It would be an understatement to say that the covid epidemic has had a significant impact on society’s mental health and well-being. The limitations it imposed, such as being confined to homes for who knows how long, posed a serious threat to humanity. The sudden life-changing upheaval was definitely difficult to adapt to as one could see no light at the end of the tunnel. However, gradually, people developed their own coping mechanisms amidst the dreadful confinement. Online gaming was observed to be one widely acquired mode of escapism. Therefore, during the phase of social distancing and stay-at-home orders, this medium was mostly in use by Gen Z and Millennials.
The Growth of Online Gaming Industry Amidst the Pandemic:
As per Entertainment Software Association’s survey, nearly 64% of the US households own gaming devices with children and teens accounting for around 28% of the gamers worldwide. This pretty much explains why it has become a lifeline for millions of people amidst the global pandemic. It became a savior for the isolated people as it allowed them to not only entertain themselves but maintain social connections as well.
Another important observation during this particular period was the increased attention of people aged over 60, looking for online games, joining those aged 18 or above, admitted to gaming, regularly. Unlike Zoom workout or TikTok dance classes that followed age restrictions, the gaming sector welcomed just about everyone. Hence, people of all age groups found much-needed relief in online gaming. Considering that, both Microsoft and Sony generated exceptional growth figures in their revenue, and the console market alone was observed to make around more than $45 billion in 2020.
KYP Compliance in Gaming:
KYP, initials for Know Your Player, are the regulations that fall under KYC compliance requirements. Similar to KYC, the Know Your Player services enable gaming websites to form a protective layer against scams and frauds. By complying strictly with the kyp policies, the company conducts detailed verification of the player by screening his identity information. Once the user passes through the screening stage, the customer’s due diligence in gaming authenticates his identity and labels him free of any potential risks.
Moreover, the gambling compliance requirements, along with KYP regulations, strictly prohibit singing into a gaming platform before following an adequate age verification procedure. Since identifying and verifying the player’s identity is considered the basic requirement of CDD, if proved even a bit suspicious during the process, they are directed to Enhanced Due Diligence (EDD), where additional information is extracted from them. Hence the ability of a company that performs online gaming verification with KYC enhances user experience by quickly and effectively managing the identities, hence allowing the players to play without friction. One significant reason for the up policies to be made mandatory is to deter the scammer’s intention of money laundering and using it for collecting funds for dangerous organizations. Luckily, their attempts have been subjected to failure by the implementation of effective gaming verification.
The Risks posed by Online Gaming:
Although gaming brought relief to people to a considerable extent through KYC compliance, it has a negative side to it as well. The recent surge in the gaming industry and lack of adequate player identity procedures paved the way for the scammers to swoop in with their shady tactics. Hence, people started reporting scam and fraud cases, increasingly. Some risks associated with lack of adequate gaming verification procedures are as follows:
- Credential Stuffing: The easiest technique, mostly applied by gaming scammers, is to steal the player’s personal information by sending a link to a gaming file that requires them to enter their credentials. When the gamers provide their personal information, the fraudster gains access to their accounts and uses them for fraudulent reasons. Moreover, the links often contain malicious software that gets injected into the player’s system as soon as it is clicked on.
- Account Hacking: Once the fraudsters have gained access to the players’ accounts, they proceed to steal their credit card numbers and other personally-identifying information. Scammers generally use stolen credit cards to make fraudulent purchases with such personal information. Furthermore, they exploit the account to take the player’s acquired weapons and armor and sell them on the dark web.
- Phishing Scams: Yet another common practice. The scammers send fake emails or texts to the user claiming their bank accounts to get blocked if not verified by the link that they have provided. Upon clicking the link, the user is directed to a website similar to that of the bank, that requires them to enter their banking details. Once the financial details are entered, the scammers get access to it and use them illegally.