The Consumer Financial Protection Bureau (CFPB) monitors video games and virtual worlds to ensure they comply with the federal Consumer Financial Protection Act.
The oversight comes as the CFPB receives more complaints from consumers as a growing number of these platforms add banking options and payments, the agency said Thursday (April 4). stated in a press release.
“Americans of all ages exchange billions of dollars into currencies used in virtual reality and gaming platforms,” CFPB Director Rohit Chopra said in a release. “As more banking and payment activities take place in video games and virtual worlds, the CFPB is considering ways to protect consumers from scams and scams.”
According to the release, as games and virtual worlds allow players to store and transfer in-game currency, virtual items, and other valuable assets, their products and services increasingly resemble traditional financial products. It includes details of a report on the subject published Thursday. C.F.P.B.
However, the companies claim they are not obligated to compensate players for their financial losses, the release states. Consumers have complained to the CFPB that they have little recourse if they suffer losses due to fraud, phishing or account theft.
Additionally, the release states that gaming companies collect large amounts of data about players. You can collect behavioral details such as financial data, personal history, and location data. With the advent of virtual reality and mixed reality headsets, gaming companies may also collect biometric data, which raises questions about medical privacy.
Because existing consumer law applies to banking and payment systems that facilitate the storage and exchange of assets, the CFPB has The release states that they are monitoring the situation.
“The Consumer Financial Protection Bureau is aware of how these worlds can become a haven for fraud, fraud, financial loss, and unexpected purchases that can deplete a family's real-world financial assets.'' We are working to understand this,” Chopra said in a statement accompanying the report. release.
The Federal Trade Commission (FTC) reported in February that consumers lost a record $10 billion to fraud in 2023 as digital tools made it easier for scammers to find their targets.
The number of consumers who reported fraud to the FTC in 2023 was about the same as in 2022, but the amount of reported fraud losses increased by 14%, the agency said.
