Contents

• What is Age Verification, and Why Is It Important for Businesses Globally?
• Top 5 Industries Where Age Verification is Required and Why?
• Age Verification Regulations worldwide
• Benefits of Complying with Age Verification Solutions
• Choose IDMERIT for Age Verification

What is Age Verification, and Why Is It Important for Businesses Globally?

Age verification is a process that confirms an individual’s age before granting access to age-restricted products, services, or content. This practice has gained immense importance for businesses globally due to the rising concerns surrounding underage access to certain goods and services. Adequate age verification not only safeguards businesses from legal consequences but also contributes to online transactions’ overall security and integrity.

Age verification Companies have evolved into indispensable tools for various sectors, from the financial industry to online retailers and social media platforms. Companies specialising in age verification software play a crucial role in developing and deploying technologies that accurately authenticate user ages. These solutions contribute to regulatory compliance and serve as a shield against potential legal consequences, especially in industries where age restrictions are enforced.

Top 5 Industries Where Age Verification is Required and Why?

In the digital era, age verification is crucial for many industries, ensuring responsible and lawful engagement with their products and services. The top five sectors where age verification is required include:

• Online gaming and gambling
• Alcohol and tobacco sales
• Adult content platforms
• Pharmaceuticals
• Financial services industry

1. Online Gaming and Gambling: Age verification solutions ensure a legal age for online gaming and gambling, preventing minors from engaging in underage activities.
2. Alcohol and Tobacco Sales: Age verification solutions ensure legal compliance by verifying customer age before purchasing alcohol or tobacco products online, thereby preventing underage access.
3. Adult Content Platforms: Age verification solutions ensure explicit content is accessible only to adults, complying with legal requirements and industry standards and preventing minors from viewing inappropriate material.
4. Pharmaceuticals: Age verification is crucial for online pharmaceutical sales, particularly those with age restrictions or prescription requirements, to prevent unauthorised access to certain medications.
5. Financial Services Industry: Age verification is a crucial aspect of identity verification in the financial services industry, enhancing security and preventing fraudsters from using stolen or fake identities.

Age Verification Regulations worldwide

Businesses must prioritise efficient age verification for regulatory adherence and protection of vulnerable populations.

• United States
  The US Children’s Online Privacy Protection Act (COPPA) mandates digital platforms to obtain parental consent before collecting data from children under 13, ensuring their privacy.
• European Union
  The European Union’s Union’s Digital Services Act (DSA) and the UK’s Online Safety Bill impact age verification on internet platforms. The Pan-European Games Information (PEGI) scheme ensures compliance with age-related content restrictions. The DSA may require websites to implement effective age verification procedures.
• United Kingdom
  The UK has enacted the Online Safety Bill, requiring digital platforms to use age verification measures to protect children and teenagers from inappropriate online content. The legislation, approved by the House of Lords, includes mandatory checks for accessing adult websites and imposes penalties for non-compliance.
• Australia
  The Australian Communications and Media Authority (ACMA) introduced age verification guidelines in 2008 to protect minors from inappropriate content, extending to all Australian media and domestic television stations.
• Denmark
  Act No. 426 of May 18, 2016, renders it illegal to sell drugs, narcotics, cigarettes, alcohol, etc., to anyone under the age of 18.
• Germany
  The Protection of Young Persons Act restricts access to games, alcoholic beverages, and tobacco, setting age limits. It encourages platforms to implement age verification mechanisms to create a safer online environment for children. COPPA, DSA, and the Online Safety Bill aim to prioritise teenagers through appropriate age verification systems.

Benefits of Complying with Age Verification Solutions

The benefits of complying with age verification solutions are multifold.

1. It helps businesses build customer trust by demonstrating a commitment to responsible practices.
2. Compliance with age verification regulations protects businesses from legal repercussions and potential fines for providing minors with age-restricted products or services.
3. It contributes to a safer online environment by preventing underage individuals from accessing inappropriate content or engaging in activities meant for adults.

Choose IDMERIT for Age Verification

In conclusion, as businesses continue to operate in the digital realm, ensuring users and legal engagement becomes paramount. Among the various identity verification providers in the market, IDMERIT stands out as a trusted and reliable solution for age verification.

IDMERIT’s age verification services are designed to be user-friendly and seamlessly integrated into existing business processes. By choosing IDMERIT, businesses can benefit from a scalable and customizable age verification solution that aligns with their specific requirements.

Should you be keen on exploring how IDMERIT can support you in establishing their age verification solutions, feel free to contact us for a direct word with our product team. We’re available to engage in a conversation with you!

The post Age-restricted Commerce and the Importance of Picking the Right Age Verification Solutions Partner appeared first on IDMERIT.

Both alcohol and tobacco companies are strictly regulated on a global level. The FDA specifically prohibits the sale of cigarettes to minors. On top of this, the sale of alcohol is restricted in the US to individuals over the age of 21. For online retailers that sell alcohol and tobacco, being able to verify their customers accurately before purchase is extremely important. Due to the popularity of Amazon and Direct To Consumer (DTC) companies, online identity verification and age verification have become standard. 

Top 8 Industries Where Age Verification is Required

1. Online Gaming 
2. Casinos
3. Sports Betting 
4. Tobacco
5. Vaping
6. Alcohol (beer, wine, and spirits)
7. Pharmaceuticals
8. Adult Entertainment

Each ID verification service must include a few aspects within their process to protect users and business, including: 

• Online identity verification
• ID document verification
• Storage of personally identifiable information (depending on industry and locale)
• Reporting of suspicious transactions or suspicious persons (again, industry dependent)

Current Methods of Verifying Patrons’ Ages

Due to the different ways that a responsible adult can order, or be served, alcohol there are also different methods to ensure the patron of an establishment or online supplier is able to legally receive alcohol. 

Checkboxes/Age Verification Pages

Checkbox forms and age verification pages: 

• Provide simple disclaimers that may (or may not) even be understood or read
• Rely on customers to confirm their age without any verification of identity information 
• May be placed on checkout pages that allow for credit card use that lacks the necessary verification step to prove the user is allowed to purchase the age-restricted product

Checkboxes only go so far when the mandate is to protect minors and perform due diligence to prevent the sale of age-restricted items. No matter the delivery method, there are always concerns of fraud, especially when discussing the use of credit cards or pay on delivery services.  Is your id verification service assisting you with streamlining age verification during your onboarding process? 

Flawed Age Verification Solution: Credit Card Verification and Assumptions of Majority Age Website Visitors 

Age verification solutions are lacking in most industries, whether efforts are made in-person online to prevent minors from accessing beer or other alcoholic products. Website owners often include material mandated by third parties or regulators that begins the process but often doesn’t meet the standard necessary. Gaps in age verification do exist. In a recent Wired article, a prominent age verification solution developer commented quite abruptly, “It’s a big myth. They’re not verifying age.” The problem is that even if a website owner places an image that says “Adults Only” or “18+”, there are still going to be minors who attempt to access the website. 

