5 Key Factors to Consider When Choosing a Gaming Fraud Prevention Solution

Gaming users invest a lot of time and money in their characters, and fraudulent activity can have costly repercussions for game developers. Fraudulent account takeovers, scammers stealing user-tradeable items, and more can ruin gaming platforms …

Gaming users invest a lot of time and money in their characters, and fraudulent activity can have costly repercussions for game developers. Fraudulent account takeovers, scammers stealing user-tradeable items, and more can ruin gaming platforms and erode loyal player bases.

Combat fraud with best-in-class protection built just for gaming. Learn what to look for when choosing a fraud prevention solution that can separate good players from bad ones without adding unnecessary friction.

Reliability

Fraud is a growing threat to gaming businesses. Account takeovers and phone top-up abuse threaten platform security, steal player funds, and damage brand reputations.

A trusted gaming fraud prevention solution identifies and stops these attacks while enabling legitimate purchases. It also helps companies avoid costly chargebacks and reversals that can cause them to lose revenue and players.

The gaming industry is highly dynamic, with various game genres and monetization models. But regardless of their differences, all games have one thing in common: user accounts that hold tons of value and are susceptible to fraudsters and hackers.

Whether they’re targeting user tradeable items, stealing player credit card details, or making unauthorized purchases, fraudulent activity can significantly impact revenue for video games and gambling sites. That’s why it’s essential to have a reliable, scalable fraud protection system that can be tailored to the needs of each business. 

Scalability

Gaming fraud can be a significant cost for online gaming platforms. If not detected and prevented, it can lead to lost revenue, a damaged brand reputation, and negative reviews in an industry where trust is difficult to build.

The right gaming fraud prevention solutions enable iGaming businesses to deliver more trustworthy player experiences, mitigate risk, and grow responsibly. Look for a solution that provides full-cycle verification with customizable KYC and KYB rules to fit each game’s unique attributes and monetization models.

Ensure your gaming fraud detection tools can handle the volume and speed of in-game transactions and user account creation. Ideally, you should also be able to scale your fraud detection system without disrupting your gaming experience for real players.

Adaptability

The fight against fraud can change faster than fashion trends, so the solution you choose must be able to adapt to shifting patterns. Choosing one that can evolve alongside the threat landscape is crucial for success, especially for gaming companies looking to grow their businesses.

Fraud can cost gaming companies significant revenue, stunting or even breaking them at a vital growth stage. But more importantly, it can damage a brand’s reputation and erode customer trust, making it harder to recover.

For these reasons, the best gaming fraud prevention solutions are flexible, enabling them to quickly respond to new attacks and change tactics. They also provide user-friendly dashboards with insightful data, helping teams identify the most suspicious activities and make informed decisions to keep their users safe. To build confidence in their solution, leading providers offer financial guarantees, promising to cover any losses incurred by fraudulent activity they detect. This helps mitigate risk and improve ROI. They should also be able to provide real-time monitoring and analysis capabilities for SMS-based fraud.

Integrations

A fraud prevention solution can save gaming companies from chargebacks, resulting in severe reputational damage, financial losses, and hefty fines. In addition, it can protect against scams like account takeovers and new-account fraud. However, these threats are constantly evolving, and gaming companies must reassess their internal risk parameters to stay ahead of criminals and maintain their PCI compliance.

A scalable fraud prevention system can help gaming companies reduce these risks by implementing verification protocols that prevent fraudulent users from accessing their accounts, such as multi-factor authentication (MFA). These systems can also detect when a user attempts to hack into an account and flag the attempt to stop it before it begins.

A leading fraud detection solution will provide a data-rich dashboard to detect and identify suspicious transactions quickly. It will combine various data points to conduct risk assessments, including device intelligence, IP address, payment data, velocity rules, and more. This information will then be fed into a fraud detection algorithm to approve or decline actions on a user-by-user basis.

Support

When it comes to fraud, every gaming business is unique. Teams need to recognize this before searching for the right fraud-detection partner. Out-of-the-box anti-fraud solutions may work well enough for some. Still, the right partner will understand what makes gaming payments unique and know how to scope and isolate fraudulent activity with specialized parameters and filters.

Choosing the right solution also requires a clear understanding of the trade-offs. A fraud prevention solution that is too heavy-handed can cause unnecessary friction for legitimate users, ultimately driving them away from the platform. This can be especially detrimental for gaming businesses that rely on user engagement and loyalty programs to drive growth.

Companies often view fraud losses as a cost of doing business. However, this attitude can lead to significant revenue loss and weaken growing gaming companies at a crucial stage in their development. Fraud should always be treated as a serious issue that costs gaming businesses money and reputation and should never be brushed under the rug.

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