Before i can withdraw money it asks to send them picture of my debit card with showing first 4 and last 4 digits of front 16. Is it secure to provide them?
Although it is strange, there is little risk.
The first four numbers are just the card type (Visa, Master, etc.), and the last four alone don't give them much - there are still 8 digits missing that they do not have.
There is nothing much they can do with that info, especially without the PIN and the CCV, so as I said, little risk.
Maybe they are using this to verify that you are the right person - you probably used that card originally to put money in for the gaming. That would be a way for them to authenticate you.
Sounds questionable to me. If there is no way around this I would suggest opening a new account with only the minimum balance necessary and sending them the debit card associated with that account. If anything goes wrong then the amount of damage they can do will be limited. I would definitely be looking for other options though. Maybe they can just mail you a check or something?
I don't see a way that this would make matters worse than just giving them the credit card info... Except that it would make abusing the card easier at some other site (or the bank) if they have a similar (unreasonably weak) security-by-photo test.
Still, I'd strongly recommend you use a separate card for this so you can cancel it without disrupting your other credit card uses.
(Actually I'd strongly recommend not doing business with folks who have already demonstrated questionable ethics, but you seem to have made that decision.)
Believe it or not, what they're asking you is not as unusual as you might think. Our company sells a tremendous amount of expensive merchandise over the Internet, and whenever there's something odd or suspicious about the transaction, we may ask the customer to provide a picture of the card simply to prove they have physical possession of it. This is more reassurance to us (to the extent that's possible) that the customer isn't using a stolen card number to order stuff.
It doesn't help too much, but if the charge is disputed, at least we have something to show we made reasonable efforts to verify the ownership of the card.
I think it's pretty thin, but that's what my employer does.