Online Sales Lack Robust Age Verification

Even credit card verification isn’t enough to satisfy new laws being enacted that require customer due diligence to protect minors online. The person who furnishes the credit card number into the text box may not be the same person who was issued the credit card itself.   

In-Store ID Verification Service 

In-store age verification is a step above in the sense that at least employees of liquor stores and distributors have been trained in how to recognize tampering of identity documents and what constitutes a proper identity document. The issue with this method is the same that occurs with COD or “age verification on delivery” of age-restricted products. The identity document may be spoofed or constructed using another person’s identity data in a backroom or an alley in a third-world country. ID verification services should focus on verifying identity documents and ensuring that minors are prohibited from accessing alcohol and age-restricted products. 

IDMERIT’s Age Verification solutions help businesses conduct more comprehensive identity verification to mitigate the risk of fraud.

ID Verification Service: Common Methods To Verify Driver’s License Document Validity 

State Registers of Motor Vehicles and Motor Vehicle Associations issue identification cards and driver’s licenses which (as a prerequisite to driving ability) first verify the applicant’s legal name, date of birth, and address using independent (normally non-fraudulent) identity documents such as passports, utility bills, or social security cards. Most ID verification services can give you access to information on identity document specific and should be experienced in verifying biographical data on these documents. 

Getting It Right Before It Ships: The 5 Steps To Age Verification For Direct Shippers

Direct shipping is extremely challenging when you begin to discuss implementing a proper age verification solution (especially if the age-restricted product is moving across state lines or countries).   

The five steps to ensure proper age verification for direct shipment of age restrictive products include: 

1. Understand local laws and regulations for age-restricted products to be delivered across state lines 
2. Age affirmation
3. Date of birth collection
4. Age verification of the purchaser
5. Carrier ID inspection

Step 1: Defining local laws & requirements for age-restricted products

Each state or local area has its own laws and regulations that govern where, and to whom ( also at what age), alcohol and age-restricted products can be sold. This is the first step in the age-verification process because without accurate information on what is an acceptable form of the identity document or identity data, the entire process is moot and compliance will never occur. If compliance doesn’t occur, liquor sale licenses can (and often are) revoked and huge fines are imposed by state regulatory agencies. Many age verification solutions aren’t even aware of specific legislation or regulations in their local jurisdiction, let alone across state lines or country borders.

Sources of information governing age-restricted commerce include:  

• Federal Trade Commission
• Congressional Federal Record
• Attorney General’s Website
• Alcohol Policy Information System 

Step 2: Age affirmation 

“Age gates” are the alcohol seller’s first attempt at preventing minors from accessing age-restricted commerce and products such as beer, wine, and other paraphernalia that are not permitted by law. These are technical additions to websites that aim to verify age and limit access to adults over the age of majority (in that specific state/jurisdiction).

Step 3: Date of birth collection 

The third step basic age verification solutions attempt to complete is the Date of Birth collection. Several state agencies require the reporting of data of birth information by those who were granted liquor licenses by the state. Failure to do so can lead to criminal complaints and revoking of the license itself (and steep fines),

Orlando, California, for example, states the following: 

“The legal drinking age in a liquor sales licensed establishment in the province of Ontario is 19 years of age.

• Serving people who are under 19 years of age is an offense under the Liquor Licence Act.
• Alcohol cannot be passed from a person of legal drinking age to a person who is under the legal drinking age.”

Step 4: Age Verification of the Purchaser

Who’s Responsible?

Many states place the responsibility of age verification on the age-restricted product seller. This places an uneven burden on the licensee (and in some cases these alcohol providers do not have the capacity or funds to fully comply – if they attempt to at all). 

There are very different answers depending on which state you are purchasing from or which jurisdiction you’ll receive your age-restricted product in as well as the type of product itself. When we discuss alcohol, it is forbidden to provide alcohol to minors (both online and at establishments that provide alcohol to patrons, such as bars or breweries). 

Step 5: Carrier ID Inspection 

Delivery drivers and carriers are required to request and inspect the identity document of those who receive alcohol. Many states have Real IDs and also include specific Tip Sheets

Signs of identity document tampering may include:

• falsification by overprint
• adding a laser-engraved personalization
• simulating optical variable devices (OVD​)
• grinding to access the core of a document 
• High quality “intaglio printing​” look-alike in fake passports

There are a few requirements that DTC alcohol sellers must comply with: 

• The carrier cannot leave the shipment (age-restricted alcohol) unattended and cannot leave the alcohol with an underage recipient
• Similar to in-store purchases, a government-issued (non-expired) identity document must be present to release the age-restricted product
• A signature must be provided confirming the receipt of the age-restricted product who is old enough to receive the package. 

Carriers and delivery personnel should inspect the following details of the identity documents:  

• Does the photo match the facial features of the person receiving the age-restricted product (alcohol)
• Check the license: is it expired? Does the biographical information match the shipping label and what was offered by the receiver? 

For California, the state website states,“ acceptable forms of photo identification include:

• Ontario Driver’s Licence with a photo of the person to whom the license is issued
• A Canadian Passport
• Canadian Citizenship Card with a photo of the person to whom the card is issued
• Canadian Armed Forces Identification Card
• A photo card issued by the Liquor Control Board of Ontario (LCBO), entitled Bring Your ID (BYID)
• A Secure Indian Status Card issued by the Government of Canada
• A Permanent Resident Card issued by the Government of Canada
• A photo card issued under the Photo Card Act, 2008”

Are you investing in the correct ID verification service? Contact IDMERIT to learn how we can help you become compliant with age verification regulations. 

Choosing The Right Age Verification Service: Identity Verification Service Gaps To Be Avoid

Many of the issues with online, and in-person, age verification exist because of the lack of attention to the laws and regulations in specific areas of the country. Many providers don’t even know the updated legislation (or fail to follow it). When online sales are done by minors or those who steal credit card or identity information, there is often no recourse for businesses. 

One method to address these challenges includes incorporating an age verification solution that involves facial recognition in addition to the technical age gate on a website. This would also include age verification solutions such as IDMERIT’s identity verification service that compare identity document data to independent third-party databases via a REST API (application program interface). 

Questions to ask when choosing an ID verification solution: 

• Does the age variation solution have experience in your industry?
• Is id verification fundamental to the process of the age verification solution or is it just an afterthought? 
• Does the id verification solution have experience in alcohol shipment legislation across state (and national) borders? 
• Do you have access to four or five past customers or testimonials you can verify? 

Contact IDMERIT to learn about our age verification service and how you can protect your valuable brand.  

Regulations Governing Sales of Alcohol and Age-Restricted Products 

The United States has both federal and state-level protections for minors looking to purchase alcohol and age-restricted products online and in-person. 

Children’s Online Privacy Protection Rule (“COPPA”) 

According to the Federal Trade Commission, “COPPA imposes certain requirements on operators of websites or online services directed to children under 13 years of age, and on operators of other websites or online services that have actual knowledge that they are collecting personal information online from a child under 13 years of age.” 

