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The ransomware group BlackByte published a 292MB file in 2022 that contained sensitive information about the San Francisco 49ers. Bookmakers, like venues, teams and vendors, are also at risk because they handle large amounts of personal data during and after major events.
Sumsub is a verification platform that protects customers with customizable KYC, KYB and transaction monitoring. Sumsub has also provided tips on how to avoid major events.
Expected Traffic Increases
According to Nielsen consultancy, the Big Game drew more than 101 million viewers last year. As more states allow gambling, American gamblers continue to wager on major sporting events. The growth of online gambling was two billion dollars by 2022. This growth was largely due to sports pools.
Sumsub has a history of traffic spikes at major sporting events and expects to see an 83% increase in traffic at sportsbooks during the American football season’s last game.
Bookmakers must be extra cautious, even though major sporting events bring in a lot of traffic to their betting platforms. However, scammers and cybercriminals are increasing in numbers, so they need to take extra precautions. Sumsub CEO Andrew Sever said that manual verification is not the best option because of the increase in user traffic. Therefore, it’s important to look for an automated verification provider that offers an advanced solution for KYC and AML.
It can be tempting to reduce expenses for betting platforms as user traffic increases and verification times take longer. This is particularly true for bookmakers who perform manual verification. It can take up to 24 hours in normal circumstances, and even longer during large events. Bookmakers understand that users will leave if verification takes too much time. They may also be willing to compromise speed in order to verify accuracy.
This compromise is bound to lead to regulatory sanctions. Entain, owner of Ladbrokes was fined PS17million ($20.6million) for failing to enforce anti-money laundering and player security measures.
Surge in fraud
Gaming sector fraud is on the rise. Fraud increased by 50.1% in Q1 2022 compared to Q1 20201. Fake account registrations increased by 85% in Q1 2022 compared to Q4 20201. More fraudsters are expected to flock to the Big Game.
Bookmakers are exposed to a wide range of fraud schemes.
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arbitrage betting
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Multiple accounts
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Identity theft
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Account takeover
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money laundering
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affiliate fraud
Cybersecurity threats
Hacking and big sporting events go hand-in-hand. The more large the event, the greater the threat. Andrew Sever said that hackers can come in the form of hacker groups or political groups looking for sensitive information.
Cyberattacks can range from hacking into match broadcasts or security cameras to stealing personal data of organizers, athletes, and spectators. It is important to secure user data and increase the resistance of betting platforms against hackers.
How can you avoid being harmed while still enjoying high traffic?
Bookmakers face a challenge during major sporting events: how do they onboard users while preserving security and compliance with anti-money laundering (AML) regulations?
An automated verification process allows users to quickly onboard and pass additional checks only when they are really important. Here is a list with all the checks that bookmakers can use at every stage of the customer journey. These suggestions will help you make your flow more fluid.
At the time of registration, request a minimum number or checks. Platforms may restrict the collection of names, checking email addresses and phone numbers when a user registers first time. The user is then more familiar with the service, and will be motivated to complete the entire verification process if he wants to place a wager.
When appropriate, use simplified checks. Bookmakers can create a simplified check for low-risk customers by using one document. As long as the document contains information about identity and address, This reduces the need to upload additional documents to verify an address and increases approval rates.
When users make their first deposit, they can add additional checks. To verify that the cardholder is actually making a deposit, additional checks could be performed such as facial biometric verification or bank card verification.
Facial recognition can be used to stop fraud. This prevents fraudsters from creating multiple accounts. Biometric verification is required when users log in to their accounts or retrieve them. This ensures that it can be hacked by fraudsters. It’s even more crucial to use it during the withdrawal stage, as this is where most fraud occurs.
These checks can be added to the flow to reduce verification time while still ensuring security. Kaizen Gaming, for example, switched from manual verification to Sumsub’s automated solution. This reduced the average time it took to onboard and also increased their overall performance by 350%. All this while eliminating fraud.” concluded Sever.
Discussion: Networking event for London’s gambling professionals
Sumsub, in partnership with Sardine (an industry leader fraud prevention platform), announced Gambling Pros Party. This private networking event is for gambling professionals and will be held at Clays Canary Wharf in London, on February 6, 2023, at 18:30 UK Time. This event is for professionals, businesspeople, and experts in the gambling and betting industry.
Participants are restricted to gambling professionals and are free. To save your seat, please register with your business email: https://www.eventbrite.com/e/520357091067/?discount=Sumsub
