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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I was given an Apple Card. I use credit cards that pay the user a percentage of their purchases monthly. I then pay my bill off each month therefore causing the card issuer to lose 2-3% monthly on my transactions. I first received my card at the end of March 2023. The first charge on my card was on 5Mar2023, three days before I applied for the card. I complained and the charges were removed. I never used the card and in May 2023 I received a bill for $511.50 with a credit for $10.23. I called Goldman Sachs and the charges were removed, however, I was told I would have to contact the people I received the credits from in order to return them. I informed GS since there was no transaction obtained by me there was no way I would take responsibility for returning money, it was your (meaning Apple Card’s responsibility) to return the money. In October 2023 I received a bill for $10.23 from Apple Card. I called Apple Card (the number on the card) and asked how a $10.23 credit could end up a $10.23 debit. I got no answer. I sent 2 letters one on October 17th and one on October 23rd both denying the bill. In December I received notice my credit scores had dropped because of failing to pay a bill and the credit scores had dropped by 100 points. On January 2, 2024, I filed suit in Monterey County California for Defamation, Intention Infliction of Emotional Distress, Negligence, Negligence Per Se, and Injunctive Relief. Goldman Sachs has started negotiations as I intend to pursue a court resolution because a jury will provide a greater return that anything they will negotiation for. I also informed the 3 credit reporting agencies that I had instituted a lawsuit. My credit scores have now returned to where they were as we await trial. BTW, I am an attorney.