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Online Gaming Industry: Blending Player & Risk Management Vivid graphics, high speed Internet access and the appeal of virtual power and wealth are fueling the online gaming industry. As a result, millions of hardcore and casual gamers are spending time and real money in their virtual worlds. Unfortunately, the crossover between the real economy and the emerging virtual economy is attracting both fraudsters and players that abuse the online gaming environment. Buying and selling of game currency and assets for real money has created a lucrative market and increased risks. Credit and prepaid game-time card fraud, theft of virtual assets, and account takeover are some of the most frequently perpetrated fraud types that impact legitimate players, game publishers, and aggregators. As sites expand to offer new services such as digital download of assets, the risks continue to grow. In addition, gaming sites with very young audiences must also deal with parental controls and legal compliance. Whether measured in dollars lost, operational inefficiency, or player experience and protection, the effective control of fraud and abusive activities needs constant vigilance when operating online gaming sites. “iovation has given us the firepower necessary to feel confident about the promise we’ve made to each and every player.” - Daniel Noss, Game Operations Manager, Ntreev How iovation ReputationManager works NUISANCE CRIMINAL CHARGEBACKS PREDATORY BEHAVIOR GOLD FARMING ABUSIVE BEHAVIOR ACCOUNT TAKEOVER Spectrum of Abuse facing Online Gaming

Online Gaming Industry: Blending Player & Risk Management

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Vivid graphics, high speed Internet access and the appeal of virtual power and wealth are fueling the online gaming industry. As a result, millions of hardcore and casual gamers are spending time and real money in their virtual worlds. Unfortunately, the crossover between the real economy and the emerging virtual economy is attracting both fraudsters and players that abuse the online gaming environment.iovation ReputationManager is a proven real-time fraud and abuse management solution that lets online gaming sites augment their player management system with risk management without sacrificing operational efficiency, scalability, or profit margins.

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Page 1: Online Gaming Industry: Blending Player & Risk Management

Online GamingIndustry:

Blending Player & Risk Management

Vivid graphics, high speed Internet access and the appeal of virtual power and wealth are fueling the online gaming industry. As a result, millions of hardcore and casual gamers are spending time and real money in their virtual worlds. Unfortunately, the crossover between the real economy and the emerging virtual economy is attracting both fraudsters and players that abuse the online gaming environment.

Buying and selling of game currency and assets for real money has created a lucrative market and increased risks. Credit and prepaid game-time card fraud, theft of virtual assets, and account takeover are some of the most frequently perpetrated fraud types that impact legitimate players, game publishers, and aggregators. As sites expand to offer new services such as digital download of assets, the risks continue to grow. In addition, gaming sites with very young audiences must also deal with parental controls and legal compliance.

Whether measured in dollars lost, operational inefficiency, or player experience and protection, the effective control of fraud and abusive activities needs constant vigilance when operating online gaming sites.

“iovation has given us the firepower necessary to feel confident about the promise we’ve made to each and every player.”

- Daniel Noss, Game Operations Manager, Ntreev

How iovation ReputationManager™ works

NuisaNce crimiNal

CHARGEBACKS PREDATORY BEHAVIORGOLD FARMINGABUSIVE BEHAVIOR ACCOUNT TAKEOVER

Nuisance Criminal

Abusive Language/Bullying Spam Scam/Financial Fraud Predatory Behavior

spectrum of abuse facing Online Gaming

Page 2: Online Gaming Industry: Blending Player & Risk Management

How iovation ReputationManager™ works

Benefits Increase profitability

Increase operational efficiency

Protect site reputation

Exposes fraudsters/abusers in real-time and keeps them out without impacting legitimate players

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Provides powerful back-office forensic fraud analysis capabilities

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Reduces payment and chargeback & prepaid game-time card fraud

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Helps prevents predatory and other types of unwanted behavior √ √ √

Shuts down the revolving door of fraudsters / abusers

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Protects site reputation and increases players’ trust and satisfaction

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Increases efficiency and reduces operational costs of screening for abusers

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Can share evidence of known abusers among gaming sites and beyond

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Helps with existing and emerging regulatory requirements

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Fraudsters are typically repeat offenders, who use multiple online profiles to target multiple gaming sites. Shutting down an abuser’s account doesn’t stop the activity. Online fraudsters simply set up a new account using a new identity and continue their abusive behavior.

iovation ReputationManager is a proven real-time fraud and abuse management solution that lets online gaming sites augment their player management system with risk management without sacrificing operational efficiency, scalability, or profit margins. iovation focuses on the fraudsters’ device as the nexus of online activities and exposes them by accurately identifying devices across online gaming sites and beyond. When abusive behavior is detected against a device or profiles/account on a site, all associated devices and profiles on that site can be quickly exposed and flagged at once to prevent repeat offences. The information can be shared with other subscribing sites for proactive protection against cyber criminals.

The table below highlights the benefits cited most often by existing iovation customers:

solution: iovation reputationmanager™

Page 3: Online Gaming Industry: Blending Player & Risk Management

How iovation ReputationManager™ works

At member login and/or prior to any high risk interaction, the subscribing online gaming site requests the reputation of a device by providing member profile/account and device identifiers without any personally identifiable information (PII).

iovation ReputationManager associates the profile/account ID and the device information and sends the information to the Device Reputation AuthorityTM (DRA) platform for analysis.

When a subscriber has identified fraudulent activity, an account is flagged with evidence in the database. iovation exposes associations between devices and profiles/accounts to stop repeat offenders and potential fraud or abuse.

Once a subscriber is active and placing evidence in the iovation system, they have the option to immediately act upon other subscribers’ evidence.

Subscribers can now protect their online gaming sites and valued members by making decisions based on their own criteria for allowing or rejecting member interactions.

As online gaming continues to grow worldwide, so does the sophistication of the fraudsters trying to defraud them. Combining iovation’s device reputation service with other fraud managment techniques can augment gaming sites’ existing fraud detection solution, providing a stronger, multi-layered defense to combat sophisticated forms of online fraud and abuse.

Legal Notice: ©2009 All rights reserved. All productor service names mentioned herein are the trademarks of iovation or their respective owners.

DS200901/01

111 SW Fifth Avenue, Suite 3200 Portland, Oregon 97204 +1 503.224.6010 www.iovation.com

Sales inquiries: [email protected]

For more information and a demonstration on how iovation ReputationManager can help you combat online fraud and abuse within your business, please email [email protected], call +1 (503) 224-6010 or visit www.iovation.com.