Sumsub new tool to estimate fraud losses for betting platforms


All-in-one verification platform Sumsub has announced the launch of a new tool designed to help online betting platforms calculate their potential fraud losses during the upcoming 2022 FIFA World Cup.

As part of the customizable AI-driven verification solution, the company wants to provide its customers with an improved KYC infrastructure that can handle a high number of users. As a result, bookmakers will be able to better handle traffic spikes at the World Cup, deter potential cheaters and minimize losses.

Fraud in the online gambling sector is on the rise

Big sporting events have always drawn more traffic to betting sites, which presents the perfect opportunity for scammers to hit it big and make as much money as possible. According to Sumsub experts, we should expect a 400% increase in bookmakers during the 2022 World Cup in Qatar, giving scammers endless opportunities.

Fraud has been on the rise in the gambling industry in recent years, with fake account registrations increasing by 85% in 2022 compared to the previous year. To help gambling platforms assess their risk of fraud, Sumsub has launched a free online calculator that can accurately determine how much platforms will have to pay due to fraud during the World Cup.

How does the tool work?

First, Sumsub’s calculator focuses on different types of scams that bookmakers may be subject to online including multi-accounting, arbitrage betting, account takeover, identity theft, money laundering and age violations. To effectively combat this type of fraud, companies need to implement advanced identity and document checks and high-level KYC policies.

However, there is a fine line between being thorough as a merchant with your KYC policy and developing a complex process that could turn off potential players. If users feel overwhelmed during the onboarding phase, they may disappear and take up business elsewhere.

Best practices for building a fraud defense while maintaining a smooth, hassle-free KYC onboarding

First, Sumsub recommends doing minimal verifications during the onboarding phase and signing up for advanced verifications when depositing or withdrawing. Likewise, online betting platforms should introduce simplified controls for low-risk users identifying themselves through a document (if it contains both identity and address information).

Finally, platforms should also consider including a liveness check in their verification flows to avoid account fraud.

about the company

Europe-based Sumsub is an international technology company providing an all-in-one platform to detect and combat fraud while ensuring compliance with KYC/AML requirements worldwide. It has experience in over 220 countries and territories and can help verify users in less than 50 seconds on average. Its AI-driven anti-fraud tools are already used by more than 2,000 clients across various industries including fintech, crypto, transport, retail and gaming.


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