According to SearchCompliance, “The Act specifies:

• Californialicenseust requires parental consent for the collection or use of any personal information of young Web site users.
• What must be included in a privacy policy, including the requirement that the policy itself be posted anywhere data is collected.
• When and how to seek verifiable consent from a parent or guardian.
• What responsibilities the operator of a Website legally holds with regards to children’s privacy and safety online, including restrictions on the types and methods of marketing targeting those under 13.”

Connecticut: 

In Connecticut (as with all states) there are specific laws that patrons govern the sale of alcohol to minors which usually set the age of majority including at what age someone is permitted to purchase alcohol. “For purposes of state liquor law, a “minor” is someone who is less than 21 years old. The Department of Consumer Protection (DCP) administers the Liquor Control Act. It regulates the sale of liquor to prevent sales to minors and other “unsuitable” people.” 

Federal Protection: National Minimum Drinking Age Act

Congress enacted the National Minimum Drinking Age Act which sets the minimum drinking age (which supersedes state legislation). The federal protections in place like this act aim to prevent some of the rising crime, drunk driving accidents, and issues that come with minors having access to alcohol and age-restricted products. 

These types of age gates and privacy protections go a long way to meeting compliance requirements but do not go far enough – and this is where age verification solutions step in to fill the gap.

Fines Enforced For Providing Alcohol To Minors

When a company selling alcohol online or in-stores fails to comply with local or federal laws, serious fines are handed down. Age verification solutions can be the answer to compliance gaps and budget constraints. Protecting minors should be the foundation of any liquor provider and its shipping carriers. If you fail to enlist an experienced id verification service, you are leaving yourself open to major fines and jeopardizing your business license. Recent fines include:

• For their first offense, the Kentmorr Restaurant in Stevensville was fined $500, half of which had to be paid immediately with the other held in abeyance.
• Horseshoe Casino fined $100,000 for repeatedly admitting underage patron (NWITimes)

Regulatory Outlook for Age Restricted Commerce 

Much as in the world of cryptocurrencies, manifesting a strong approach towards security and proper conduct enormously improves the end-user experience for companies. Furthermore, a well-managed and policed approach to security – of which proper age verification policy form an inexpensive and robust part, provides part of a protocol that allows a simple approach to change management. Identity verification platforms like IDMERIT provide a robust age verification module is perhaps the easiest security module to implement, as an additional bonus. This also removes the need to include them in regular security reviews, as they should be considered almost an automatic feature of any gaming site’s security protocols.

Fortunately, a KYC provider like IDMERIT offers robust age verification services for online businesses. Digital and automated identity verification are now not only possible but frictionless and fast. IDMscan allows businesses to validate their users by verifying their government-issued identity documents that these patrons. From there, it uses a facial recognition scan to confirm the person using the identity verification solution matches the person on the identity document. IDMscan can verify users in real-time, making it a simple and effective part of an online age-restricted commerce platform.

IDMKyX: Verifying Customers Faster

IDMscan is a key solution that is a part of the IDMERIT identity verification service ecosystem. It is an application that scans customer identity documents, such as passports, to validate and authenticate their identity.

• We can validate Passports, Drivers Licenses, and National ID’s from 175+ countries.
• Biometric facial recognition & face liveliness technologies are used to produce a live match.
• Multi-Language support 
• Easily integrate into your system with a simple API.
• Validate someone in less than 30 seconds

Contact one of our identity specialists to Schedule a Demo of IDMscan today.

Follow our LinkedIn and Facebook pages for anti-money laundering news and significant regulatory changes.

About IDMERIT

Headquartered in San Diego, California, IDMERIT provides an ecosystem of identity verification solutions designed to help its customers prevent fraud, meet regulatory compliance and deliver frictionless user experiences. The company is committed to the ongoing development and delivery of offerings that are more cost-effective and comprehensive than other solution providers. IDMERIT was funded by experts who have been sourcing data on personal and business identities across the globe for over a decade. This access to official and trusted data throughout the world has become increasingly important as companies find themselves completing transactions across borders as a standard course of business.

The post Age Verification in the Alcohol Industry: How Best To Prevent Serving & Selling Alcohol to Minors appeared first on IDMERIT.

Each age verification solution must include a few aspects within their process to protect users and businesses including: 

• Online identity verification
• ID document verification
• Storage of personally identifiable information (depending on industry and locale)
• Reporting of suspicious transactions or suspicious persons (again, industry dependent)

Online identity verification is important in nearly all industries to protect minors and businesses alike. 

Top 8 Industries Where Age Verification is Required

1. Online Gaming 
2. Casinos
3. Sports Betting 
4. Tobacco
5. Vaping
6. Alcohol (beer, wine, and spirits)
7. Pharmaceuticals
8. Adult Entertainment

Now that you know which industries need age verification the most, let’s talk about some of the details and the who, what, and why you’ll need to know to become compliant with laws and regulations. If you want to choose a powerful age verification solution, they need to be versed in legal and regulatory compliance. Online identity verification should include robust compliance processes in order for your business to function within the guidelines of age verification regulations. 

7 Compliance Steps You Need To Know

Properly verifying the age of your customers is now a prerequisite in managing risk and maintaining compliance with regulatory guidelines. Whether you are a financial institution, an online gaming company or sell age-restricted merchandise, you must verify the age of your potential customers.  

Step 1: Understand Who, What, and Why Behind Age Verification 

Who Is Responsible? 

Any sports, casino, online gambling establishment, or age-restricted product vendor may now be regulated by laws and local ordinances relating to age-restricted commerce. Each age verification solution has a specific set of industries and clients to who they cater to. Make sure your online identity verification provider is well versed in your industry. 

We’re going to delve into the following industries (but there are many, many more who are required to comply with regulations):

• Alcohol and tobacco 
• Online Gaming
• Online Gambling 
• Pharmaceuticals
• Dating Services 

Alcohol and Tobacco

Both alcohol and tobacco are strictly regulated on a global level. The FDA specifically prohibits the sale of cigarettes to minors. On top of this, the sale of alcohol is restricted in the US to individuals over the age of 21. For online retailers that sell alcohol and tobacco, being able to verify their customers accurately before purchase is extremely important. Due to the popularity of Amazon and Direct To Consumer (DTC) companies, online identity verification and age verification have become standard. 

Online Gaming

Children, adolescents and teens are all attracted to online gaming. If played excessively, they can develop problematic habits. Plus, in many online games, children have access to players of any age from all over the world. Children can easily fall for scams, be taken advantage of, experience offensive language or even bullying from uninhibited gaming interactions. For these reasons, many gaming companies should consider adding an age barrier to their game to ensure that the players on their platforms meet the required age to play.

