Sports Betting Brazil: How to Stop Identity Fraud

Sports betting in Brazil has been undergoing a much-anticipated regulatory process, as the country seeks to formally regulate gambling. This represents a massive opportunity for international bookmakers, due to Brazil's vast size combined with enormous, untapped potential. With a population of over 200 million people and a tremendous love and enthusiasm for sports among its populace, Brazil is an enticing market for gambling operators. 

That said, with the strengthening of regulations for online betting and gaming in Brazil and globally, the fight against identity fraud and other fraudulent activities has intensified. 

This is an issue because identity fraud is already a rampant issue in Brazil. Online betting and gaming – despite not being formally regulated and still operating in a sort of grey area – are the most targeted industries by fraudsters, according to Caf data. Once regulation brings more users into the fold, online gambling will only continue to witness an even more drastic rise in identity fraud as criminals see more money-making opportunities. 

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Industry Fraud rates

Currently, Online Betting and Gaming sees the highest fraud rate of any industry, with 1.69% of all transactions being fraudulent. This is higher than even Financial Services at 1.41%, followed by Mobility at 1.27% and eCommerce: 0.69%

What makes online betting and gaming a prime target for fraud? There are numerous reasons but the main ones are as follows. 

Large Volume of Transactions

Online gambling involves numerous financial transactions, including deposits, withdrawals, and bets. The high volume of transactions provides ample opportunities for fraudulent activities such as money laundering and identity theft.

Amount of Money Involved

Online gambling sites often hold large amounts of money, making them attractive targets for fraudsters looking to steal funds quickly and in significant amounts. Users of gaming sites also hold money in their accounts, which can be drained if a fraudster is able to compromise them. 

Failure to Use Identity Verification Mechanisms

It is only with the recently approved regulations that the use of identity verification mechanisms has been made mandatory in the online betting and gaming sector. Otherwise, until now, many operators had not implemented security measures. This lack of effective identity verification mechanisms contributes to the proliferation of fraud in the gambling sector, especially identity fraud, money laundering, and manipulation of results.

Profit potential

The exponential economic growth of the online betting and gaming sector has become a lucrative source of profit for fraudsters. With the number of players surging, opportunities for fraudulent practices have multiplied, posing a constant challenge for operators to remain vigilant against the innovative fraud tactics.

To effectively fight fraud, online betting and gaming operators must be well-versed with the evolving fraud techniques in addition to deploying adequate user verification methods.

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How Caf's Bet ID Can Help

Balancing regulatory compliance with user experience is critical in the online betting and gaming industry. Caf Bet ID is an innovative solution that stands out in the Brazilian sports betting market by enabling operators to achieve this delicate balance in the most user-centric manner.

From biometric verification to controlling bonus abuse, Caf Bet ID prioritizes both security and user satisfaction, while offering a simplified and efficient integration.

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Highlights of the Caf Bet ID Solution

Combating Automated Attacks

Caf’s proof of life technology captures and verifies a user's real image, preventing manipulation or use of false images through code injection attacks or unauthorized commands.

Verification Against Biometric Databases

The user's facial biometric data is compared with the records present in Serpro's biometric database, the official government database recognized as the most comprehensive on the market, as well as with Caf's proprietary database, All.id.

Powerful Document Verification

Our document verification solution ensures the authenticity of the document and the user's identity. By combining automation and human expertise, the solution captures the user's facial image and compares it with identification documents, such as official ID, driver's license or passport.

Bonus Abuse Prevention

Caf’s automated CPF verification, integrated into the Federal Revenue database during the integration process, validates the data and identifies invalid CPFs, ensuring only valid CPFs of adult users are approved. Each number is associated with only one user, thereby preventing bonus abuse.

Optimized UX

To prioritize user experience, Caf's solution uses a simplified and intuitive authentication process, which results in increased customer completion rates, greater engagement, and successful transactions.

Easy Integration

Simple integration of Caf liveness and seamless combination with other technologies improves security posture, and offers a comprehensive and robust approach to protecting users' digital interactions.

Learn more about Caf Bet ID to upgrade security and user experience of your online betting and gaming platform. Schedule a demo today. 

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