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Need for Novel Methods in the Digital World to Reduce Fraud in Online Gaming

In: Game

While all industries faced a lot of problems, the gaming industry boomed during the COVID pandemic. According to a survey, approximately 1 billion people worldwide play online games each month. The industry of online gaming reached $159 billion in 2020 and is estimated to cross $200 billion in 2023. This surge not only fascinates players and gamers but also attracts cybercriminals. Online gaming platforms are a popular target for fraudsters because gaming operators do not follow KYC regulations properly. Consequently, the gaming industry and its clients have to bear massive financial losses. Gaming operators should implement the proper identity verification methods to reduce fraud in online gaming industry.

The Risks of Online Gaming

Most people think online gaming is a harmless activity. But they should need to think twice after knowing its risks. Below are the risks associated with this industry:


Sometimes, to play a specific game, players are directed to download a plug-in of software. Then, they prompt the user to those websites where malware applications are presented to break the player’s device’s security. During installation, players unwittingly allow viruses onto their gaming system by installing in-game files that contain viruses.


Usually, hackers send an email or a link to the player by adding some promotional content or additives to the game. If a player is trapped in their honey trap and clicks on the given link, then they can hack the player’s account. After successfully hacking, they can delete and sell anyone’s account to a third party.


Addiction is one of the biggest risks to the gaming industry. Addiction to gaming can lead to a massive loss of time, restlessness, health issues, and negative changes in behavior. 

Frauds in Gaming 

The gaming and gambling industry, which provides the best form of entertainment, also has a lot of challenges. Money loss, data breaches, and money laundering are all possible outcomes of online gambling scams. Some of the frauds are explained below:

Account Takeover

Account takeover includes outright stealing of login credentials, deceiving the call center agent, and even sending a lot of malicious emails out to expected targets to fetch player data from them. Fraudsters with many accounts can engage in a wider range of scams on gaming and gambling websites.  


Online gaming and gambling are especially vulnerable to cheating because they can have a significant effect on the user experience for actual players. Without identity verification, fraudsters can use multiple accounts to manipulate results and exert pressure on other players to leave the game. 

Chargebacks and returns

The chargebacks and returns are easily available to everyone other than professional fraudsters. Consumers can also commit “friendly fraud” by requesting refunds for games they have already bought and fully enjoyed for no reason. 

How to Reduce Fraud in Online Gaming

The online gaming industry is all about community, and community having fraudsters can ruin the experience for everyone. So, for the sake of security, it is necessary to find online gaming fraud before any big loss. The following are multiple ways to reduce fraud in online gaming:

Identity verification

Identity verification document is the method of authenticating the identity of a person. It can verify a player’s identity through their identity card, driving license, or passport. Gaming operators should first verify that the person is real and then allow them to play.

Two-factor authentication

One of the best methods to reduce fraud in online gaming is to use two-factor authentication. In this method, two things are needed for logging in; one is a password, and the other is a phone number. After entering the password, the player’s account sends a code to their phone or email. It is a must for players to enter the code before accessing their gaming accounts. 

Ignore Unknown Links and Emails

Players should never click on unknown links that redirect them to third-party websites to reduce fraud in online gaming. They should only use official sites for any game-related purchases. Ignore the emails that are asking for bank details or login credentials, whatever they look like to be legitimate.

Using a Strong Password

Setting a strong password to login to a gaming account is always helpful to reduce fraud in online gaming. A password that includes symbols, numbers, and upper and lower case letters is always hard to crack. It is best not to set the same password every time for different accounts.

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Today, online gaming fraud has increased terrifyingly. Fraudsters attack gaming platforms with the help of modern technology. Cybercriminals steal money by deceiving players and gaming operators. The money is then used for terrorist funding, money laundering, and other illegal activities. So, gaming operators and players should also take preventive measures to reduce gaming frauds. Identity verification methods, two-factor authentication, creating strong passwords, and ignoring malicious emails and messages are utilized to reduce fraud in online gaming.


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