Online Gambling

In the US, online gambling is highly regulated. The same is true in other countries, such as the UK. Studies have shown that as many as 50,000 children under the age of 17 have used online gambling and developed a gambling problem. By verifying a user’s age before entry into an online gambling system, subsequently, gambling companies can help prevent children from being allowed to play. Platforms must do everything they to ensure that children remain out of their systems. Online identity verification is a major part of the onboarding process for new users looking to gamble online 

Pharmaceuticals

Online pharmacies have popped up as a convenient and easy way for patients to receive their medication. Nevertheless, underage users with drug issues pose a major risk for online pharmacies. Pharmaceuticals are highly regulated and regulatory bodies do exist to manage the records from online pharmacies. Nevertheless, age verification is not standard among online pharmacies. Online identity verification may become the wave of the future as COVID has forced customers to work from home. It is critical for online pharmacies to implement age verification processes because they create safer business practices for online pharmacies and help build trust with regulatory bodies.

Dating Services

Online dating websites and apps are online services with very low barriers to entry. Both the minor and the adult users are at risk with underage use of dating apps. Underage dating is illegal in most places and can cause a lot of damage to the minor and the adult involved. Adults involved in such cases can face legal action that lasts their whole lives and minors can face trauma from potential underage assault and other disturbing problems. Dating apps must do their part to verify their user base with robust Identity Verification Services rather than just relying on social profile information.

What Is Required: Are You An Age Verification Solution or Carelessly Non-Compliant? 

Ensuring smooth “in-game” loot purchases, seamless betting experiences for players in casinos or sports betting clubs, and protecting monitors from accessing age-restrictive content is now one of the most important objectives of regulatory organizations around the world.   

Why Is Being Compliant For Age Verification Solutions Important?

Online identity verification is more important than ever before. For vendors that sell age-restricted products and services, it is of key importance to know the age of their customers. Today, customer-not-present transactions are commonplace. Millions of transactions happen every second whether they are age-restricted products or transactions involving rare loot in a game. Identity verification is now obligatory for age-restricted commerce vendors. Some examples of age-restricted industries include tobacco, vaping, online gaming, wine and spirits. These industries must actively work to keep out minors or risk huge fines may be at stake.

Step 2: Age Verification Protects Minors Now More Than Ever

When accessibility to age-restricted goods and services is in question, age verification is necessary to prevent minors from purchasing restricted products. But age verification works vice versa as well. Companies need to prevent adults from taking advantage of products only for those under 18’s or keep adults away from sites that are designed for children.

IDMERIT’s Age Verification solutions help businesses conduct more comprehensive identity verification to mitigate the risk of fraud.

Germany Enacting Stricter Rules To Protecting Minors

Germany is taking a strong stance to protect minors and to enforce age verification on online game manufacturers and those who handle the loot transactions inside these virtual worlds. “Another European country could soon place legal restrictions on video game loot boxes. As Der Spiegel and Eurogamer report, Germany’s Bundestag has passed a reformed Youth Protection Act that would limit loot boxes to games with an 18-plus age rating. The “gambling-like mechanisms” pose too many risks for kids, according to the law.”(Engadget)

Contact IDMERIT to learn about our age verification service and how you can protect your valuable brand.  

Step 3: Know Your Identification Documents

Knowing your identity documents (ID cards, national IDs, birth certificates, Social Security cards, government documents, and licensure documents) and how to identify whether they are genuine or are synthetic/tampered/falsified is one of the most critical steps that any age verification service must perform. A reputable age verification service will have a set of standards revolving around how they handle, and independently verify, specific documents relating to age. 

ID protection and fraud prevention are continually innovating as regulators and law enforcement authorities continuously face threats including: 

• falsification by overprint
• adding a laser-engraved personalization
• simulating optical variable devices (OVD​)
• grinding to access the core of a document 
• high quality “intaglio printing​” look-alike in fake passports​

Many data types, fields, and attributes are included within biographical data or personally identifiable information (PII) but the most critical to age verification include: 

• Date of birth 
• Country of origin 
• First, middle & last name
• Biometric data (fingerprint, facial geometry, iris or retina scan, or palm print)

If you have the information above, you can cross-reference it to validate the identity document you’ve received and verify whether the information is accurate to sell the age-restricted merchandise or product. 

Why Synthetic Fraud is a Problem

Synthetic fraud is the fastest-growing form of identity theft according to the US Federal Trade Commission. They state that it is one of the hardest forms of identity theft for businesses to detect. An Equifax study found that losses associated with this fraud amounted to around $25 million a year for communications and energy companies. Other business sectors are facing around $800 million in costs associated with synthetic fraud.

Step 4: Age Verification: Online Identity Verification Process

A Robust online age verification solution must include strict Know Your Customer processes and identity document verification. Heavily regulated industries such as pharmaceuticals, tobacco, e-cigarettes, alcohol and video games must implement stringent age verification processes to protect themselves from being subpoenaed by the court. However, limited guidance on best compliance practices has added to the growing challenges for retailers and online gaming businesses. Your local age verification service may not have the most developed online identity verification process so it is important to ask plenty of detailed questions. 

The online identity verification process includes:

1. Receive the identity document from the customer 
2. Manually, or using fraud/tamper-detection software, verify whether the identification document is valid and from an independent source.
3. Retrieve biometric data (such as through facial recognition, palm print, or fingerprint scans)
4. Compare PII or biometric data (including most importantly Date of Birth) to one of IDMERIT’s 440+ global data sources and/or databases
5. Provide age verification and/or match results in a secure, encrypted format (if simultaneously running a search with IDMaml or IDMkyc)

If your organization doesn’t follow a strict process or use a certified, and experienced, age verification service you may end up facing severe fines, penalties, and your business could be closed. 

 Step 5: Global Age Verification Regulations

If you are looking for an age verification solution, during your initial discussions check to ake sure that the organization or firm is familiar with the varying age verification regulations below. These are major compliance hurdles that can be met by your organization if it remains focused and chooses the right firm to ensure its age verification compliance. Age verification services usually have access to both local, municipal, and government data sources but may lack the crucial access to rare hard-to-acquire global sources. IDMERIT can get you access to even the most challenging age verification date sources. 

Know Your Customer (KYC)

Every company must comply with KYC and AML to make sure ID and age verification is checked. Companies have a moral responsibility to uphold the laws imposed by regulatory authorities. Frictionless and reliable KYC procedures will help your company be compliant and protect your company’s reputation. Consequences of non-compliance are newsworthy and in everyday headlines in the media. The fines are very large, and the penalties are even stricter. The cost value of implementing ID verification from the start is more important than ever. Use IDMerit’s to protect your customers and your business.

IDMerit’s verification tools can offer instant age confirmation, which can ensure proper age usage of your services and products and facilitate legal transactions efficiently.

General Data Protection Regulation (GDPR)

General Data Protection Regulation (GDPR) establishes the minimum age of consent in many countries. The GDPR is used within the European Union and was enacted by the European Parliament. The EU’s GDPR Article 8 specifies the age of consent may fall between the ages of 13 and 16. The GDPR also provides guidelines on dealing with privacy including the collection, transmission, and use of personally identifiable information (PII) data. 

