Report: Online video game marketplaces risk to players’ financial, personal information

A new report from the Consumer Financial Protection Bureau (CFPB) has found that online video games and virtual worlds could be putting players financial and personal information at risk.

The report, Banking in Video Games and Virtual Worlds, said the gaming and virtual platforms increasingly resemble traditional banking and payment systems, but that consumers are reporting being harmed by scams or theft on the platforms and not receiving the protections they would get under federal law. The bureau said it would be monitoring markets where financial products and services are offered to ensure compliance with federal protection laws.

“Americans of all ages are converting billions of dollars into currencies used on virtual reality and gaming platforms,” CFPB Director Rohit Chopra said. “As more banking and payments activity takes place in video games and virtual worlds, the CFPB is looking at ways to protect consumers from fraud and scams.”

According to the report, America consumers spent nearly $57 billion on gaming in 2023, including on hardware, software and in-game transactions. Converted assets, like virtual currencies or other gaming assets, are often bought, sold or traded in virtual markets that let gaming companies replicate everyday activities online.

The report found that gaming products and services resemble conventional financial products but that gaming companies provide little customer support when their users experience financial harm. Additionally, the CFPB said, the companies are collecting and storing large amounts of player personal and behavioral data such as their financial data, purchase history and spending thresholds. Platforms are also tracking players’ location data to generate an accurate portrait of players’ daily routines, as well as their health and medical status.

The bureau cautioned that the advent of virtual- and mixed-reality gaming may allow gaming companies to gather biometric data like iris scans, eye movement, pupil response, and gait analysis from headsets used in gaming.

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