Unauthorised Use of a Card

Did you know that if someone uses your card without explicit permission – even for a small purchase – it is considered fraud? This includes a child using their parent or carer’s bank card. The card user could face criminal and financial liability.

What Are Loot Boxes?

Loot boxes are virtual treasure chests found in video games, offering randomly selected items. Players purchase these boxes with real money without knowing if they will receive a desirable item. Loot boxes are like gambling, as the outcome is uncertain. They are highly lucrative, contributing between 11% and one third of annual sales for major gaming companies. In 2020, it was estimated that over £700 million was spent on loot boxes in the UK. Games such as FIFA, Overwatch and Call of Duty have all used loot boxes. 

The Cost of Online Gaming

Gaming companies often employ strategies to encourage spending, including:

  • Virtual Currencies: Dissociate in-game spending from real money, making it easier to spend.
  • Unusual Exchange Rates: Make it harder to track how much money is being spent.
  • Easy Payment Processes: Reduce barriers to making purchases.
  • Embedded Inconvenience: Encourage spending on convenience-enhancing items.
  • Dynamic Pricing: Offer lower prices to capture buyers who might be unwilling to pay higher prices.

Managing Gaming Costs

To better manage spending on online gaming, some people argue that gaming companies could:

  1. Implement better regulation of in-game purchases.
  2. Use real currency to display the cost.
  3. Enhance access to and promotion of parental controls.
  4. Enforce stricter age requirements for making purchases.