Minors’ Safety First: Compliance for Responsible Organizations
The recent Pupil Monitor 2023 report by the Trimbos Institute reveals alarming statistics: despite the prohibition of online gambling for minors, 1 in 9 boys in The Netherlands have gambled online. It’s clear that stronger measures are needed to protect the youth from the consequences. One of the preventative measures is by applying an identity verification system in your processes. We will talk about the concept of iGaming, how minors can avoid verification, as well as the role of identity verification in protecting the youth and ensuring compliance.
What is iGaming?
iGaming is defined as the practice of making bets or playing games of chance or skill on the internet, often with real money. This includes a range of activities, such as online casinos, sports betting, and poker.
There are no overarching iGaming regulations in the European Union, so each country establishes its own rules and guidelines. This results in a diverse regulatory landscape, with some countries allowing certain iGaming activities and prohibiting others. In addition, some countries ban all forms of iGaming. If you would like to see the various regulations across the EU, you can read more here.
The Challenge: How Minors Can Avoid Verification
The research by Trimbos Institute includes students in primary and secondary school- aged 10-16. About 1 in 9 boys gamble for money online, while girls do this less frequently (1 in 50). They find out that minors mainly bet on sports.
Ruigrok, a research agency, interviewed 975 young adults ages 18 to 24. Although they are of legal age, they are legally considered as vulnerable group, said Tony van Rooij, a researcher at Trimbos Institute. 30 percent said they would likely gamble on sporting events in the coming months, while 32 percent said they might, especially with the European Football Championship. On average, youths lose 600 euros per year.
iGaming companies are obligated to verify a player’s age, and recent regulations have tightened these checks. However, the Pupil Monitor indicates that minors still find ways to gamble online using a variety of deceptive strategies. One common method is to use counterfeit ID documents. They may also borrow it, often obtained from older family members or friends, to create accounts that appear legitimate. Furthermore, they may use VPNs to hide their location or purchase pre-verified accounts on the black market. This highlights a critical gap in the current verification systems, emphasizing the need for more solutions.
The Role of Identity Verification in Protecting Minors
Identity verification plays a crucial role in ensuring that only eligible users can access age-restricted services like online gambling or iGaming. By leveraging advanced technologies, companies can significantly reduce the risk of minors bypassing the verification process. Here’s how:
- Verifying Information of Users: Traditional methods of age verification, such as entering a date of birth, are relatively easy to circumvent. Identity verification solutions examine various aspects, such as document templates, biometrics, and security features, to detect inconsistencies and evidence of tampering. Organizations can thwart attempts by unauthorized users by using forged documents to avoid age restrictions.
- Face Verification Technology: Face verification adds a layer of security by matching the user’s selfie with the photo on their verified ID. This technology can prevent minors from using borrowed or stolen IDs to onboard gambling websites. It can also be used for continuous verification, ensuring the account holder is the one using the account.
General Advice
Minors can be skilled at finding ways to bypass online restrictions. To enhance their safety and ensure compliance with regulations, organizations can follow these strategies:
Organizations can notify customers when their account is accessed from a different device or IP address. Notify customers about unusual account activity via communication channels such as email or SMS.
Moreover, organizations can periodically re-verify users’ identities in accordance with the business’s risk profile. This can minimize account takeovers, where unauthorized people take over a legitimate account.
Additionally, implementing multi-factor authentication (MFA) increases security by preventing unauthorized access and making it more difficult for minors to use borrowed, stolen, or fake credentials.
Helping Companies Stay Compliant
By adopting robust identity and face verification technologies, companies can:
- Ensure Regulatory Compliance: Staying compliant with national and international regulations requires more than just ticking boxes. Advanced verification systems help companies meet the strictest regulatory standards, reducing the risk of fines and other penalties.
- Build Trust with Customers: Implementing transparent and effective verification processes enhances a company’s reputation and customer loyalty.
- Reduce Fraud and Risk: Comprehensive identity verification not only protects minors but also reduces the risk of fraud and account takeovers, contributing to a safer and more secure online environment.
Keesing AuthentiScan + Face Verification
Keesing AuthentiScan is an exceptionally reliable identity verification solution that combines advanced document authentication and face verification technology. To ensure precise and accurate verification, our system uses cutting-edge algorithms and a comprehensive database of over 7,000 types of authentic identity documents from more than 200 issuing organizations.
Keesing AuthentiScan + Face Verification detects and prevents the use of fraudulent IDs and/or identity theft, making it hard for illegitimate users to have access. Our solution is designed to meet and exceed stringent regulatory requirements such as KYC and AML, giving businesses an effective and adaptable tool for protecting their platforms, ensuring compliance, and protecting minors.
Contact us below to get a free demo of AuthentiScan. If you have any other questions, please contact us via email or call +31 (0)20 7157 825.
