Publication date: April 8, 2024
Video game fraud on the rise, new report warns
By Movieguide® Contributor
A new report from the Consumer Financial Protection Bureau (CFPB) has warned gamers about the rise in video game fraud and the lack of protection from the companies that host these games.
Video game scams have been around for as long as online games have provided scammers with a means to scam people. But while in the past, losses to scams may have been pennies, with the rising value of virtual assets and billions of dollars converted into virtual currency each year, video game scams are now It's starting to become just as lucrative as fraud. Real world counterpart.
“Americans of all ages exchange billions of dollars into currencies used in virtual reality and gaming platforms,” said CFPB Director Rohit Chopra. “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 report, Americans spent about $57 billion on gaming in 2023. This spending includes purchasing hardware and software and performing in-game transactions. Because this level of money is converted into virtual assets, games and platforms closely resemble real-world financial markets.
Unfortunately, because these activities take place in virtual markets, gaming companies are not currently required to provide players with the same level of financial protection that real banking institutions provide.
“Consumers report that they have little recourse from game companies when they suffer losses, and game publishers argue that they have no obligation to compensate players for financial losses,” the report explains. are doing.
The current system generates tens of billions of dollars annually, and gaming companies are unlikely to change their approach to asset trading unless required by law. Despite the increasing frequency of scams, there are currently no laws in place to better protect players, leaving it up to players to avoid being scammed.
Movieguide® previously reported on how video games replicate real-life markets:
Modern video games often have complex marketplaces that can teach players virtual lessons that can be applied to real-world economies.
“They are in very good agreement,” said researcher Dmitri Williams. “When people have the same incentives, people feel the same way about money in games as they feel about money in the real world.”
This can create an environment that gives rise to all sorts of economic conditions, both good and bad, that are true to real-world markets.
For example, in 2009, players of the video game Eve Online experienced a bank run. The depositor was desperate to withdraw his ISK, the game's virtual currency. Since this institution called Ebank was a side project founded by players, there was no deposit insurance, so many players lost their ISK due to execution.
Now more than ever, we are exposed to the dark side of media, film, and television. Movieguide® has been fighting back to promote uplifting, positive content within Hollywood for nearly 40 years. We are proud to have worked with some of the top players in the industry to influence and redeem Yes entertainment. Still, you are the most influential person in Hollywood. The person who sees it.
There is power in what you hear, see, and read. Movieguide® wants to provide resources to empower the good and the beautiful. But we can't do it alone. We need your support.
You can make a difference for just $7. It only takes a moment. If you are able, please consider supporting our ministry with a monthly gift. thank you.
Movieguide® is a 501c3 and all donations are tax deductible.
Now more than ever, we are exposed to the dark side of media, film, and television. Movieguide® has been fighting back to promote uplifting, positive content within Hollywood for nearly 40 years. We are proud to have worked with some of the top players in the industry to influence and redeem Yes entertainment. Still, you are the most influential person in Hollywood. The person who sees it.
There is power in what you hear, see, and read. Movieguide® wants to provide resources to empower the good and the beautiful. But we can't do it alone. We need your support.
You can make a difference for just $7. It only takes a moment. If you are able, please consider supporting our ministry with a monthly gift. thank you.
Movieguide® is a 501c3 and all donations are tax deductible.
