GeoComply, a world-renowned geolocation security company, has partnered with Accertify to launch the Chargeback Integrator System to assist in solving chargeback disputes for operators. Thanks to this partnership, GeoComply’s geolocation data will be integrated with Accertify’s chargeback management solution.
Chargeback Frauds May Reach $130 Billion by 2023
The all-in solution will infuse the data provided by GeoComply and Accertify and make sure that chargeback frauds do not take place. Anna Sainsbury, the co-founder, and CEO of GeoComply shared a few words on the importance of dealing with these issues in the most effective manner.
She said that the continued growth of eCommerce has also resulted in an increase in friendly fraud where online gambling operators lose a huge chunk of their revenue each year. She explained the fraud by saying customers conduct a transaction to place a bet, but then, dispute the charge as fraudulent.
Operators that do not have the adequate tools to combat this issue face a major problem. Sainsbury added that by 2023, these frauds will amount to $130 billion on a global scale. The worst part about it is that 18% of the merchants that dispute the chargebacks are successful.
That is why Sainsbury considers the partnership with Accertify extremely important for the iGaming industry. She says that the whole security system can be automated and thus, give operators the necessary tools to combat chargeback frauds.
Mark Michelon, the president of Accertify, stated that this solution is the first of its kind and that the collaboration between the two companies will result in “a positive impact for gaming operators.”
Ontario’s Newly Regulated Market Is Facing a Similar Problem
Ontario, Canada’s biggest province, launched online gambling on April 4 and now, the regulator is facing a massive problem similar to chargeback fraud. Players have been reportedly entering self-exclusion programs through which they can refund their money.
Each operator in the province is required to have a self-exclusion program and if a player enters the program, all of the funds that are used to wager are refunded instantly. The problem is that the rules state the “pending and future” transactions are refunded, but the term “future transactions” is unregulated and that is how players are able to manipulate the system.
The Alcohol and Gaming Commission of Ontario (AGCO) aims to regulate the industry in the most efficient way, which is why it announced that it plans to come up with a centralized self-exclusion system to close these loopholes.
Raymond Kahnert, a senior AGCO communications advisor, stated in an email that the regulator is aware of the problem and at the moment, it is gathering more information before acting.