Underdog partners with Socure for global bank-level security for KYC controls 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.

This can look like bonus hunters creating multiple accounts to take advantage of promotions, to more serious scenarios such as identity theft or the use of synthetic identities to establish valid accounts on the platform. These platforms also contend with attempts to obtain unauthorized access to players’ accounts through phishing, keylogging, and credential stuffing.

In a highly competitive environment, a seamless user experience is paramount — especially when it comes to onboarding and depositing or withdrawing funds. Players want instant options that give them the quickest outcome without any extra hurdles or friction.

Underdog, now the fourth most downloaded sports gaming app in the U.S., was challenged by the manual review processes that led to long waiting times for players.

It needed a strategic partner to help balance automation and manual intervention, and create global-bank level security for its KYC controls — all so it can onboard more good users faster.

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 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

• Established “global bank- level” security for KYC that exceeds industry standards

• Reduced false positives in fraud detection

• Balanced automation with expert human intervention

• Improved efficiency in handling high-traffic periods like the NFL season

• Strengthened overall platform integrity and player safety

The challenge Like most in the industry, 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 or someone within that household (hence family fraud) making a transaction and then disputing it later.

During the prior NFL season, the Underdog team was forced to manually review far too many accounts, which resulted 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 provide the best experience to its player base, built on a solid risk framework and guided by evolving models and recommendations.

“Data plays a crucial role as it provides us with undisputable, irrefutable hard evidence. Every decision that Underdog makes is based on data,” said Karl Gambin, VP of Fraud and Payments. “We tend to stay away from old- fashioned models of doing business and strive to be innovative and unique, which is very evident in our product offering.”

During peak season, Underdog is constantly monitoring the efficiency and effectiveness of its proprietary fraud models in addition to third-party provided services, including its partnership with Socure.

How Socure helped Underdog continually analyzes logic in relation to observed patterns and makes changes as the season progresses.

By partnering with Socure, Underdog implemented global bank-level security for its Know Your Customer (KYC) controls that is unsurpassed by the other large operators in the sector, ensuring a secure, seamless experience for its rapidly growing user base.

Underdog’s KYC process adopts the latest risk models together with several composite triggers from Socure and Socure’s Document Verification solution to ensure that they are letting in good players and blocking more fraud before it occurs.

300% Reduction in manual reviews from 20% to just 5%

10% Higher conversion rates during high traffic periods

97% Auto-decisioning with ID document verification

Underdog prides itself by going above and beyond the regulatory requirements, adopting a player-centric approach where the safety and integrity of the platform are constantly at the forefront.

“We are constantly ensuring that we’re leveraging the latest technology, risk models and recommendations from Socure, while improving our internal models through data and ensuring that we’re hiring and retaining top talent in the fraud field and across the organization,” said Gambin.

The results Through its partnership with Socure, Underdog achieved remarkable improvements in their fraud prevention capabilities:

Established bank-level security Implemented KYC controls that exceed industry standards, unsurpassed by the other large operators in the sector.

Efficient fraud detection Significantly reduced false positives, enabling more accurate identification of genuine users while effectively blocking fraudulent activities.

Streamlined operations Reduced the number of manual reviews from 20% down to just the 5% that actually need review, dramatically improving operational efficiency and user onboarding speed.

Enhanced user experience Successfully balanced robust security measures with a seamless user experience, with 90% successful ID document photo uploads after the first capture and overall 10% higher conversion rates during high-traffic periods like the NFL season kickoff.

Proactive fraud prevention Improved ability to block fraud before it occurs, strengthening overall platform integrity and player trust.

By implementing these strategies, Underdog has successfully positioned itself as a leader in fraud prevention within the sports gaming industry, ensuring a secure and seamless experience for its rapidly growing user base.

Underdog prides itself on

going above and beyond

regulatory requirements,

adopting a player-centric

approach where the safety

and integrity of the platform

are constantly at the

forefront. Our partnership

with Socure has been

instrumental in achieving

this goal.”

‘‘ Karl Gambin VP of Fraud and Payments Underdog

About Socure

Socure is the leading provider of digital identity verification and fraud solutions. Its AI and predictive analytics platform applies artificial intelligence and machine learning techniques with trusted online and offline data intelligence to verify identities in real-time. Socure is the only vertically integrated identity verification and fraud prevention platform with both IAL- 2 and FedRAMP Moderate certifications, delivering advanced levels of assurance and the highest standards for security and compliance.The company has more than 2,000 customers across the financial services, government, gaming, healthcare, telecom, and e-commerce industries, i7cluding four of the five top banks, the top credit bureau and more than 400 fintechs. Organizations including Chime, SoFi, Robinhood, Gusto, Public, Poshmark, Stash, DraftKings, and the State of California trust Socure for accurate and inclusive identity verification and fraud prevention. Learn more at socure.com.

7714957536-01© Socure 2024, Inc. All rights reserved.

Moving forward By partnering with Socure, Underdog enhanced its approach to fraud prevention, setting a new benchmark in the sports gaming industry. This collaboration not only solved Underdog’s immediate challenges but also positioned the company for sustainable growth, ensuring that as its user base expands, its security measures can seamlessly scale to meet new demands.

See how Socure helps online gaming platforms navigate fraud.

Learn more →

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