1) What are the major forms of fraud affecting egaming in 2011 and what are you doing to deal with these threats on behalf of operators?
Fraud can be very specific to particular gaming channels and major forms include charge backs, identity theft, first and third party fraud and various forms of bonus abuse.
At GB Group we take the approach that an end-to-end view of the customer is the most effective way to counter fraud opportunities. In using multiple data sources we aim to identify multiple flags and assess any correlation to produce alert flags for potential fraudsters relevant to clients' business models. We constantly add to our already extensive range of data and enhanced software to cross reference data in real-time.
With this as our driver, we recently integrated our global Device ID check provided by Iovation and a community-based check, powered by Ethoca. Both checks are accessible through one single platform. Our velocity check allows operators to screen against previous applications that have provided identity information to repeatedly commit fraud.
GB Group also offers a constant analysis of data to identify fraud as it comes through and enables operators to address it immediately.
2) Are there any new forms of fraud emerging that operators need to be aware of? What damage are these having on businesses in the sector?
Mobile Gaming is a new growth area for operators and we can expect fraud risk to increase in line with this. The input of data is more cumbersome via a mobile and operators try to strike a balance between getting enough data to confidently verify individuals and easing the customer journey, without being intrusive to a point at which customers will drop off. Operators using this channel have a reticence to the use of 3D Secure due to the complicated nature of the process.
GB Group's mobile phone verification allows an operator to validate numbers and, combined with a range of global identity verification checks, put substantial barriers in the way of fraudsters.
Identity theft is still one of the fastest growing types of fraud. To counter this we use our matching technology to triangulate different data sets globally, making it much harder for fraudsters to succeed.
3) How is the move from dot.com into dot.country regulated markets in Europe affecting the work you do in the egaming sector?
It is important to have solutions in place to counter fraud in international markets, as global growth is key to many of our clients. That's where we have invested heavily over the past twelve months and this will remain important to our future product roadmap. However, the challenge for all providers is to source quality data that will fit legal requirements.
GB Group's aims to move countries to our tier 1 status, which equates to offering the same or better data sources expected in mature and secure markets such as the UK. Our objective is to source and obtain the breadth of data that is globally available. There is lots of clever stuff happening, but where we add value is pulling it all together.
Although there are big markets in Europe, finding the right data is even more important in Asian countries, where information is very hard to find. That's where GB Group's international expertise and knowledge comes in.
Overall, we have found better quality data not only helps to verify customers, but also cross reference data sets, increasing the changes to spot potential fraudsters internationally.
4) Although gambling transactions are often viewed as high-risk transactions by card issuers, what is the reality of 'chargeback' in this sector compared to other online businesses and how can you help with this?
Chargebacks are an ongoing issue, but we do not believe gaming is at any greater risk than some other sectors and there is an argument to say the market is more sophisticated than most in countering this risk.
The larger operators move more towards 3D Secure to shift liability from the merchant to the card-issuing bank. Used in isolation, this will not be completely effective, and we always advise to enhance this with other fraud and identification checks.
5) The sector is arguably still seen as more prone to cybercrime than other sectors. Why do you think this is, and how can this be addressed?
We think online gaming is at the forefront of addressing cybercrime. Reputational risk is often a key to this and at GB Group we have made sure, through our ISO 27001 qualification and Payment Card Industry (PCI) accreditation, that we can enhance our client's reputations by ensuring their data is secure.
6) What role are new and emerging technologies playing in the fight against fraud in the egaming sector?
New technologies and data sources are invaluable components in the fight against fraud and at GB Group we constantly invest in both of them to support the egaming sector. The real advantage of our Identity Management solutions is that, through the use of our propriety technology, we give access to the widest and most current levels of UK and international identity data.