A lot of corporations aren’t aware of the importance of age verification. Due to illegal activities on their site such as underage gambling and money laundering, they had to pay millions in penalties. Considering the situation the regulatory authorities have enacted stringent legislation.
The Gaming Commission of the UK changed the identity verification and Know Your Customer laws for online gambling businesses. Before onboarding players, the revised legislation requires online gaming websites to confirm their players’ names, residences, and ages. It’s also a good idea to double-check the previously registered participants.
Businesses must acquire in-depth knowledge of age verification, its methodologies, and its benefits in light of recent changes in the age-verification regulations. Several organizations require age-verification technology in their systems for various reasons but are unclear about the necessity due to a lack of knowledge.
What is Age Verification?
Age verification is a procedure in which a user’s/identity document is reviewed to see if the age information given is accurate. Thie process can be performed manually or automatically. Because of the considerable likelihood of human error and the complexity of the process, manual testing is not widely used.
Many firms are turning to online age verification to alleviate this challenge as evident from Shufti Pro news. It facilitates firms to verify age for conducting a better KYC or KYCC procedure across the globe.
Process of Online Age Verification
Age verification online is a quick method that produces results in no time, saving the compliance department as well as a fraud officer a lot more time and work. For this reason, many firms are accepting global investments such as Shufti Pro funding, done by Update partners.
- The end-user must enter their date of birth and present their ID Card or another form of identification containing the date of birth (passport, driver’s license, etc.).
- The system checks the document for default formatting and compares the birth date on the document to the one entered by the user.
- The findings of the verification system are presented to the end-user once the age is verified and revised in the back office when it is completed.
Why Gaming Sector Need Age Verification Solution?
The following are some of the major main reasons why gaming sites need to confirm their users’ age:
Online age verification is a quick method that provides results in under a minute, saving the fraud officer and compliance department a lot of time and work.
Regulatory compliance is generally one of the primary reasons why companies have to confirm the age of their clients. Regulations in multiple countries, such as the United Kingdom and the United States, have made age-verification mandatory for specific enterprises, with heavy fines applied in case of non-compliance.
Regulatory compliance aids in the development of a company’s credit score and market value.
Corporate Social Responsibility
The operations and efforts of a firm that do not yield monetary benefit but assist it to improve its brand image and market value among the public are referred to as corporate social responsibility.
Companies offering age-restricted items should perform age checks to demonstrate their dedication to the public benefit. Daily, kids die as a result of the harmful use of alcohol and drugs; in 2015, 442 kids died in the United States as a result of a drug overdose. Alcohol retailers should utilize age verification to help reduce the number of deaths caused by underage drinking.
It will assist the liquor store in establishing a reputation as a socially responsible and regulatory-compliant enterprise.
Risk of Fake Identities
Kids use their elder’s or parents’ identity cards to make online purchases. If a company does not utilize identity verification in these situations, it risks losing its reputation and facing sanctions.
Identity thieves who exploit the profiles of others to obtain free services and perks are another potential threat to financial firms. Needy persons are frequently provided benefits such as pensions and old age funds. Malicious actors may create false identities to illegally obtain those benefits.
The regulatory bodies are monitoring digital gaming and gambling sites very closely. Before onboarding new players, they must conduct a thorough KYC on individuals, and age verification is a requirement of the law. The primary motivation is to reduce youth gaming addiction. Furthermore, the majority of these websites are not appropriate for minors.
By offering global coverage in age verification, digital age verification assists gaming enterprises avoid the possibility of noncompliance fines. It makes regulatory compliance less of a bother by delivering results quickly. It helps firms in retaining legal clients while also preventing minors from entering the premises.