A new analysis from the CFPB highlights the hazards associated with financial transactions in video games.

A recent study from the US Consumer Financial Protection Bureau (CFPB) emphasizes the dangers of making financial transactions while playing online video games and in other virtual settings.

Travon Stracke

April 09, 2024

1Min Read

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Payments

The latest analysis, titled "Banking in Video Games and Virtual Worlds," shows that in 2023, American gamers spent around to $57 billion on in-game purchases, software, and hardware.

Real money is frequently traded by gamers for virtual currency or other in-game items. These holdings are regularly bought, sold, or exchanged in online markets, allowing game companies to simulate real-world financial transactions.

The analysis has shown a number of hazards associated with the increase in in-game assets. Notably, phishing attempts, frauds, and account theft have increased. According to the research, when players lose, they have "little recourse" against gaming corporations since these businesses frequently claim they have no obligation to compensate customers for their losses.

This happens because gaming providers frequently prioritize a "buyer beware" approach, in contrast to established financial institutions like banks and payment systems that normally give consumer safeguards.

The CFPB also draws attention to the privacy dangers associated with gaming companies' capacity to gather enormous volumes of behavioral and personal data. Gaming businesses are now able to gather data on players, including their spending limits and purchase history, track users' whereabouts, and even access their health and medical records.

Gamers "may be harmed when their data is sold, bought, and traded between companies, including for purposes outside of gameplay," the CFPB says as a result of this potential danger.

In closing, the government agency states that it will keep an eye on "evolving gaming markets" and the "costs and risks" that the gaming community faces.

This year, the CFPB has been quite busy thus far. The regulatory authority put into effect a new rule last month that prohibits credit card issuers in the US that have more than a million active accounts from charging late fees that are more than $8.