From risk to revenue: Managing video gaming risks

Second of two parts

Previously, we explored the evolving fraud risks facing the video gaming industry. Now we focus on key strategies developers and publishers can use to safeguard video gaming platforms, protect players and future-proof growth.

By Mathilde Sarfas, strategy manager, and Eliano Rexho, senior strategy manager

To combat the rise in fraud, video gaming companies must think beyond patchwork solutions. Fraud prevention needs to be embedded into every layer – from account creation and game play to purchases and dispute resolution. Here are five key strategies for building a smarter, more resilient fraud framework.

With the rise of microtransactions, in-game currencies, stored wallets and personalized items, a player’s account has become the gateway to real financial value. Gaming companies should ensure that only legitimate users have access to their accounts using such tools as:

• Multifactor authentication and 3D Secure to verify identity at key transaction moments.
• Biometric logins (such as facial recognition or fingerprint scans) for enhanced protection across mobile and console environments.
• Tokenization, which replaces sensitive payment data with encrypted tokens, to reduce the risk of exposure even in the event of a breach.

For example, implementing behavioral biometrics can help flag when an account is being accessed with a familiar password but unfamiliar typing patterns or game play – catching fraud before purchases are made.

Building strong authentication is one of the most direct ways to combat fraud.

Use real-time data

Fraud often starts in the game itself. Fraudsters exploit in-game systems to manipulate economies, launder money or unfairly accumulate assets well before a chargeback or dispute hits the system. To get ahead of this, implement real-time behavioral monitoring that can:

• Detect anomalies such as sudden surges in currency or item accumulation.
• Flag bot-like activity including irregular movement patterns, high-frequency inputs or account farming.
• Analyze data like playtime, chat activity or trading behaviors to identify high-risk users.

AI tools, which continuously learn from both legitimate and illegitimate behavior, are becoming increasingly popular and sophisticated for improving detection accuracy. For instance, if a new account uses patterns that don't match normal play to amass rare items within minutes of being created, it can automatically be flagged for review.

Protect in-game economy and community

Games now offer dozens of opportunities to make purchases. That, combined with the large number of younger players, creates opportunities for financial exploitation.

To foster safer, fairer player ecosystems, video gaming companies could:

• Establish secure trade platforms that validate the legitimacy of item exchanges.
• Set dynamic purchase limits on high-risk items or on new or underage accounts.
• Offer robust parental controls, including spending caps and purchase approval settings.
• Use AI-powered tools that monitor for suspicious messages, scams or exploit attempts in player chats.
• Empower players with accessible reporting tools and responsive support when issues arise.

For example, developers can design gated item exchanges in which both parties must confirm the trade through secure steps, reducing the risk of bait-and-switch scams.

By implementing these measures, gaming companies can build trust, protect younger users and create a safer environment.

Invest in end-to-end payment infrastructure

Working with a payments partner that offers a broad array of tools and services can be key to protecting your business growth. With the digital fraud rate in gaming at 7.6% in 2023, fraudulent activity can happen at many points in the gaming experience.

Investing in tools to protect every point of the experience is a responsible way to protect your business and customers. Worldpay’s suite of security tools can create a tailored solution that helps videogame businesses build trust, drive revenue and grow with confidence.

Stay ahead of regulations

From billing practices to child protection and data privacy, compliance plays a pivotal role in managing risk. To stay ahead, gaming companies should:

• Align with regional standards, such as PSD2 in Europe and PCI DSS.
• Comply with age-specific regulations, like the Children’s Online Privacy Protection Act in the U.S., or South Korea’s Youth Protection Act. These limit data collection and require parental consent for users under age 13; and mandate identity verification and enforce curfews and spending caps for minors.
• Build compliance into product and payment design. For example, Japan’s Payment Services Act regulates how in-game currency is stored and classified – treating it as “prepaid payment instruments” subject to reporting and refundability requirements.
• Document policies and consent flows, so audit trails are clear and legally defensible in the event of a dispute.

Regulation is not a one-time hurdle; it’s an ongoing obligation. Companies that treat compliance as part of their core design ethos are better equipped to scale globally and sustain player trust.

Trust is the next frontier

As gaming evolves, so, too, do the risks. Sophisticated fraud threats are an inevitability in an ecosystem defined by real-time payments, digital goods and younger audiences.

Just as developers and publishers have embraced innovation to enhance game play, they must now do the same to secure the player journey. By embedding intelligent fraud strategies, forward-thinking gaming, companies can protect their communities, minimize financial loss and reinforce the trust that underpins lasting loyalty and offers the ultimate competitive advantage.

Worldpay works with video-gaming merchants across the globe and can help to keep your gaming payments safe, sustained and optimized. Find out more or get in touch.