Despite its considerable size, the online gaming market continues to grow at a rapid pace. Global revenue for 2022 is forecast by Statista at a volume of 21.77 billion EUR. By 2026, further market growth of around one quarter is estimated to reach a global volume of 26.73 billion EUR. This corresponds to an annual growth of more than 6%.
WHOW Games operates online game portals
With 90 employees, WHOW Games is one of the top 20 German games developers. On the online game portals operated by WHOW Games, such as Jackpot.de, myjackpot.com or MaryVegas.com, millions of users from all over the world enjoy the rich and free range of classic casino games, which offer an entertaining collaborative gaming experience through the addition of social game mechanics. Players generally receive the virtual chips used on the portals for the individual casino games free of charge. However, in order to expand their own gaming experience somewhat, portal customers also have the option of purchasing additional chips and further gaming functions by paying real money. It is not possible to exchange virtual chips for real money.
To ensure that the payment processing of its customers is protected against fraud attempts, WHOW Games has enlisted the expertise of RISK IDENT in the area of fraud prevention.
Also based in Hamburg, RISK IDENT secures an important part of its customers’ online sales against fraud attempts. Its services range from device fingerprinting to state-of-the-art machine learning algorithms that establish links between transaction data and identify patterns of online fraudsters before they can cause financial damage.
Both companies are united by their Hamburg origins
Due to the local proximity as well as thematic intersections of the two companies, a close and trusting contact already developed when the two companies met for the first time at Gamescom 2019, which was finally crowned by the official signature of an agreement in September 2020. Although WHOW Games already had customer identification solutions in place, these were in-house developments born out of necessity and were soon no longer able to cope with the rapid growth of the game developer. After initial discussions and a short test phase, the decision-makers at WHOW Games were quickly convinced of the advantages of RISK IDENT’s FRIDA and DEVICE IDENT solutions.
RISK IDENT can prevent the majority of payment defaults
“Already the first weeks of our cooperation showed us the advantages of a professional fraud prevention solution. With direct debits alone, which account for the majority of our sales, we have been able to reduce more than 2/3 of our defaults thanks to RISK IDENT” praises Nils Plohmann, Head of Payment at WHOW Games the good cooperation. We at WHOW Games appreciate not only the sophisticated solutions, but above all the close exchange with our contacts.”
The increasing revenues of the online games industry from year to year as well as the natural susceptibility to fraud and identity theft on the Internet do not only arouse the desires of professional cyber criminals. Time and again, it is the players themselves who seek to gain an unlawful advantage through fraudulent activities. It often happens that players buy virtual chips via a third-party or uncovered account. As a result, the corresponding direct debit must be reversed. To eliminate this time-consuming, expensive and sometimes futile process in the future, the device information of suspicious customers is examined beforehand. This information is then merged with the transaction data of the fraudsters. The real-time analysis tool FRIDA uses machine-learning-based algorithms to identify suspicious patterns and convict online fraudsters before they can carry out their deed. This makes it possible for the platform operator to prevent financial damages and time-consuming recoveries in advance.
“In the virtual space, the rules of the game are completely different”
“Online gaming is an industry of the future that inspires many millions of gamers every year. As a specialist in securing online payment methods, we see ourselves as a natural partner for game developers and platform operators,” says Christian Grundmann, Director Sales & Business Development at RISK IDENT, describing the good synergies with WHOW Games, and concludes, “In no other sector is the focus so strongly on virtual goods and electronic payments as in online games. However, the rules of the game in the virtual space are completely different from those in the physical world. With our proven solutions, we believe we are ideally positioned to secure transactions in the emerging online ecosystems. At RISK IDENT, we can help all online aspirants build a solid and fraud-proof business foundation with our expertise.”