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KYC verification is a vital part of anti-money laundering measures adopted by the online gaming industry. Companies like IDenfy are streamlining how gaming operators carry out KYC checks.
KYC verification has become part and parcel of every licensed online gaming platform. Unfortunately, in terms of user experience, it is usually perceived as a pain point. However, KYC verification is important for the security and integrity of the online casino operator/online sportsbook and the individual consumers too. Thankfully, innovative companies such as IDenfy have come up with less cumbersome ways to undertake and complete KYC verification than what is currently in practice across the industry.
However, before we dig into IDenfy’s new verification product, let’s briefly touch upon what KYC verification is and why it is mandatory in the online gambling sector.
The online gambling sector is growing overwhelmingly and is forecasted to be worth double of what it was worth in 2019 by 2023. It is estimated that the online gambling sector will be worth just shy of $100 billion by 2023. One of the rare few sectors that received a boost due to the COVID-19 pandemic and its subsequent restrictions is the online gambling sector. While other sectors took a massive hit, online gambling grew leaps and bounds. With players having no access to brick-and-mortar casinos, millions took to online casinos and online sportsbooks for the first time.
Who Enforces Regulatory Compliance in US Online Gambling Platforms?
With many billions of dollars flowing through the industry coupled with a lack of face-to-face B2C interaction, it can easily become a cesspool of money laundering practices by unscrupulous parties. Licensed online gambling operators are legally obligated to enforce procedures to thwart money laundering. The Financial Crimes Enforcement Network is in charge of ensuring that the Bank Secrecy Act‘s anti-money laundering provisions are followed. By recognizing, flagging, and reporting certain suspicious behavior and transactions, financial institutions must assist the government in detecting and preventing money laundering. The Internal Revenue Service has been delegated this obligation by FinCEN to guarantee that compliance standards are met.
Why KYC is Required in Online Gambling
The necessity to eliminate money laundering and terrorist financing is one of the main reasons to push and ensure KYC verification is done without fail. If candidates and players are not subjected to rigorous KYC, the platform might be exploited to launder money and funnel funding to harmful groups. Many rules have been enacted to discourage such behavior, and most gaming organizers and organizations are required to follow them.
IDenfy KYC Verification Makes Tricky Phone Number Verification Easier
Taking care of online gaming firms’ KYC and identity services, IDenfy has recently introduced a cutting-edge variation of its phone verification product. This is great news for all those game aficionados who love playing on their mobile device while on their commute. Additional security means never missing out on the latest UK no deposit bonuses and other various promotions when playing your favourite online slot.
So, what makes IDenfy’s KYC verification product so unique and desirable? Security and the protection of Personally Identifiable Information (PII) have become crucial in the modern-day webscape for both operators and their players. Shortfalls in security have become glaringly evident as a result of the pandemic.
IDenfy’s solution seeks to examine the data given by the player to address these challenges. While validating the customer’s personal info like name and address is pretty simple, verifying the player’s cell phone number is usually problematic. Players can simply make up a phone number during registration. Some operators resort to sending an SMS OTP (one time password) to the number provided by the player and then asking the player to type in the OTP to complete registration. However, this too can be worked around by tech savvy players who simply use a virtual burner sim card.
By using IDenfy’s phone verification service, operators get a detailed report about the phone number and this can be used for a double verification post the OTP process. IDenfy’s system is capable of analyzing any phone number provided and spitting out a report detailing the risk factor associated with the given number. The operator then has the freedom to decide how to handle high risk phone numbers. Typically, these flagged phone numbers can be subjected to manual verification by someone from the operator’s compliance team actually calling the number and talking to the patron in person. Alternatively, the casino operator may also decide to simply deny membership to anyone trying to sign up with a high-risk phone number as flagged by the IDenfy software.
In the report made available to the casino operator, the IDenfy tool will provide essential data to measure the risk factor connected with a phone number and provide recommendations for action. Customer location, roaming nation, current network availability, validity, and phone contract will all be included in the report.
Together with the OTP verification process, the IDenfy tool can be highly valuable to online casino operators that are keen on avoiding high-risk account registrations. Genuine online casino and online sports betting enthusiasts will have no issue disclosing their phone number and other personally identifiable information if they wish to receive regulated, licensed and high-quality gaming services over the internet. Some players who use a temporary burner number simply because they don’t like disclosing their actual numbers may have to reconsider and provide their real number if they wish to play.
