Why Online Gambling Websites Require So Much Documentation

A lot of people balk at the idea that online gambling websites require various forms of documentation faxed in - often at the time of payout requests.  Some would argue that such documentation needs to be requested during the depositing stage.  The operators contend that the document verification is most vital at the time of the payout process.

Some businesses require - not only an individual's driver's license - but also a few months worth of utility bills or cable bills.

23-year-old Kyle McGarry illustrates the rationale behind this process.

Greater Sudbury Police are asking for the public's assistance in locating McGarry is wanted for theft, five counts of fraudulent use of a credit card and breach of probation.

Mr. McGarry is alleged to have used a stolen credit card over a 48 hour period to gamble online.

Gambling911.com's Payton O'Brien advises caution when sending personal documents via the Internet (scanned) or through fax.

"It is common practice to submit credit card information via the Net but make sure you are sending to an online gambling website that is endorsed by the likes of a Gambling911.com," she said.  "I know this might sound like an infomercial but we do not do business with ‘fly by night' operations."

While passports are often requested, one's state issued driver's license is usually sufficient and safer.

"I am not really keen on submitting copies of a passport via the Net or fax.  Passport theft is a pretty lucrative business and there is a stronger likelihood that country issued passports can be used for identity theft acts."

Henry Bagdasarian, a certified expert in information security and internal audit with many years of experience with major international companies, explains:

"Although, passports are typically stolen, they could also be sold or given as a gift to a family member or a friend to help them out. In all cases, the purpose remains the same which is to allow for fake identification and travel to places where such passports are allowed to take their rightful owners."

The perpetrators need not get their hands on the original passport. 

The Daily Mail's Sue Reid reported on just how easy passport identity theft can be:

"A shocking security gap allows the personal details and photograph in any electronic passport to be copied from the outside of the envelope in which it is delivered to homes.

"The passport holder is none the wiser when it arrives because the white envelope has not been tampered with or opened.

"Using a simple gadget built from parts bought on the Internet, it took the Mail less than four hours to copy the details from one passport."

Now imagine sending a copy via the Net, just how easy to obtain such details.

Unlike a credit card, where unauthorized usage can be recognized almost immediately, fraudulent use of a passport likely will not be.

O'Brien also had this closing advise:  "The easiest way to obtain someone's identity is through their social security number.  No reputable online gambling website requires this information."

It should be noted that the majority of reputable sites also utilize some of the best verification companies in the business.  So while Mr. McGarry apparently got away with using someone else's credit card to gamble online, odds are he found a business that is less reputable. 

Jagajeet Chiba, Gambling911.com