Jumio Report Reveals Online Gaming Account Fraud Continues To Increase

Over the past several years, Jumio, a company dedicated to providing better identity-as – a-service solutions, has gathered data to determine the severity of account fraud across multiple industries.

Looking at account creates over the past six years, they found that fraudulent account creation–using the online identity of someone else–continues to increase across the board. The online gaming culture, however, seems to have influenced events. 2019 has seen a substantial drop in account fraud following five years of steady rises.

Jumio conducts about 300,000 checks every day, as well as more than 200 million identities issued in more than 200 countries and territories. That rate of routine storage gives it a vortex of information that helps to prevent misuse of IDs and other fraudulent identity activities.

In 2014, the online gaming industry witnessed fraudulent accounts in.85% of cases, according to Jumio’s results. The following year, this figure rose to 1.13 percent and continued to peak at 4.21 percent last year. Nevertheless, in 2019, the figure dropped to 2.52 percent for an increase of 40.21 percent.

It would seem like the UK. A better way of ensuring account identity has been identified, as the country accounted for a new account fraud rate on the gambling market that only reached 1%, less than half of the global figure. However, Jumio reports that, “while the U.K. has the lowest level of full-year new account fraud rates, it saw a spike in new account fraud over the Black Friday/Cyber Monday weekend, coming in at 11% higher than average 2019 fraud levels. This is a stark contrast to the rest of the world, whereby globally, fraud rates were 19% lower during the holiday shopping weekend compared to average 2019 fraud levels.”

Clearly, the international recession can be attributed in part to the deeper downturn in the UK. The reason the country saw a drop was due to the strengthened and tightened laws on know-your-customer and anti-money laundering policies introduced by the UK Gambling Commission. Since these rules have been shown to be successful, it is likely that similar policies could be implemented by other countries.

Philipp Pointner, Jumio’s chief product manager, says: “Often, the first step in identity theft starts by creating a new account online. Identity theft is the deliberate use of someone else’s identity (e.g., name, address, bank accounts) to get money and credit and make purchases. But, identity theft is also being used to perpetrate enterprises to distinguish between high-risk from low-risk users — and this is only going to accelerate thanks to large-scale data breaches, the evolution of the dark web and the looming threat of identity theft.

“All too often, companies rely on traditional methods of identity verification which are not well equipped to detect sophisticated methods of new account fraud. While the U.K. has witnessed new account fraud levels decrease in some sectors due to tougher regulations, all organisations still need to be vigilant and ensure they have the best security in place, particularly during periods such as Black Friday and Cyber Monday, whereby new account fraud attempts clearly increase.”