An additional framework dealing with age verification within the EU is the P an-European Games Information (PEGI) is the age classification system for the gaming industry in Europe

Step 6: Understand The Risks of Lacking Age Verification Checks 

If your organization lacks an age verification solution, you could be at severe risk for reputation damage if something goes wrong or a user you’ve onboarded commits some sort of crime, abuse, or falls foul of your community standards. This is common in online multiplayer games and is known as a “rage-quit” and may also occur in online forums. If you are running a casino or selling age-restricted products or content, users also need to be a specific age to purchase these products and if you knowingly sell to anyone underage in your jurisdiction, you could open your establishment, online casino, or gaming company up to huge fines. 

Step 7:  Avoid Costly Regulatory Fines 

We just have to repeat that it can be extremely detrimental to organizations who disregard age-verification laws and regulations: it can destroy your business and cost you millions of dollars in fines. 

A few of the most recent fines levied against casino, sports betting clubs & online gaming companies include: 

•  Horseshoe Casino fined $100,000 for repeatedly admitting underage patron (NWITimes)
• Cantor Gaming fined $22.5 million for poor compliance and adherence to AML regulations. 
• The Dutch Gaming Authority, Kansspelautoriteit (KSA), has imposed a fine of €500,000 (£425,967.50) on Maltese-based company N1 Interactive Limited. (Gambling Insider) 

Stay tuned to our Identity Insights blog for more content covering age verification for your online gaming website, sports betting club, or general news about age-restricted products. 

YouTube Establishing Age Verification For Users

YouTube has begun to establish age verification procedures for its users. Despite its strict video and media content guidelines, there are many examples of content filtration running short of adequate. As with many online gaming websites, sports betting clubs, and casino websites, YouTube has had to comply with age verification solution requirements just as your organization may.  

As your YouTube account is handled via the Google site, you may verify your age within Google’s platform with the following steps: 

1. Sign in to your Google Account privacy page on a computer.
2. Click Personal info.
3. Click Add Birthday.
4. Verify your birthday and update if necessary.
5. Click Save.

Whether you are looking for an age verification API or a full-featured online age verification solution, you need to follow the compliance steps above and understand the lay of the regulatory landscape going forward. Don’t be caught without a working-age verification solution (you could face serious penalties and lose your business license). 

Regulatory Outlook for Age Restricted Commerce 

Much as in the world of cryptocurrencies, manifesting a strong approach towards security and proper conduct enormously improves the end-user experience for companies. Furthermore, a well-managed and policed approach to security – of which proper age verification policy form an inexpensive and robust part, provides part of a protocol that allows a simple approach to change management. Identity verification platforms like IDMERIT provide a robust age verification module is perhaps the easiest security module to implement, is an additional bonus. This also removes the need to include them in regular security reviews, as they should be considered almost an automatic feature of any gaming site’s security protocols.

Fortunately, a KYC provider like IDMERIT offers robust age verification services for online businesses. Digital and automated identity verification is possible online. IDMscan allows businesses to validate their users by verifying their government-issued identity documents. From there, it uses a facial recognition scan to confirm the person using the identity verification solution matches the person on the identity document. IDMscan can verify users in real-time, making it a simple and effective part of an online age-restricted commerce platform.

IDMscan: Onboarding Honest Customers Faster

IDMscan is a key solution that is a part of the IDMERIT identity verification service ecosystem. It is an application that scans customer identity documents, such as passports, to validate and authenticate their identity.

• We can validate Passports, Drivers Licenses and National ids from 175+ countries.
• Biometric facial recognition & face liveliness technologies are used to produce a live match.
• Multi-Language support 
• Easily integrate into your system with a simple API.
• Validate someone in less than 30 seconds

Contact one of our identity specialists to Schedule a Demo of IDMscan today.

Follow our LinkedIn and Facebook pages for anti-money laundering news and significant regulatory changes.

About IDMERIT

Headquartered in San Diego, California, IDMERIT provides an ecosystem of identity verification solutions designed to help its customers prevent fraud, meet regulatory compliance and deliver frictionless user experiences. The company is committed to the ongoing development and delivery of offerings that are more cost-effective and comprehensive than other solution providers. IDMERIT was funded by experts who have been sourcing data on personal and business identities across the globe for over a decade. This access to official and trusted data throughout the world has become increasingly important as companies find themselves completing transactions across borders as a standard course of business. www.idmerit.com

The post Online Age Verification: What It Is & How It Protects Minors appeared first on IDMERIT.

Age verification solutions are now tasked with helping gambling clients (and gambling website operators) become familiar with identity verification requirements brought about due to mounting anti-money laundering, fraud, and terrorist financing legislation.

Operators who have operations within Britain are being forced to do so within a certain period of time or they may face steep fines or even lose their business licenses. Variation in legislation across jurisdictions or countries may lead to misunderstandings between authorities and site operators. For instance, a gambling website operator that unknowingly onboards underage players could face heavy fines even if they aren’t aware of the rules governing their jurisdiction. In this blog, we will discuss what makes age verification solutions so important for gambling businesses and why greed & fraud show up when identity verification lags behind. 

Each age verification solution must include a few aspects within their process to protect users and businesses, including: 

• Online identity and age verification
• ID document verification
• Storage of personally identifiable information
• Reporting of suspicious transactions or suspicious persons to appropriate authorities

Online identity verification is important in nearly all industries to protect minors and businesses alike. 

Top 8 Industries Where Age Verification Solutions Are Required

1. Online Gaming 
2. Casinos
3. Sports Betting 
4. Tobacco
5. Vaping
6. Alcohol (beer, wine, and spirits)
7. Pharmaceuticals
8. Adult Entertainment

Age verification solutions are required not only because of legal and regulatory requirements but player’s mental capacities also is an important topic to discuss. If a player isn’t capable of making a rational decision or understanding the consequences of their decisions at the time, it is usually up to the operator or the location offering the age-restricted service to serve as the buffer or decision-maker. Psychological reasons gamblers should be of age include that inebriated patrons aren’t able to make sound decisions due to diminished capacities or their brains haven’t fully developed yet. This is also the case with underage players or those who have guardians. These populations can fail to make proper decisions and engage in money transfers or betting unwillingly or due to immense pressure.  

Many gambling sites do not:

• Require users to engage in online identity verification
• Track or verify the age of users or their ability to make sound decisions
• Encrypt or protect players personally identifiable information (PII)
• Generally lag behind in following identity verification regulations

Know Your Players: Age Verification Solutions For Gaming & Gambling Industries

Age Verification Solutions Within Online Gaming 

Age verification solutions should have experience setting up processes that comply with regulations governing age-restricted commerce in various jurisdictions and the minimum ages are which can access age-restricted content. Children, adolescents, and teens are all attracted to online gaming due to its excitement and the community that it brings to their life. 

If online games are played excessively, players can develop addictive tendencies and habits. Plus, in many online games, children have access to players of any age from all over the world, which may expose them to dangerous ideologies or persons. Children can easily fall for scams, be taken advantage of, experience offensive language, or even bullying from uninhibited gaming interactions. For these reasons, many gaming companies should consider adding an age barrier to their game to ensure that the players on their platforms meet the required age to play.

