clock: New report details financial risks of some video games
Parents Michael and Jennifer Ferri spoke out and urged other parents to learn that their 8-year-old son had accidentally charged $4,000 on his credit card while playing video games. is issuing a warning.
“I mean, I lost my mind,” Jennifer Ferri told Good Morning America after learning of her son Joey's unexpected charges.
After several months, Ferris was finally able to receive a full refund, but said their experience was a precautionary measure.
“I think sometimes people get confused about what is real money and what is fake money,” Michael Ferri said.
MORE: Mother shares lessons she learned after son spent more than $800 on Roblox
More than 200 million Americans, and nearly three in four children under 18, play video games on a regular basis, according to a July 2023 report from the Entertainment Software Association, which represents the video game industry. Masu. According to the Consumer Financial Protection Bureau, the government agency responsible for protecting Americans' finances, an estimated $57 billion is spent on video games each year.
Now, the CFPB warns in a new report that Americans may not have the same protections online and in the virtual world as they do in the real world.
“We want to make sure that it doesn't become a breeding ground for fraud, fraud and abuse,” CFPB Director Rohit Chopra told ABC News' Elizabeth Schultz.
Read more: Mother warns parents after son charged $16,000 for in-app game purchases
CFPB report highlights how using virtual currency to purchase coveted in-game items such as vehicles, weapons, and characters can put players' funds at risk. .
“What is pretty clear is that Financial incentives are meant to help players spend as much as possible,” Chopra said.
According to the CFPB, “gaming accounts often lack the security and protection of traditional bank accounts” and can be vulnerable to hacking, account theft, fraud, and fraudulent transactions. .
“If there's a fraudulent charge on your credit card, we can fight it. What we often see with these gaming platforms is they just point fingers or they don't actually hold themselves accountable.” said Chopra.
“I don't think you should think of this as a traditional video game. It's an immersive world.” [with] own economy.But what we want to check is [of] It's not just a way to get around existing rules,” Chopra added.
In a statement, the Entertainment Software Association told GMA: “We are committed to providing players and parents with transparent information and tools to make the choices that are right for them and their families. This includes features such as managing, restricting, and blocking in-game purchases.” Communicate with other players and manage when and for how long your kids can play. ”
Parents can turn on parental controls for video games to block or limit the money their children spend while playing video games. Parents may also consider linking their child's account to a prepaid gift card instead of a credit or debit card.
