How to Perform Accurate Fraud Detection in Online Gambling

Fraud detection in online gambling is a critical concern in an industry that thrives on trust, security, and fairness. As gambling platforms continue to grow and attract millions of players worldwide, the potential for fraudulent activities increases, posing significant risks to both operators and users. 

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Ensuring a secure and trustworthy gaming environment requires a multifaceted approach, combining advanced technologies, regulatory compliance, and proactive strategies. Here are some tips on how gambling operators can effectively detect and stop fraud.

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Robust KYC Processes

KYC is a vital process for sports betting operators to detect potential fraud when onboarding new customers or re-authenticating returning users. It is used to verify the identity of customers and assess their potential risk of illegal activity such as money laundering, terrorism financing, or other financial crimes.

‍KYC involves collecting personally identifiable information from the customer, such as their name, address, date of birth, and government-issued ID, and verifying this information through various means. The information is then analyzed to determine the customer's risk level and the appropriate level of due diligence required for their transactions.

Specifically speaking to the Brazilian market, bookmakers will need to conduct a CPF inquiry for every new user that is onboarded. A CPF (“Cadastro de Pessoas Físicas”) is the Tax ID number given to all Brazilian citizens and foreign aliens who pay taxes. 

Accurate Document Verification

‍Verifying identity documents accurately is another crucial step. To achieve this, operators should implement technologies such as document typing, automatic capture without having to click (just positioning document and face), and OCR to extract data from the document quickly and easily.

Efficient data capture is essential to avoid problems with user validation. This minimizes errors and speeds up the process, making the experience more pleasant and increasing user satisfaction.

PEP, Exposed Persons and Sanctions Checks 

All potential new users should be checked as it pertains to different compliance regulations – such as if they are on PEP (politically exposed persons) lists, any restricted lists or on a country’s sanctions list. Then such people can be rejected or blocked from onboarding as required by law. Businesses also need ongoing screening of already onboarded users to monitor for any status changes or suspicious or anomalous behavior and stop it. 

AML (Anti-Money Laundering) Policies and Procedures 

Operators must have in place policies and procedures to prevent money laundering, financing of terrorism, and proliferation of weapons of mass destruction as part of regulatory compliance requirements in most jurisdictions. 

Higher-risk customers may require additional due diligence, or the intervention of human experts to review documents manually. It is important to customize your workflow to perform the necessary verifications to comply with AML regulations according to your risk rules.

User Onboarding

Keeping the user informed about each step within the platform, from registration to completion, during the onboarding process is crucial. It is essential that the user knows exactly where they are in the process, what is expected of them and how to proceed to complete it successfully.

This not only keeps the user engaged, but also prevents frustration and abandonment during the process. Furthermore, transparency in communication conveys trust in the company and reinforces the commitment to protecting user data.

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Caf: Your Partner in Fraud Detection for Online Gambling

CAF provides online gambling platforms with the ability to accurately verify users, maintain security and comply with regulations through our industry-exclusive solution, Bet ID. From biometric verification to controlling bonus abuse, Caf Bet ID prioritizes both security and user satisfaction, while offering a simplified and efficient integration.

Caf’s expertise and experience in fighting online gambling fraud is well-established internationally. Leveraging the industry-specific knowledge and combining it with advanced technologies, Caf significantly improves the security of online gambling platforms. With the ability to access a vast repository of public and private databases, Caf quickly and accurately validates thousands of unique documents. Furthermore, the latest threat intelligence from Caf’s client network and ALL.ID enables its partners to identify fraudsters engaging in online gambling fraud.

Caf’s user-friendly, seamless, and more accurate identity verification solutions, enable operators to onboard more users quickly and securely, without degrading the user experience.  Caf offers the flexibility to quickly build and deploy multiple identity and authentication workflows that helps fight online gambling fraud deterministically, while maintaining a superior user experience and ensuring compliance with various global and local regulations. Ready to fight online gambling fraud with Caf? Book a demo now.

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