Why Age Verification Solutions Are Necessary For Online Gambling Websites

In the US, online gambling is highly regulated but there are still major issues with gaming websites, apps, and operators who fail to conduct even the slightest level of age verification. In the U.S., age verification solutions are mandated by law. The same is true in other countries, such as the UK and the Caribbean.

The BBC has even highlighted the multiple studies showing that as many as 50,000 children under the age of seventeen have used online gambling and developed a gambling problem. By verifying a user’s age before they are allowed entry into an online gambling system, gambling site operators can lower the potential for gambling addictions and online bullying at the outset.

Platforms must do everything they can to ensure that children remain out of their systems to curb many of the problems plaguing society today. Online identity verification is a major part of the onboarding process for new users looking to gamble online. Protect your age verification solution with one of the world’s leading age verification solutions: IDMERIT.

Know Your Customer (KYC) For Online Gaming & Gambling Websites 

KYC, or Know Your Customer, is the process of verifying a new, or existing, player’s identity to ensure they are providing accurate personally identifiable information (PII) as well as in order to understand their past financial behavior with previous institutions or money service providers. This process ensures that the financial institution’s services aren’t misused for identity theft, money laundering, and the funding of criminal organizations. KYC ensures that gambling websites are both compliant and that customers with a suspicious financial background aren’t approved for an account at the bank or financial institution. Age verification solutions often take the time to help you assemble your organization’s know your customer (KYC) process in such a way that it complies with local regulations and frameworks.

Identity documentation usually required for gaming or gambling websites may include any or all of the following:

(POI) Proof of Identity

• A UID/passport, driver’s license, or a voter’s ID card. 
• A PAN (Permanent Account Number) card with a picture matching the customer. 
• A current ID card issued by the State. 
• Any valid Debit or Credit card issued by a bank. 

(POA) Proof of Address

• A copy of utility bills such as electric bills with a verifiable address  
• Visa/Driver’s License with a digital picture. 
• A copy of a registered sale agreement or lease for residence. 

• Any identification document in the name of one’s spouse. 

How Greed Affects Decision Making in Gambling 

Online identity verification helps weed out the players who may have risk profiles that are beyond the tolerance of gambling website operators or regulators. This could include new players who may have engaged in unscrupulous activities in the past or those who failed to pay old debts. Certainly, this limit should include minors. Past aggressive or impulsive behavior could also hint to decision-making problems. While gambling website operators may want new players intent on “going all in,” greed can be extremely destructive and backfire destroying the business itself. Is your age verification solution weeding out unscrupulous players and those who aren’t ready to make mature betting decisions?

Many players may want to spend an exorbitant amount of money the minute they open their account and/or find creative ways to achieve bonuses (ethically or not) which is a recipe for financial disaster. Age verification solutions can help you build out risk profiles for your new players to make sure they are the right fit for your brand. 

Risks to new unverified players may include: 

• Rapid loss of funds due to poor decision-making 
• Fraudulent bonus structures from unscrupulous gambling sites may lead users to spend funds unnecessarily
• Account takeovers and theft of funds

Contact IDMERIT to learn about our age verification solution and how you can protect your casino or sports betting brand.

Dangers of Unverified Players & Improper Online Identity Verification To Gambling Websites  

New players who haven’t submitted valid identity documents or haven’t passed through robust online identity verification can cause severe damage to your online casino, sports betting, or gaming website. Age verification solutions can help lower these threats and protect your gambling brand. 

Unknown players who haven’t passed strict customer due diligence processes and/or verified their age through an age verification service may:

• Cause monetary loss to the gambling company 
• Use synthetic identification documents to unfairly gain access to funds 
• Engage in unscrupulous and reputation-damaging behavior 

Gambling Online Identity Verification Regulations 

In the United Kingdom and across the EU, there are many regulatory frameworks that dictate who can, and cannot, access age-restrictive content and engage in gambling or online commerce. There are three landmark laws and regulations in force within the EU. Age verification solutions in the United States are required to follow most of the same regulations as those in the EU if they allow users from the EU to open accounts or gamble from their homes. 

A gambling website must first build out its customer due diligence process to even begin to operate legally in most of the UK. Having the right age verification service can keep minors from entering your website or gambling rooms and save you millions in fines. 

Privacy is extremely important to regulators and lawmakers across the UK. There are several privacy-related laws and regulations your gambling company should be familiar with. 

General Data Protection Regulation (GDPR)

General Data Protection Regulation (GDPR) establishes the minimum age of consent in many countries. The GDPR is used within the European Union and was enacted by the European Parliament. The EU’s GDPR Article 8 specifies the age of consent may fall between the ages of 13 and 16. The GDPR also provides guidelines on dealing with privacy including the collection, transmission, and use of personally identifiable information (PII) data. An additional framework dealing with age verification within the EU is the Pan-European Games Information (PEGI) is the age classification system for the gaming industry in Europe. The GDPR can also be a nightmare for operators who choose age verification services that aren’t experienced with procedures and encrypting personal information. Age verification solutions are now required to follow the GDPR by storing, encrypting, and protecting all customer data. 

Online Identity Verification: UK Gambling Commission Announces Changes To Social Responsibility Code

Online age verification starts with the following codes and frameworks set by bodies like the UK Gambling Commission. The UK Gambling Commission routinely posts changes in laws, regulations, and codes to help players and gambling providers. Here are a few of the changes that affect age verification solutions: 

• Changes to Social Responsibility Code Provision 3.2.11 for age verification for remote betting and gaming
• Changes to Social Responsibility Code Provision 3.2.13 for age verification for some remote lotteries

Age verification solutions in Britain are now required to follow the Licence Conditions And Codes of Practice which we will describe below. 

License Conditions and Codes of Practice (LCCP)

According to the UK’s Gambling Commission, “Our LCCP is the rulebook that sets out the measures that you must take and other aspects that we think are good practice. Use the LCCP as a starting point to run your business and build on these provisions, to ensure that you put your customers at the heart of your business.” There are rules in the UK relating to online identity verification for casinos and sports betting establishments including when, and if, you are allowed to market your service to specific age groups. There are even rules about specific verbiage and website copy a sports betting website operator may use. If you fail to follow these best practices and regulations, your establishment or gambling website can be shut down and your operating license may be revoked. 

Age Verification Service Checklist: What Should You Look For? 

Before you use an age verification solution, make sure you look for the following in a provider: 

• Experience in age verification across multiple industries 
• A thorough understanding of the laws relating to age-restricted products and, more importantly, identity verification
• Take some time to look through the promotional materials and evaluate whether past clients align with your industry and goals

Age Verification Solution & Industry Outlook For Gaming & Gambling Websites

According to Yahoo, the worldwide gambling market growth, “is estimated to [be] supported by various growth drivers such as increasing spending capability, legalization of gambling in countries such as the US, rising penetration of smart devices, hike in internet penetration, and an overall increase in global population, especially within those lying in between the ages of 20-64 years.” This means that regulators may take a closer look at increasing the burdens of operating these websites due to safety concerns and the growing trend of minors accessing forbidden gambling websites. Choosing the right age verification service is now more important than ever due to the growing legal landscape and major fines enforced by regulators. 

