If you operate an intra-state online gaming business – which may touch mobile, online and social platforms – location is EVERYTHING. If you live in New Jersey, you know that you can play poker and casino online if you meet certain requirements and play in the state.
And as more states come online – most recently for lottery in Michigan, New Hampshire and Pennsylvania – geolocation remains a necessity in combatting location fraud.
Realizing the importance of geolocation – from an operational and security standpoint – Vantiv Entertainment Solutions teamed up with industry trailblazer GeoComply in 2013, who remains a vital partner in gaming transactions today. Across multiple industries, GeoComply is the leader in geolocation technology and compliance services, with ten million transactions a day globally.
In addition to ensuring adherence to regulations and ultimately promoting acceptance, GeoComply’s anti-fraud measures have historically lead to an 85 percent reduction in chargebacks. As a refresher, chargebacks are those fees that come as a result of a cardholder-disputed Visa, MasterCard or Discover transaction. A chargeback could be due to fraud, quality issues, credit not processed, no authorization, merchandise not received, or duplicate processing.
“Gaming and entertainment businesses face unique challenges when it comes to fraud prevention,” said David Briggs, chairman of GeoComply. “We’ve created an automated solution – with VES – for gaming operators that is reducing fraudulent activity in real-time. In conjunction with VES, we’ve made it easier for businesses to nip fraud in the bud, not only through innovation but through educating the industry as well.”
Chargebacks have a significant impact on any gaming entity’s bottom line, if not managed properly and if the proper safeguards are not in place.
GeoComply’s fraud detection solution, GeoGuard, monitors identity theft, account takeover, promotion abuse, credential stuffing and more. As a result, there is less likelihood of producing false positives, which reduces costs and the user experience is improved.
“In approximately one in three cases of financial fraud we see worldwide, location faking is also a factor,” said a risk officer at a global gaming company that utilizes the GeoComply system. “This is an increasing trend and we expect that by the end of 2017 the majority of fraudsters will spoof location as a matter of course. Removing our ability to detect location fraud would rob us of an essential early-warning tool to pre-empt the fraud before it happens.”
In addition to being ideal for lenders and payment processors, GeoGuard can help protect against Tap and Card Not Present technologies.
Tap technology is convenient for consumers, yet poses many risks if a credit card is stolen. GeoGuard can provide services that offer additional protections to consumers who opt-in for additional protection.
For example, once a user opts-in and registers their device via the bank or credit card’s app, a check is made that compares the location of a purchase to the physical location of the registered device. If the locations match, the transaction is processed without any additional input needed.
If there is a mismatch between the transaction location and location of the device, the consumer is prompted via the method selected at registration (i.e. SMS, email or call), in order to verify that the purchase is legitimate. No other provider offers the hyper-accurate location determination that GeoGuard provides.
“Our first line of defense in safeguarding gaming customers is geolocation,” said Joe Pappano, senior vice president and managing director of VES. “When a transaction has been virtually approved by GeoComply and meets geolocation parameters, we are ensured that we are getting a good transaction. VES and GeoComply work hand-in-hand, responsibly and with the same goals in mind – to protect our clients and work within regulations.”
With GeoComply’s geolocation offerings as part of our arsenal, we’ve seen a 35 percent increase in credit card acceptance worldwide. At Vantiv Entertainment Solutions, we’re always looking to partner with organizations like GeoComply who ensure a seamless transaction while protecting the integrity of the gaming operators and their customers.
via Vantiv
