Underdog Partners with Socure for Global Bank-Level Security for KYC Controls

Introduction

Now the fourth most downloaded sports gaming app in the U.S., Underdog implemented Know Your Customer (KYC) controls that exceed industry standards, unsurpassed by the other large operators in the sector. For online gaming platforms, high-volume periods like the NFL season can bring a rise in fraudulent activity.

Challenges

• Attempted fraudulent activities: Ranging from bonus hunters to identity theft.
• Account takeover attempts: Through phishing, keylogging, and credential stuffing.
• Attempted friendly fraud.
• Manual review processes: Leading to longer waiting times for players and requiring additional resources to handle the volume.

Solution Highlights

• Partnered with Socure to implement advanced KYC processes, risk models, and document verification.
• Developed proprietary fraud models complemented by Socure’s services.

Results

• Reduced false positives in fraud detection.
• Established “global bank-level” security for KYC that exceeds industry standards.
• Strengthened overall platform integrity and player safety.

Key Metrics

• Reduction in manual reviews: From 20% to just 5%.
• Auto-decisioning with ID document verification: Achieving rapid decisions.

The Challenge

The most common fraud Underdog experienced was friendly fraud. Where third-party fraud involves using a cardholder’s information without their consent, friendly fraud involves the actual cardholder disputing a transaction after it is made.

During the prior NFL season, the Underdog team was forced to manually review many accounts, resulting in longer waiting times for its players and additional headcount to handle the volume. To address these challenges, Underdog leverages internal and third-party data and analytics to enhance the player experience, guided by evolving models and recommendations.

Karl Gambin, VP of Fraud and Payments, noted, “Data plays a crucial role as it provides us with undisputable, irrefutable hard evidence. Every decision that Underdog makes is based on data.” Underdog constantly monitors the efficiency of its proprietary fraud models alongside third-party services, including its partnership with Socure.

How Socure Helped

By partnering with Socure, Underdog implemented global bank-level security for its KYC controls, ensuring a secure, seamless experience for its rapidly growing user base.

Quote from Karl Gambin

Underdog prides itself on going above and beyond regulatory requirements, adopting a player-centric approach where safety and integrity are at the forefront. “We ensure we’re leveraging the latest technology and risk models from Socure, while improving our internal models through data and ensuring that we’re hiring and retaining top talent,” Gambin added.

Results of the Partnership

Through its collaboration with Socure, Underdog achieved significant improvements:

• Established bank-level security and implemented KYC controls that exceed industry standards.
• Efficient fraud detection: Significantly reduced false positives, enabling more accurate user identification while blocking fraudulent activities.
• Operational efficiency: Reduced manual reviews from 20% to just 5%.
• Enhanced user experience: Achieved high success rates in ID verification.

Moving Forward

By partnering with Socure, Underdog improved its approach to fraud prevention, setting a new benchmark in the sports gaming industry. This collaboration addressed Underdog’s immediate challenges while positioning the company for sustainable growth as its user base expands.