Wargaming is an award-winning online game developer and publisher headquartered in Nicosia, Cyprus. Operating since 1998, Wargaming has grown to become one of the leaders in the gaming industry with 4500+ employees and offices spread all over the world. Over 200 million players enjoy Wargaming’s titles, including the massively popular free-to-play hit World of Tanks, across all major gaming platforms.
Every industry faces different kinds of fraud. And even within the gaming industry, the types of fraud experienced by Wargaming will be different from other businesses.
For example, in our games, players can purchase in-game items and vehicles. However, players are not allowed to resell these digital goods and there is no cash out. This massively reduces the options for fraud, but some still find a way around it.
One popular type of fraud we witness is when a fraudster creates a new player account and buys various in-game items with a stolen card. The fraudster will take a screenshot of these items and offer to sell the account for less than the total cost of buying the items individually.
Once the cardholder realises that their card has been compromised, they claim a chargeback. And once a notification of a chargeback reaches our system, the associated player account is automatically blocked. Therefore, once someone buys this account from a fraudster, they cannot enter the game. The account can be unblocked only in the event of a full repayment, or when the items are fully removed from the account.
In this way, we at Wargaming build systems and processes to defend against instances of fraud when they arise. But fraud never stands still, it’s constantly evolving, and as soon as you learn how to cope with one type of fraud, a new one emerges.
You have to keep on top of fraud, constantly identifying new fraud tactics and learning how to combat them. Which is why having great monitoring tools is so important. This is how we learned that fraud spikes tend to occur around Christmas and, armed with this knowledge, we spend a lot of time putting fraud measures in place for this period. We also implemented Credorax’s machine learning tool earlier this year and we are already seeing its effectiveness in recognizing new instances of fraud.
The new Strong Customer Authentication (SCA) requirements with PSD2 will also help to minimize fraud, but we have prepared for a short-term decrease in acceptance rates and conversion rates for online transactions. Let’s be honest, as with any big regulatory change, it’s messy to start with! Many merchants weren’t properly educated by their payment service providers. Even now there’s a lot of confusion and everyone is expecting everyone else to provide the answers.
This is where having a strong acquirer has been hugely beneficial to Wargaming. Credorax constantly updated us about what was going on in the industry and how we needed to prepare for SCA. Because of this, our SCA solutions were finalized and ready well before the deadline. And, because Wargaming is likely to use low-value transaction and Transaction Risk Analysis (TRA) exemptions to SCA, it’s good to know Credorax has a specific engine to facilitate raising these exemptions.
However, SCA will ultimately offer maximum protection against fraud for customers, businesses and issuers. It’s a good thing! But in this initial period of confusion, partnering with a payment processor that can keep you informed about your obligations is of the utmost importance.
To learn more about Credorax’s fraud solutions, email firstname.lastname@example.org.