We're not sure if you have heard, but online fraud is on the rise. Alarm bells have been ringing more and more loudly thanks to a series of figures published in reports made by top online gambling organisations. Those reports clearly indicate that fraud isn't just a problem now, but an ‘epidemic.' This has led to experts in the mobile gambling industry making calls to tackle it and to do so quickly.
But what can be done about it and how can it be stopped? The answer, according to one expert, is Artificial Intelligence. And not just any Artificial Intelligence, but sophisticated Artificial Intelligence. Is this just another step fraudsters will find a way around?
The Fraud Epidemic
As mentioned, online fraud in the mobile gambling industry has reached critical levels, so much so that it is being labelled an epidemic. In the UK alone, fraud prevention organisations have reported that there are at least 500 reported cases of fraud a day. That means in 2017 so far 89,000 cases have been made against fraud. That's a staggering amount and quite worrying, seeing as the number last year was lower than that.
What can this be attributed to? Are fraudsters really getting smarter or are mobile gambling organisations getting too lax in their security? While we have no doubt that mobile casinos (especially us at GoWin) are ever-vigilant when it comes to fraud, they can't be there all the time and not all security measures are perfect. There are going to blind spots and it's just going to take time for the fraudsters to find them.
An AI Solution
According to Jamie Miles who works for OnFido, fighting fraud is like a game of cat and mouse. Watchdogs are constantly hunting for the felons and the chase always feels circular. They either end up in near misses or the fraudsters always slipping from their grasp. That makes guarding the financial aspects of mobile gambling an extremely difficult task. It requires that each and every casino scrutinizes every player to make sure that they won't cheat the system.
The best solution in answer to this problem, according to Miles, is to constantly ‘upgrade the cat' to make it capture the mouse once and for all. This function is served by Artificial Intelligence. It is constantly getting smarter and smarter, therefore so is the security. Facial recognition, for example, could be an effective measure to prevent fraud. That'll certainly make it hard for fraudsters to imitate. Faultless document checking could be another example.
“If, say, you are uploading your identity document, you could be completely genuine,” Miles said. He then went on to explain that one person can create multiple accounts using documents from their relatives or friends without their permission. A thorough scan of one customer's own personal documents could help prevent this kind of fraud in particular.
Invasion Of Privacy?
These measures to most people might seem somewhat drastic. Why would you need facial recognition just to log into a mobile casino? The mobile gambling industry may have a conspiracy on their hands. Plenty of people would start to think that the government is trying to use this technology as a means to keep an eye on its citizens and use that data for nefarious purposes.
It's hard to verify such claims though it's definitely a risk as fraudsters could take anything from your face to your address. Well, maybe not your actual face. That would be weird. But then, this technology is already in full implementation by websites like Facebook that use it to identify tagged friends in photos.
If you can live with that then surely you can live with a bit of increased security. However, the need for privacy is an important issue, which is why in accordance with the ever changing world, the Data Protection Act is next year being replaced by something that is much more updated and adapted to this modern, digital world.