

Have you encountered fraud in a gaming platform? Share your thoughts on our LinkedIn page.

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