SPOTLIGHT ON BRAZIL
checked, and a PEPs and Sanctions screening is included. Additionally, when we discovered that most Brazilians tend to keep their identity cards in plastic sleeves, we amended our onboarding instructions in the user interface. By including culturally tailored instructions, such as requesting the removal of IDs from plastic sleeves, we ensure users can complete document capture with ease.
IDnow is fairly unique in the market in its ability to combine these geo-specific capabilities, like the integration with the CPF, with AML-compliant, multi-dimensional identity verification and fraud prevention solutions.
Matt: How important are Brazil-specific fraud prevention solutions, including advanced risk signals, device analysis, behavioural insights and automated KYC tools to ensure full compliance with Brazilian gaming regulations (Law 14.790/2023)? How can operators in Brazil guard against bonus abuse, underage gambling and financial crime using advanced fraud prevention and seamless identity proofing? Roger: A robust customer onboarding experience for a Brazilian gaming platform should restrict fraudsters and underage or ineligible users from opening accounts, while protecting genuine players from fraud and potentially saving the company millions in AML fines. Alongside the CPF validation, the check against restrictive lists, and PEPs and Sanctions list, fraud detection technology with advanced risk signals or device analysis can provide an additional barrier by protecting against various fraud attacks. For example, our IDnow advanced fraud detection technology flags whenever a forged document is submitted and can verify whether prospective players are real through liveness checks, all without adversely impacting the user journey. Such checks can help prevent common and emerging fraud types like bonus abuse – which costs the online gaming industry up to 15% of its gross revenue – but also against (synthetic) identity theft.
Gross gaming
revenue from sports betting could surpass five billion Brazilian reals (roughly US$875 million) by 2026
Matt: How can innovations in identity verification and authentication technology enable Brazilian gaming operators to enter new markets securely and reduce customer acquisition costs? Roger: As regulations, data and document types, and customer requirements differ per region, there is a major advantage in choosing an identity verification provider that can be tailored to a specific country’s risk and KYC needs. It has to be noted that there is a substantial financial investment in obtaining a gambling license in Brazil (R$ 30 million, around US$ 6.1 million] for five years), so it is important that adequate steps and provisions are taken. Not to mention that companies that operate without a license face having their websites blocked and fines of up to R$2 billion (around US$354 million). By implementing advanced biometric authentication, such as facial recognition, operators can ensure robust security measures, deterring fraud and enhancing trust. Additionally, leveraging AI-driven identity verification solutions can streamline the onboarding process, reducing friction and improving user experience. This not only attracts more users but also lowers acquisition costs by minimizing manual interventions and enhancing efficiency. Being able to offer a holistic approach to identity verification that can combine compliance services, including identity verification, biometric authentication and data verification to meet any country’s requirements will very quickly become a necessity. IDnow’s modular and scalable orchestration hub has been designed to reduce technical complexity and enable global operators to balance strict KYC and AML requirements with a seamless user experience.
APRIL 2025 21
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