During the investigation, Rs 32 crore in bank accounts and Rs 14.53 crore in crypto-currency were seized.A similar incident took place which was called the Mahadev Scam, where the fraudsters offered small deals to the users on account of downloading the Mahadev app.Once a user commits huge amounts, similar to E-nugget, they disabled the accounts.According to police reports, Rs 405 crore was transferred from 26 fake accounts in 10 banks to other bank accounts.
And then, there is the example of a 60-year-old Delhi resident and his Canada-educated software engineer son who were arrested by the Mumbai Cyber Police for cheating people through their online gaming websites that were accumulating over Rs 200 Crores every year.If we look back, there have been many such incidents of online gaming scams in India where fraudsters successfully seized millions of money from innocent gamers.
The 2020 PubG fraud, the 2019 Dream11 fraud, and the TeenPatti scandal are among some other cases of gaming scams that have taken place in the country.According to The Mobile Game Advertising 2022 report, India is the second largest gaming market in the world now with over 9.33 Bn mobile games downloaded in 2022 alone.India recorded about 390 Mn online gamers in 2021, out of which 95 Mn gamers paid to play.
And this is why there is an increasing need for a strict regulatory environment in the gaming industry to protect against fraud.
Besides, at the gamers' level, there are quick and easy ways to identify scammers that one should keep in mind.Tips to identify and avoid gaming fraudsters Moneycontrol spoke to several experts to figure out ways to identify and avoid online gaming scams.Shubhodip Pal, CEO, Co-Founder of the gaming platform Googly says that first and foremost gamers must make sure that they play on reputable sources with a track record of being safe for users.
They must also be cautious while engaging in In-App purchases, and avoid giving out critical/sensitive information on such platforms.Pal further suggests using the updated version of the apps/platform game as app developers continuously bring better features to the table to ensure safety.”Phishing scams are also prevalent on gaming portals, as well as anywhere online.It is therefore better to be wary of the links you click and emails asking you to provide personal/sensitive information,” Pal says.
Kriti Singh, Chief of Staff at a research and policy tank The Dialogue, says that to avoid being scammed on gaming platforms, users should regularly change their passwords and activate two-factor authentication wherever available.
Specifically for children, Singh says that parents should check the content of the game to see if it does not have explicit or violent themes.
To safeguard children from fraud, the username they choose should not reveal any personal information.”There need to be awareness programmes, especially for children, on how to check the authorization of the game, identify online bullying and how to report it,” she adds.
Additionally, gaming operators must do this.Gaming applications need to get themselves KYC (Know your customer)-compliant and complete end-to-end KYC for users accessing their platforms.”Keeping up with the ever-evolving state guidelines with robust identity verification solutions is crucial for all well-meaning gaming platforms.Even a minor delay or oversight can invite heavy penalties,” says Arjit Bhargava, Senior Vice President, AuthBridge Research Services.
The Ministry of Electronics and Information Technology (MEITY) released the draft notification for the amendment to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 to include online gaming intermediaries as a sub-category.
The amendment further notifies additional due diligence for real money gaming intermediaries, registration of an intermediary with a self-regulatory body along with a tiered grievance redressal mechanism.This comes as a welcome move as many of the provisions in the draft Rules are user-centric.Yash Pariani, CEO and Founder of House of Gaming, says that knowing your excellent players and blocking or challenging the bad ones is essential for avoiding gaming fraud.
He recommends using an AI-powered fraud prevention solution that can determine whether a new gaming account, promotion, or payment suggests fraud.”A solution that creates identity confidence for every interaction will enable game developers to prevent new account fraud, reduce promo abuse, and avoid chargebacks.” What to do if you have become a victim of gaming fraud? In case, after doing everything right, you've become a victim of a gaming fraud, then here's what you must do: Report the incident to the gaming platform: The first thing you should do is report the incident to the gaming platform.
Most platforms have a system in place for reporting fraud, such as a customer support hotline or an online reporting tool.
You should provide as much detail as possible about the incident, including the date, time, and any usernames or profiles involved.Contact your bank or credit card company: If you made any purchases during the incident, you should contact your bank or credit card company to report the fraud and dispute any charges.Be sure to provide them with any documentation or evidence you have.Change your passwords: If your account was compromised, you should change your passwords immediately.
Choose a strong and unique password that is not used for any other accounts.
Monitor your accounts: Keep an eye on your accounts and monitor them for any unusual activity.If you notice any suspicious transactions or changes, report them immediately.
Online gaming frauds are increasing day by day but if you act responsibly there are chances of saving yourself from such incidents.Keep gaming safe!.
