Gambling Industry ? Recognising The Fight Against Fraud : Online ...

May 3, 2013

The internet has far too many benefits to list. It?s now so ingrained within our society that it?s hard to imagine life without it. But for all it?s glories, the rise of the world wide web has enabled new forms of crime to emerge.

Laundering money, identity fraud and other forms of scams have been given a new lease of life by the impersonal way in which many now conduct many of what were once face-to-face transactions. Buying insurance, claiming insurance, transferring money and even gambling can all be done from the comfort of your own home, nearest cafe or preferred mode of public transport.?

Combating fraud in all of these transactions is big business across the internet with Iovation, Verify and Experian among a raft of companies looking out both consumers and website operators alike. While they do manage to weed out a significant number of potential fraudsters, the nature of the internet has always meant that those who are that way inclined have been able to get one over on their victims.

But the fight against these crimes could now be about to receive a boost in the form of facial recognition technology. Facebanx, subsidary of live streaming and video chat company OhHi Technology, has developed this technology to allow sites to reduce fraud and ID theft. After having initially created the technology with stopping multiple insurance claims in mind, Facebanx?s CEO Matthew Silverstone explains how he came to realise that this technology could actually have just as much of an impact elsewhere.

?We?ve realised that the payments and the gaming industry are perhaps our two biggest markets,? he says.

?We?re talking to pretty much all of the household names [in gaming] about our software at the moment.?

?Despite not initially having been created with online gambling companies in mind, Silverstone is not only speaking to operators directly but also payment processors and software companies about licensing the technology. With some companies, these discussions appear quite advance.

Silverstone explains: ?What we?re looking to do for one of the big online gaming companies is that when you register or re-register, as well as registering your details normally you?ll be able to put your I.D. in front of your device?s webcam or camera which will be scan and capture the data.

?We?ll then compare your webcam face to the I.D. photo and the software will use this to prove that you?re the passport holder and a real person. There?s pretty much a 99% certainty that this methodology will be able to confirm that this person is who they say they are.??

Improving the User Experience

As well as the clear anti-fraud benefits for the operator, these type of processes will also make the customer?s experience considerably easier and quicker. Rather than having to scan in I.D., email it to customer support and wait for confirmation ? a process which can take days ? the technology can run through the process described above in 30 seconds making signing up and getting verified a far more user-friendly experience.?

There is even the potential for this face recognition to completely replace the username and password system currently used across the board. It almost seems like a natural progression with players able to log in instantly just by pointing a webcam or their device?s camera at their face. This would be quite a dramatic change but it is just one of the ways in which Facebanx?s technology could be used, as Silverstone explains.

?Operators could use it as a sign on to sign in to a game every time or it could be that they just use it during registration so that they know who the customer is and then they don?t need to do it again,? he says.

?Random testing or targeting specific areas where fraud is common are also other options.?

Fitting into iGaming?

Fraud prevention is already a contested space within online gambling with Iovation and Experian being among the market leaders. But rather than competing with these already established companies, Facebanx?s software will piggyback on top of their products to add an extra layer of protection. There are few places where this protection will be more important than in regulated US states where fraud isn?t the only relevant issue. With ring-fenced nature of the state regulated markets that we?re likely to be seeing more of soon, ensuring that only citizens of the accepted jurisdiction will also be of importance. Silverstone explains that Facebanx?s technology will be able to help in this area too.

He says: ?There are a lot of issues in the US with licences being given out and the problem is that if you live out of state then you shouldn?t be able to log in and access whatever gambling products are available.

?The problem is proving this and you can do this by comparing their driving licence data with the data online. The driving licence has this address and once you?ve got this address you can confirm who they are.?

Games Theory shows you that the more people that use a product, the more everyone benefits. If the gaming industry wants to share data such as facial data, you can stop multiple frauds taking place across several different gaming companies.?

There are two options. One is to use our database to share data or if they don?t want to do that then we?ll provide the technology to have their own standalone system. It depends on whether they?re looking at it for the long haul and sharing data like the insurance industry are to stop multiple claims fraud.

Come from a background of live streaming technology and video chat. Live streaming technology is unique because it allows people to charge from any device. Also do video chats.?

Host a couple of big sites. Lyrics.com is one example. Come from a long history of technology and IT.?

As a consequence of video chat work, came to the realisation that there was a need in the insurance industry to stop multiple claim fraud by asking policy makers to add their face. This was initially done using the video chat software where a customer service operator could do it manually but since then it has become automated.?

So simply by clicking on a button it takes a video stream which allows us to determine that it?s you and not a photo.?

Started off with other industries. Now realise gaming is a big draw.?

Since then we?ve realised that the payments and the gaming industry are perhaps our two biggest markets. We?re talking to pretty much all of the household names about our software at the moment.?

What we?re looking to do for one of the big online gaming companies that we?re talking to is that when you register or re-register it will use the webcam on your laptop and as well as inputting your details you?ll be able to put your I.D. in front of the camera which will be scanned and the data will then be captured. You?ll then compare your webcam face to the I.D. photo and the software will compare them to prove that you?re the passport holder and a real person.?

The data captured from the I.D. will then be compared to the data that you?ve entered and there?s pretty much a 99% methodology of confirming that this person is who they say they are.?

You don?t need to scan anything or send it all in, this is just a 3-second operation and you?re allowed in immediately after.?

United States?

There are a lot of issues in the US with licences being given out and the problem is that if you live out of state then you shouldn?t be able to log in and access whatever gambling products are available. The problem is proving this and you can do this by comparing their driving licence data with the data online. The driving licence has this address and once you?ve got this address and confirm who they are.?

Does it make ring fencing companies such as GeoComply obsolete? Theoretically it doesn?t stop anyone accessing it but would stop people from out of state signing up and logging in.?

It could have stopped a lot of the problems that have already been had in the gaming industry. These operators can definitely get to know their customer.

There?s a lot of exciting opportunities here for online gambling companies to stop money laundering and the fraud that goes on in the payments area.?

Fighting fraud?

Games Theory shows you that the more people that use a product, the more everyone benefits. If the gaming industry wants to share data such as facial data, you can stop multiple frauds taking place across several different gaming companies.?

There are two options. One is to use our database to share data or if they don?t want to do that then we?ll provide the technology to have their own standalone system. It depends on whether they?re looking at it for the long haul and sharing data like the insurance industry are to stop multiple claims fraud.?

User experience. Could even replace logins.?

We?re the data processors, we just handle the database and have nothing to do with the front end. We show a technology to companies for them to interact with their clients and then they choose how they want to use it.?We piggyback on top of others like Iovation. Ours is another layer on top and we?ll work with Iovation, Call Credit and Verify and Experian. We?ll licence it to them.

Source: http://calvinayre.com/2013/05/03/business/recognising-the-fight-against-fraud/

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