Sumsub Expert: Technology Vital for Gaming Industry Regulations

Chuan Wee Lye of Sumsub believes that technology is essential to the regulation of the gaming sector.

Chuan Wee Lye, a senior business development manager at Sumsub, highlights the crucial role that technology plays in standardizing gaming regulations in a dynamic gaming market where financial security is paramount and regulations are subject to change.

The all-inclusive verification platform Sumsub has introduced an integrated solution for compliance, anti-fraud, and user verification that is tailored to the unique needs of the gaming sector.

Lye highlights the significance of addressing the expansion of anti-money laundering (AML) rules in light of the rising need for user verification services, especially in countries like the Philippines that the Paris-based Financial Action Task Force (FATF) recently examined.

The pressure on gaming companies to adhere to stringent regulations is growing as President Marcos attempts to remove the nation from the gray list by October.

But Lye highlights an issue: inconsistent methods to compliance result in an opaque regulatory environment. As European-style legislation become more stringent in Asian gaming countries, gaming operators have to navigate intricate AML frameworks and address the growing issue of fraudulent activity.

Online gaming systems are vulnerable to fraudulent activities, which can range from bonus misuse to money laundering schemes. As a result, robust anti-fraud processes are necessary.

Lye gives examples of how con artists take advantage of bonus offers, use many accounts, and use coordinated betting strategies to launder money.

Gaming operators are depending more and more on artificial intelligence (AI) models for fraud detection and Know Your Customer (KYC) procedures to counter these threats.

AI-powered solutions automate KYC procedures, enabling quick identity verification and in-the-moment player behavior monitoring for questionable conduct.

Deepfake fraud is becoming more common, indicating that the gaming industry is not impervious to sophisticated fraud techniques.

The latest Identity Fraud Report from Sumsub reveals a concerning trend: 1.6% of reported deepfake events in 2023 were related to gaming. This underscores the importance of implementing effective fraud prevention strategies.

Lye calls for a proactive approach that uses technology to enhance gaming ecosystems against expanding threats and create a safer, more transparent gaming environment in an era where financial integrity and regulatory compliance are crucial.”

Original Story by: Asia Gaming Brief