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Can Operators Securely Store Sensitive Data?
By Shane Addinall Sep 01, 2022 TechnologyWith regulators raising the bar for customer identification requirements, operators must adopt excellent security protocols and securely store player information. Can gambling companies rise to the occasion?It is commonplace for gamblers to complete certain identity checks before a licensed provider allows them to deposit or play at their chosen remote gambling platform. Gambling authorities around the globe must enforce specific international anti-money laundering regulations while also maintaining their jurisdiction’s financial laws.
Beyond their responsibility in the fight against money laundering and terrorism funding, operators need to ensure that customers are who they say they are. Talks of affordability checks for UK gamblers surface once again as the white paper release looms and data experts warn of the challenges this presents.
Operators can circumvent data breaches without compromising the quality of information required. But, are gambling operators geared for the task?
The Risk and Challenge
In a recent media interview, the founder of an ID-tech company voiced his concerns about operators’ readiness for the process of more intense Know Your Customer (KYC) checks. Luciditi founder, Philip Young, warns that large data breaches face those providers who have inadequate systems.
When consumers share their sensitive information, like identity documents and proof of residency, with any online service, there is a level of accepted risk involved. For the customer and service provider, it includes the risk of data breaches through hacking, but the organisation also faces the risk of bad actors slipping through the cracks if there are systematic faults.
This challenge is not unique to the remote gambling industry, but a universal online problem. Savvy consumers choose responsible and reputable providers who they can trust with their data, while opportunists seek platforms with holes in their systems. According to Young, the only way to circumvent these gaps is to design and implement agile data processing with highly specific storage protocols.
No Need to Break the Mould
The advantage of technology advancing at the speed of light is that somewhere, someone has a solution for the challenge. This rings true for data security, especially in 2022. Blockchain technology and AI are the more recent solutions to data security, with the latter being more widely adopted. The answer to the challenge of duplicate accounts for players lies with AI, and the technology is already pervasive in AML protocols.
Beyond these advanced technologies, tried and tested data protection strategies from other industries like finance and healthcare can lead the way. Young explains that there is no need for revolutionary technology if gambling operators learn from these industries and adopt the same level of duty of care.
When the operator’s chain of receiving, processing, and storing personal data adopt the aforementioned technologies and attitudes, it minimises the probability of a system breach and the impact on players with data exposure.
The Future of Data Security
If regulators push for the necessity of increased personal data, further security systems like a single-view profile become paramount. Blockchain technology is one of the most trustworthy security systems available currently and addresses vulnerabilities. This is not a plug-and-play solution and will take time to develop and implement.
While lawmakers and data specialists work at finding the best way forward, operators who value their customers and seek loyalty will adopt the right technology available right now.
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