As the video gaming industry has grown in recent years, predatory actors have found ways to target online gamers on dedicated platforms.
According to the Consumer Finance Protection Bureau (CFPB), American consumers spent nearly $57 billion on gaming in 2023, which includes hardware, software and in-game transactions, which have the potential to convert dollars to virtual currencies or other gaming assets. This creates opportunities for consumers, including Veterans, to experience possible fraudulent activities and scams.
The most common types of gaming fraud that affect Veterans
- Credit card fraud: Credit card details are stolen and used illegally.
- Account hacking and takeovers: Hackers gain access to financial information, personal details and contact lists.
- Affiliate fraud: Gamers paying out rewards to non-existent players.
Data Collection Concerns in Online Gaming
Online gaming markets are also a hotbed for data collection. Occasionally, players actively choose to provide their personal data to set up an account, such as name, birth date, location and payment information. In other situations, players may not be aware that “the data collected by video games can be mined for patterns and statistical relationships to infer additional personal information” (Kröger, et al., 2023). This can appear as targeted ads that highlight products specific to player interests. Other times, this information is used by predatory actors in ways that players don’t anticipate or realize they are authorizing.
The Federal Trade Commission (FTC) and CFPB reported that, in most cases, gaming companies provide minimal support when users experience financial harm or risks. These risks include hacking attempts, account theft, scams, unauthorized transactions, and the loss of in-game assets. Gaming companies often put the onus of fraud prevention on the individual players, initially warning them to beware of scams and phishing attempts but doing little to assist when fraud does occur.
What you can do
Although players are not able to prevent all fraudulent behavior and data privacy issues on their own, there are some steps that can be taken to protect yourself:
- Sign up for Multifactor Authentication (MFA) to prevent account takeovers or theft.
- Confirm the validity of any sites that you are making any gaming, hardware, software or mobile app purchases on. Check company and product reviews, national databases, and assess URL/browsing information to ensure the purchase is legitimate.
- Read the fine print of how your personal data is being used and shared by the gaming platform.
- Contact CFPB or FTC if you are a victim of fraudulent activities.
Additional Resources
For more information regarding the do’s and don’ts of gaming fraud prevention, read the VSAFE Gaming Fraud Prevention One Pager.
To protect yourself, your loved ones, and children from gaming fraud, here are some additional helpful resources:
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