Why Age Verification is Essential on Gaming Platforms!

Age Verification Service ‘ID check’ for Protecting Minors
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Feb 07, 2025
Why Age Verification is Essential on Gaming Platforms!

Age Verification Cases on Gaming Platforms

Recently, the U.S. Federal Trade Commission (FTC) alleged that Cognosphere violated the Children's Online Privacy Protection Act (COPPA) and misled users regarding in-game transaction costs. Cognosphere conducted marketing targeting children under the age of 13 and collected personal information without parental consent, which constitutes a violation of COPPA.

Many consumers expressed strong dissatisfaction with Cognosphere's marketing efforts directed at children and the collection of their personal information. In particular, there was criticism over the fact that children and adolescents were encouraged to spend significant amounts of money in pursuit of items that had a low probability of winning. According to the FTC, Cognosphere led children to use virtual currency to purchase in-game items, which caused confusion among consumers.

At the same time, consumers raised concerns about Cognosphere's lack of transparency. The FTC's investigation found that the company collected children's personal data without parental consent, significantly undermining consumer trust. Many consumers felt that such actions were against ethical business standards.

The U.S. Federal Trade Commission asserted that Cognosphere must rectify false information regarding pricing and services, including banning the sale of loot boxes to children under the age of 16 without parental consent.

As a result, Cognosphere was required to pay $20 million and announced plans to implement new age restrictions and parental consent protection measures for players. Additionally, the company stated that it would increase the transparency of in-game disclosures regarding virtual currency and rewards.

Some consumers viewed the FTC's actions as an important step toward child protection, arguing that strong legal measures are necessary to prevent similar incidents in the future. They believed that companies should take greater responsibility for their marketing practices directed at children.

age verification
age verification

ARGOS ID check: Strengthening Children's Privacy Protection and Blocking Illegal Access

The Cognosphere case highlights the importance of child protection, corporate transparency, and the severe consequences that companies may face in terms of costs and trust if they fail to comply with legal regulations.

The FTC's actions serve as a warning about the financial and reputational losses that companies may suffer if they disregard legal requirements. Therefore, it is crucial for businesses to thoroughly understand and comply with relevant laws.

So, how can companies ensure compliance with legal regulations while providing safe services?

How ARGOS ID check (eKYC) Contributes to Child Protection

ARGOS ID check can contribute to child protection in various ways. With remote identity verification, ID check enables secure identification of children. ARGOS helps prevent children from accessing online services without parental consent, thereby blocking unauthorized collection of their personal data. Furthermore, when minors attempt to register for a service, ARGOS ID verification ensures that parental or guardian consent is confirmed.

First, ARGOS ID check uses AI to detect cases of identity forgery, preventing identity theft attempts in advance. By maintaining a strict one-person, one-account principle, it enhances security while ensuring compliance with regulatory requirements and preventing money laundering within businesses.

ID check is highly effective in detecting fraud and illegal activities by leveraging AI and machine learning. When applied to services targeting children, this technology helps prevent the misuse of children's personal information. For instance, it can swiftly identify fraudulent accounts or fake profiles, ensuring better protection for children.

A Online Identity Verification Solution Ensuring Safe Processing and Storage of Children's Personal Information

ARGOS strengthens the protection of minors' personal information by incorporating an age field. To comply with not only COPPA but also GDPR regulations, it deletes identifiable personal data and is designed to retain only the minimum necessary information, adhering to GDPR’s data minimization principle while safeguarding individual privacy.

This ensures that children's personal information is processed and stored securely. By complying with these regulations, businesses can protect children's rights and fulfill their legal responsibilities.

gaming platforms
gaming platforms

ARGOS Identity Verification: Designed for Gaming Platforms That Require Higher Levels of Security

ARGOS utilizes a self-learning system tailored to each customer’s needs, allowing it to study fraudulent user behavior and build automated detection models based on this data. Through this system, ARGOS provides customized AI models that meet the specific security requirements of each client. Additionally, the more ID verifications that take place, the more feedback the model receives, allowing it to evolve and better adapt to the unique user base of each platform.

Identity verification offers the flexibility for customers to design identity verification steps according to their preferences. For example, gaming platforms may require a higher level of security compared to general users.

ID check allows for customization of the verification process to meet these needs, optimizing the identity verification experience through machine learning analysis of collected data. Clients can easily build tailored solutions that meet various verification requirements, enhancing both operational efficiency and security.

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