JULY 2018 DIGITAL IDENTITY TRACKER™ Why Gambling Site 888 Is Betting On AUTOMATED AUTHENTICATION Protecting gambling payments without slowing down players 6Page 6 (Feature Story) Australia announces plans to provide all citizens with digital identification by 2025 10Page 10 (News and Trends) Find the top providers in the latest Tracker Scorecard 18Page 18 DIGITAL IDENTITY TRACKER™ TABLE OF CONTENTS What's Inside 03 PYMNTS explores the latest digital identity developments, including the governments embracing the allure of new identity technology, from Australia to Europe and even the Bahamas. Feature Story 06 Russell Medley, director of risk management and fraud for online gambling platform 888.com, describes how the company balances security and speed to keep customers both happy and safe. News and Trends 10 The latest headlines from around the digital identity industry Deep Dive 15 Online gambling is projected to be an $81.7 billion industry by 2022, but an increase in fraudulent activities threatens the space’s growth. This month’s Deep Dive explores the latest threats to online gambling, and the measures players around the space are taking to stop them. Methodology 17 Who’s on top and how they got there, featuring three sets of top provider rankings based on consumer data, device intelligence and transaction behavior Scorecard 18 The results are in: See the highest-ranked companies in a provider directory of more than 150 major digital identity players. About 86 Information about PYMNTS.com and Jumio Acknowledgement The Digital Identity Tracker™ is powered by Jumio, and PYMNTS is grateful for the company’s support and insight. PYMNTS.com retains full editorial control over the findings presented, as well as the methodology and data analysis. © 2018 PYMNTS.com All Rights Reserved 2 WHAT’S INSIDE nce the government-issued identification standard, the driver’s license and photo ID card may become passé as countries around the world look to new technologies and innovations in order to digitize identification methods. OAustralia, for one, recently announced plans to assign all citizens a digital identification credential by 2025, a move motivated, in large part, by the savings it can potentially provide. According to industry research, going digital could save Digital to design a cybersecurity system that will protect the country billions, despite the large cost associated digital identity credentials. with the development and launch of these initiatives. Michael Keenan, Australia’s minister assisting the prime Two European governments are also hopping on the minister for digital transformation, recently said that digital identification bandwagon. the government is hoping to eventually use the digital The Swiss city of Zug, for one, is furthering its reputation ID program, myGovID, to bring “all levels” of government as an early adopter of blockchain technology. The city’s transactions online. This could reduce the average cost of government recently announced it would begin using government transactions from $17 per transaction to less distributed ledger technology to power government than 40 cents, saving taxpayers billions. issued IDs and operate an eVoting pilot designed to test Australia isn’t the only country seeking to digitize its the possibility of using the blockchain to power resident authentication processes. Recently, countries and islands IDs and voting systems. from seemingly every corner of the planet have discussed Meanwhile, residents of Jersey, a small English island or rolled out new solutions for their citizens. located near the coast of Normandy, may also have Here’s a quick snapshot of recent news from the access to digital identities soon. worldwide digital identity space: The island’s local government announced a new digital For Bahamian citizens, digital identification credentials identity initiative — the Jersey Digital ID Project — which could soon become a reality. calls for the island’s local government to work with Bahamian Deputy Prime Minister Peter Turnquest U.K.-based security startup Yoti to offer digital identity announced that the government is working to create a authentication and verification services to the roughly single digital identity credential. The move is designed 100,000 inhabitants of the island. to provide the country’s citizens with easier and more For more of the latest digital identity headlines, check out efficient access to government services. He also said the Tracker’s News and Trends section (p. 10). the company is working with local solution provider GIBC © 2018 PYMNTS.com All Rights Reserved 3 WHAT’S INSIDE Protecting gambling payments This month’s Tracker also examines how online gambling platforms are working to embrace new security solutions. Online gambling is a massive, quickly growing industry, expected to reach $81.7 billion in annual revenue by 2022. But, as PYMNTS explores in this month’s Deep Dive (p. 15), a rising rate of fraud attacks and cybercrime