Fortunately, IDMERIT offers robust age verification services for online businesses. Age verification can be completed in person or using remotely. One of IDMERIT’s flagship products, IDMscan, allows businesses to validate their users by verifying their government-issued identity documents. From there, the tool uses a facial recognition scan to confirm the person using the identity verification system matches the person on the identity document. IDMscan can verify users in real-time, making it a simple and effective part of an online age-restricted commerce platform.

Stay tuned to our Identity Insights blog for more content covering age verification for your online gaming website, sports betting club, or general news about age-restricted products. 

IDMkyb: Onboarding Honest Customers Faster

IDMscan and IDMkyc are 2 key solutions that are part of the IDMERIT IDMkyX platform that support age verification. 

• We can validate Passports, Drivers Licenses and National ID’s from 220 countries and territories.
• Biometric facial recognition & face liveliness technologies are used to produce a live match.
• Multi-Language support 
• Easily integrate into your system with a simple API.
• Validate someone in less than 30 seconds
• Access over 440 official data sources in 175+ countries

Contact one of our identity specialists to Schedule a Demo of IDMscan today.

Follow our LinkedIn and Facebook pages for anti-money laundering news and significant regulatory changes.

About IDMERIT

Headquartered in San Diego, California, IDMERIT provides an ecosystem of identity verification solutions designed to help its customers prevent fraud, meet regulatory compliance and deliver frictionless user experiences. The company is committed to the ongoing development and delivery of offerings that are more cost-effective and comprehensive than other solution providers. IDMERIT was funded by experts who have been sourcing data on personal and business identities across the globe for over a decade. This access to official and trusted data throughout the world has become increasingly important as companies find themselves completing transactions across borders as a standard course of business. www.idmerit.com

The post Age Verification Solutions Help You Know Your Players: Why Greed & Fraud Show Up When Identity Verification Lags Behind appeared first on IDMERIT.

Regulation is increasing for companies to verify their customers before selling them age-restricted goods and services. Merely having a user provide a date of birth from their social profiles as a form of verification is not enough. Many underage individuals, especially resourceful teenagers, have been able to gain access to online gambling platforms or alcohol through these traditional methods of verification. It is critical to make the barrier to entry much higher for age-restricted goods and services because it can lead to legal ramifications, large fines and a ruined reputation.

How ID Verification Solutions Help Age-Restricted Commerce

In many countries around the world, legislation has passed where age verification is required for industries like online gaming, gambling, pharmaceuticals, tobacco & alcohol and online dating apps. This is also true in the US, where many states have implemented laws regulating age-restricted industries. Demand has arisen for ways to accurately verify user’s ages to comply with these laws. Digital identity verification solutions satisfy these needs.

A company can verify their user’s ages by performing digital identity verification. Digital identity verification verifies a user’s age by scanning the date of birth from their government-issued IDs—passport, driver’s license, government-issued ID, etc. IDMscan, an id verification solution offered by IDMERIT, goes a step further allowing companies to confirm the person using the app is the same person on the identity document using facial recognition technology.

Many companies realize that they need digital Identity Verification Services. They are worried about underage usage of their platforms and the sale of restricted goods to minors. Below we will explore specific industries that can benefit from ID verification solutions.

Alcohol and Tobacco

Both alcohol and tobacco are strictly regulated on a global level. The FDA specifically prohibits the sale of cigarettes to minors. On top of this, the sale of alcohol is restricted in the US to individuals over the age of 21. For online retailers that sell alcohol and tobacco, being able to verify their customers accurately before purchase is extremely important.

Online Gaming

Children, adolescents and teens are all attracted to online gaming. If played excessively, they can develop problematic habits. Plus, in many online games, children have access to players of any age from all over the world. Children can easily fall for scams, be taken advantage of, experience offensive language or even bullying from uninhibited gaming interactions. For these reasons, many gaming companies should consider adding an age barrier to their game to ensure that the players on their platforms meet the required age to play.

Online Gambling

In the US, online gambling is highly regulated. The same is true in other countries, such as the UK. Studies have shown that as many as 50,000 children under the age of 17 have used online gambling and developed a gambling problem. By verifying user’s age before entry into an online gambling system, subsequently gambling companies can help prevent children from being allowed to play. Platforms must do everything they to ensure that children remain out of their systems.

Pharmaceuticals

Online pharmacies have popped up as a convenient and easy way for patients to receive their medication. Nevertheless, underage users with drug issues pose a major risk for online pharmacies. Pharmaceuticals are highly regulated and regulatory bodies do exist to manage the records from online pharmacies. Nevertheless, age verification is not standard among online pharmacies. It is critical for online pharmacies to implement age verification processes because they create safer business practices for online pharmacies and help build trust with regulatory bodies.

Dating Services

Online dating websites and apps are online services with very low barriers to entry. Both the minor and the adult users are at risk with underage use of dating apps. Underage dating is illegal in most places and can cause a lot of damage to the minor and the adult involved. Adults involved in such cases can face legal action that lasts their whole lives and minors can face a trauma from potential underage assault and other disturbing problems. Dating apps must do their part to verify their user base with robust Identity Verification Services rather than just relying on social profile information.

Conclusion

A variety of industries can benefit from online identity verification to access age-restricted goods and services. Online retailers should hold some of the responsibility in regulating who can access their goods and services rather than relying on consumers to police themselves. Robust identity verification provides a way for companies to accurately determine the age of their customers, making it a bit easier for them to verify age online.

Fortunately, a KYC provider like IDMERIT offers robust age verification services for online businesses. Digital and automated identity verification is possible online. IDMscan allows businesses to validate their users by verifying their government-issued identity document. From there, it uses a facial recognition scan to confirm the person using the identity verification system matches the person on the identity document. IDMscan can verify users in real time, making it a simple and effective part of an online age-restricted commerce platform.

The post 7 Age-Restricted Industries that can Benefit from ID Verification Solutions appeared first on IDMERIT.

For online gambling companies, this shift in policy should be no surprise. At IDMERIT, we believe that the online gambling industry will become more regulated in the digital age. These new developments in the UK support our assertion. In this article, we will discuss what new rules are going into effect and how identity verification will change for UK gambling customers.

Age Verification Becomes More Stringent

Currently, in the UK online gambling operations have 72 hours to perform age verification checks on their customers. This is not ideal because it has created an environment where underage players are able to gamble. According to the new rules proposed by the UKGC, age verification will now take place during the onboarding process. Companies will have to perform customer identity verification to verify user’s age before depositing funds into an account or being allowed to gamble in paid or free gaming environments. This is all in an effort to minimize children from gambling. It will create a better online environment for children as well as preventing a gateway to gambling-related harm.

Identity Verification is Standard

Gaming operators in the United Kingdom previously did not have to follow KYC best practices with their customers. It was common for many operators to perform KYC checks after a player had gambled. This is not in line with customer due diligence protocols and is being changed. The new UKGC rules outline that operators must implement KYC checks before a player has gambled. At a minimum, gambling companies must verify customer names, addresses and date of births during these checks. These checks are aimed at helping prevent harm on gaming platforms and stop crime.

