The US Government Aims to Shield Gamers from Virtual Currency Fraud

The Consumer Financial Protection Bureau, a U.S. agency dedicated to shielding consumers from shady banking practices, unveiled a plan last Friday aimed at safeguarding Roblox users from scams and hacks. They’re also eager to hear from gamers who spend virtual currency, seeking insights into challenges faced, especially how companies respond when scams are reported.

Now, this proposal isn’t about enacting a new law. It actually modernizes existing regulations from the Electronic Fund Transfer Act. Back in 1978, under President Jimmy Carter, this Act was launched to guard consumers against unwanted debit transactions with the rise of ATMs. What the CFPB wants now is to tweak this rule to fit certain gaming platforms, with Roblox in the spotlight.

In a recent blog post, the agency highlighted how rapidly gaming currencies and accounts are morphing, likening them more and more to banking and payment systems.

As this transition has taken place, both gamers and their parents have reported a slew of issues. These range from difficulties in converting real money to in-game currency to unauthorized transactions, account hacks, takeovers, and straight-up scams. Many have shared their frustrating experiences, noting the lack of adequate support from gaming companies or financial institutions. Refund attempts often hit a wall, with users facing account suspensions when seeking refunds through their banks. On top of that, they find themselves entangled in endless loops with AI-driven customer service when all they want is a clear answer.

The proposed changes wouldn’t touch every game out there with in-game currencies. Instead, they’re zooming in on those with virtual marketplaces that thrive on user monetization, like Roblox. To qualify, the platform must feature at least one of the following: transactions for goods or services across multiple sellers, the ability to withdraw funds or get cash, or support for person-to-person transfers.

In the world of Roblox, players can buy a currency known as Robux to snag in-game perks and cosmetics from others. Developers on the platform earn a share of the Robux spent and can convert them into U.S. dollars via the Developer Exchange Program. Unlike Roblox, a game like Fortnite might not be affected, as it doesn’t allow users to resell cosmetic items or transfer V-bucks between accounts.