shadows over the space, with bad actors wielding weapons like IP spoofing, VPNs and others in their quest to beat security providers. Embracing new authentication solutions won’t be easy, in large part because online gamblers don’t want to deal with long, drawn-out processes when they want to make a last-minute bet. Roughly 25 percent of gamblers have abandoned an attempt to open a new account because the process was too long or complicated, researchers found. Russell Medley, director of risk management and fraud for online gambling platform 888.com, says companies in the space aren’t taking the threat lying down. Medley told PYMNTS how 888 and others are working to balance the need to authenticate and validate customer identities with the speed and ease of use that is demanded by users in this month’s Feature Story (p. 6). July Tracker updates This month’s Digital Identity Tracker™ also features more than 150 top providers from the space, including five new additions: BeyondTrust, CredenceID, Inflection, LastPass and PointPredictive © 2018 PYMNTS.com All Rights Reserved 4 WHAT’S INSIDE Total number of consumer records $1.4 exposed on the black market over the billion past year Share of cryptocurrency exchanges that 68% follow “little-to-no” KYC protocols Percentage of consumers who say they are comfortable Five Fast Facts 90% answering knowledge-based authentication questions Projected increase in the value of the 12% digital security market by 2020 Increase in fraud attempts targeting 58% call centers last year © 2018 PYMNTS.com All Rights Reserved 5 Why Gambling Site 888 Is Betting On FEATURE STORY FEATURE AUTOMATED AUTHENTICATION © 2017 PYMNTS.com All Rights Reserved 6 FEATURE STORY The main challenge is that online“ gaming is very immediate RUSSELL MEDLEY director of risk management and fraud for 888.com ” nline gambling sites are facing global regulatory those regulations present a challenge. challenges, most recently on a state level within the U.S. More states are opening online gambling “It’s quite tricky, because there are a lot of different O regulations,” he explained in a recent interview with up to their residents, and passing unique regulations that often differ from those in other states and countries. PYMNTS. “Every country we work in has different rule Foreign nations play host to a range of online casino requirements.” games, poker tables and sports betting, among other New regulations aren’t the only hurdle online gaming forms of gambling, all of which are legal. providers must clear, however. These companies must Russell Medley, director of risk management and fraud for also find a way to quickly authenticate new customers as gaming website 888.com, which offers access to online they register for accounts, deposit funds, place wagers casino and poker games in more than 100 countries, said and, hopefully, withdraw their winnings. © 2018 PYMNTS.com All Rights Reserved 7 FEATURE STORY Authenticating new accounts Most new online gaming participants expect to play games and place wagers right away when registering with an online gaming platform, Medley said, and many decide to do so as entertainment on an otherwise uneventful night at home. That means users will likely abandon the account creation process if 888 cannot authenticate and verify the new account, enabling them to quickly make deposits — and they may never to return. “The main challenge, I think, is that online gaming is very immediate,” he added. “People want to be able to register [for] their accounts, get on the site straight away and start playing with funds. It’s a very immediate channel.” Online gamblers — even experienced ones — expect to pay for a wager as quickly and simply as they’d pay for a purchase on Amazon or any other eCommerce site. Simply put, today’s consumers expect to instantly complete online transactions, whether they’re managing their bank accounts or placing bets. This need for speed means online gaming platforms can’t afford to depend on manual security checks or other slow, legacy authentication processes. Instead, 888 and companies like it must rely on automated tools to verify identity documents and perform know your customer (KYC) and anti-money laundering (AML) checks. “If there are more hurdles that we put in their way, or more things that might prevent them or delay them from playing, it creates a drop off,” Medley said. “So, it needs to be an immediate thing, and that’s where we need to be able to get people through our processes as quickly as we can behind the scenes — [and] with minimal intrusion.” © 2018 PYMNTS.com All Rights Reserved 8 FEATURE STORY Withdrawing winnings The security and authentication challenges online casinos As a general rule of and sportsbooks face don’t stop once a customer has thumb, you should been properly authenticated, though. In fact, according to Medley, that process is just the beginning. always put the money Once a customer registers an account and makes a back where it came from.