Creating Better Gambling Practices

The changes being implemented by the UKGC will help gaming companies detect criminal activity and mitigate fraud on their platforms more effectively. This is because they will have more access to information about their customers through ID authentication and other verification methods. The changes by the UKGC also will stop the questionable practice of demanding identification during the cash out process, because players will have submitted that information earlier—presumably during onboarding. Currently, about 15% of the complaints the UKGC receives are about identity verification demands from gambling operators to customers during cash out. These new rules should eliminate this dubious practice. Plus, the new rules will increase the likelihood of a player being identified if they try to gamble while self-excluded. All these changes will create a better gambling environment for all players.

A Secure Identity Verification Process

The UKGC has not outlined exactly how gambling operators should perform age verification and customer identity verification checks. Nevertheless, they expect gambling companies to perform due diligence. Companies must carefully assess how they will meet these requirements, or risk facing severe fines from the commission.

IDMERIT can assist gambling operators in the UK in performing these KYC and AML checks. Our proprietary solutions offer the ability to perform near-instant, fully-automated customer identity verification checks in conjunction with age verification. Our solution IDMscan would perform ID authentication on a player’s identity document, check the authenticity of the personally identifiable information on the document and then confirm that they are who they say they are. During this process, age verification would take place right after identity verification. The date of birth on the identity document would be extracted and used in this process.

Conclusion

Gambling operators must comply with the new rules set forth by the UKGC. This will ensure compliant operations and create a safer online gaming environment. Performing customer due diligence will protect users and operators from fraud, underage gambling and dubious online casino scams. Employing identity verification solutions can assist in meeting the new UKGC regulation standards that will come into effect on May 7, 2019.

Please contact IDMERIT for more information about its proprietary identity verification solutions and how they can assist your gambling operation.

The post UK Regulation: New Customer Identity Verification Rules appeared first on IDMERIT.

It is estimated that there are 2.2 billion active gamers in the world and almost half of them, 47%, spend money while gaming. Game revenue from these users is expected to reach $108.9 billion, with 87% of that revenue coming from digital revenue. $56.05 billion, or 51.5%, of this revenue is predicted to come from the online gambling market.

With these staggering numbers, it is no surprise that casinos are looking to join in on this lucrative sector. In 2018 alone, 7 states have introduced bills to legalize online gambling. These states, which include Michigan, Pennsylvania, and New York, would join states like Alaska, California, Oregon, and Louisiana to allow some form of gambling for residents over the age of 18.

Know Your Customer (KYC)

Companies with a responsible moral compass who are looking to uphold their reputations should make an effort to follow regulations imposed by regulatory authorities. This includes following KYC procedures, which require identification along with age verification procedures for online gamers.

Having an effective KYC procedure in place also prevents online gambling companies from having to pay large fines to regulators. The United Gambling Commission (UKGC) forced 888, a prominent online gambling company, to pay a penalty of around $10 million for flaws in their KYC process. In their flawed system, 888 allowed 7000 customers who had barred themselves from their accounts to still be able to gamble. Furthermore, they failed to notice for 13 months that a customer was betting $1.7 million on their platform before identifying the user as problematic.

Underage Usage

Just like there are laws preventing minors from being sold alcohol, there are laws preventing minors from gambling. Online casinos have a social responsibility to uphold these laws and ensure they are enforced.

In Pennsylvania, the Sands Casino Resort has paid $341,000 in fines to the state due to instances of underage gambling. Other casinos throughout the state have also been issued $2.2 million in fines for underage gambling. Sands Casino CEO Mark Juliano states that no one wants to deal with underage gamblers. It’s not good for anybody. He also states that his casino along with others is aggressively working toward 100 percent elimination of underage gambling.

Fighting Fraud

Having a KYC process in place may seem like a nuisance to users, but it is an essential step in fighting fraud and mitigating risk. By knowing the customers they are interacting with, companies who follow a KYC process can protect users from different types of gaming fraud including account takeover, bots, arbitrage, and friendly fraud.

Various state lotteries are increasingly allowing people to buy lottery tickets online or through smartphone apps as well. This has been done in an attempt to appeal to millennials, who, unlike previous generations, do not regularly play the lottery. Online registration makes it easier for people to participate in the lottery since users do not have to wait in long retail lines or worry about losing their winning tickets.

With this type of system in place, it is important to prevent fraudsters from stealing legitimate people’s earnings. It builds credibility for the lottery system, making it more likely for people to continue using it.

Identity Verification

Online gambling companies and casinos must invest in identification technologies to mitigate the risk associated with underage users and fraudulent accounts on their systems. These technologies can help prevent users who do not have valid forms of identification from gambling online illegally.

Some of the benefits of having identity verification processes for online gambling include:

• Improved risk management
• Age verification for all users
• Potentially fraudulent user discovery
• Compliance with KYC & AML regulations
• Increased trust with regulators

Conclusion

Identity verification offers peace of mind to online gaming providers, particularly online gambling institutions. It allows them the opportunity to protect themselves by checking the validity of their customers before they join their services. Meeting regulatory compliance makes online gambling platforms more credible and builds trust between them, regulators and consumers.

The post Identity Verification Solves Problems for Online Gambling Companies appeared first on IDMERIT.

Complying with the latest governmental rules and regulations is often a major challenge for online bookmakers and gambling websites. Gaming websites need to find a narrow middle ground in order to balance their corporate interests with governmental regulations. Too much security during the sign-up phase and customers are likely to look elsewhere for their needs. Too little security, however, and businesses can fall foul of the law, or worse, be targeted by fraudsters.

New requirements for Online Gaming in the US, as a part of the Customer Identification Program (CIP) and the new Financial Crimes Enforcement Network (FinCEN) rules coming into force this year in May, use age verification as part of a triple-lock system.

A fully functional, robust age verification system can help providers establish a fast-growing user base, driving a rise in number of accounts. A scrutinized registration process can ensure that only players who are above the legal age are registered. Hence, problematic legal issues involving minors can be avoided at the root, saving time, money and rapport. Furthermore, demonstrations of proper compliance and due diligence can enormously boost a company’s reputation in the eyes of both the public and regulators.

Much as in the world of cryptocurrencies, manifesting a strong approach towards security and proper conduct enormously improves the end-user experience for companies. Furthermore, a well-managed and policed approach to security – of which proper age verification policy form an inexpensive and robust part, provide part of a protocol that allows a simple approach to change management. Identity verification platforms like IDMERIT provide a robust age verification module is perhaps the easiest security module to implement, is an additional bonus. This also removes the need to include them in regular security reviews, as they should be considered almost an automatic feature of any gaming site’s security protocols.

Coupled to the obvious benefits brought by lower incidence of fraud, age verification allows for easier identification checks – especially when bundled with other identity information. The commonplace nature of age verification checks, an almost every day encounter for online users, is also considered non-obtrusive, ultimately increasing customer loyalty.

The post Age Verification in Gaming Industry – A major Challenge. appeared first on IDMERIT.