CONSUMER ALERT: The New York Department of State’s Division of Consumer Protection Warns Consumers of Data Privacy and Financial Risks with Online Gaming

The New York Department of State’s Division of Consumer Protection is providing consumers tips to protect their privacy and finances while playing video games. According to the Pew Research Center, 85% of teens nationwide play video games and 41% say they game daily. In the past, most video games were sold for one-time purchases as physical copies. Today, the market has shifted towards the sale of additional virtual items for small fees to use within games consumers already own or are free to play. These virtual items can include in-game currency, extra levels, new characters, “loot boxes,” which are full of mystery virtual prizes, and character special accessories or features. Nationwide, consumers now spend billions of U.S. dollars annually for these virtual items in video games and digital worlds.

“Video games are becoming more popular, more advanced and more convenient to play,” said Secretary of State Walter T. Mosley. “With games available to people of all ages on almost all digital devices and popular virtual platforms, consumers should take practical steps to protect their personal data and finances from scammers. And parents and caregivers should take extra precautions to educate their children about potential risks, parental controls and healthy gaming habits.”

Follow these tips to help ensure you and your family can enjoy your favorite games while keeping your money and privacy safe:

Protect your personal information: Never share personal information, including your date of birth, social security number, family names or account information, with other gamers online. Scammers can pose as fellow players in chat rooms and virtual worlds. Block and report any online accounts that try to get your personal information.

Be wary of scammers and phishing attempts: Be wary of offers for discounted or rare virtual items to purchase outside of the official game platform. These items are often sold on social media and apps. Don’t click on suspicious links or download attachments from unfamiliar emails.

Never download items other users share: Never download any files shared by other players since they may have malicious software. Downloading these files or opening links could leave you vulnerable to hacking attempts or fraud.

Review privacy settings: Review device settings and find out what information gaming systems collect. Many gaming companies make money on player data and often buy, sell and trade this information between companies. Avoid linking personal social media or other accounts to your gaming system to minimize how much of your personal data is shared.

Pay attention to in-game purchases that can pose financial risks: Some gamers earn money by selling their in-game currency or accounts to other players. Players may also buy, trade or sell items outside of individual games. This practice is known as real-money trading, where players exchange intangible game assets for real currency or real-world money. There are several risks involved, and consumers can lose money if they get scammed by fraudulent sellers.

• Avoid in-game currency scams: scammers offer to sell in-game currency or items for real money or personal information, but the transactions are fake or the items are stolen. Never release private information in exchange for in-game currency.
• Beware of fake online stores: scammers create online stores selling in-game items, but the products are either fake or non-existent. Verify that the online store is legitimate by reviewing that the URL begins with “https” instead of http, and/or the browser displays a padlock icon next to the URL. Check the contact page and the website’s privacy policy. Websites should have adequate information about privacy, terms and conditions of use.
• Understand how much in-game currency is worth in real-life dollars: Many platforms use in-game currencies that players can buy using real-world money. Make sure you understand the exchange rate of game currency to real-world dollars before making these purchases to properly budget real-world money you spend in games.
• Example: If a player wants to buy a skin that costs 37,500 in-game coins and buys 50,000 coins for $30 of real-world money, that skin would cost the player $22.50 in real-world money.
• Only transfer real-life money as you need it: This can help you avoid being left with unused game currency without a way to transfer it back out to real-world dollars. Since game currency is often sold at different exchange rates, it’s easy to miscalculate and end up buying more game currency than you intend.

• Do not store your credit card information on your console or device: While keeping your credit card information saved for purchases can be convenient, this can leave the door open for fraud. This is also a best practice to avoid accidental purchases.

Protect Kids from Video Game Scams:

• Choose age-appropriate games and learn how to use parental controls: Parental controls are available on all video platforms. See the Entertainment Software Rating Board (ESRB) parental controls information page for guides on setting up parental controls for popular gaming consoles and devices at.
• These controls can include features like:
• Game rating restrictions: This limits the games which children can access to games with age-appropriate ratings.
• Managing internet access: This can include muting or disabling online chatrooms and allowing parents to approve their child’s online friend lists. Some systems also allow parents to disable internet access overall.
• Time Limits: This allows parents to limit the days, times and length of time their child can game.
• Multiple Profiles: Creating multiple profiles can allow parents to set parental controls for children’s profiles while maintaining free access on their own profiles.
• Restrictions on in-game purchases: Most gaming systems allow users to require a password in order to make in-game purchases.
• Monitor your child’s in-game spending habits: Children can be especially vulnerable to tactics gaming companies use to encourage more spending. Since managing video game currency is the first experience many children may have with making financial choices, they can also provide great learning opportunities about earning, saving and managing currency.
• Talk to your child: Parental controls are valuable tools, but the most important way to make sure your child has safe, healthy video game habits is having conversations to set expectations, learn about what games they’re playing and who they play with and explain the importance of online safety.

About the New York State Division of Consumer ProtectionFollow the New York Department of State on Facebook, X and Instagram and check in every Tuesday for more practical tips that educate and empower New York consumers on a variety of topics. Sign up to receive consumer alerts directly to your email or phone here.

The New York State Division of Consumer Protection provides voluntary mediation between a consumer and a business when a consumer has been unsuccessful at reaching a resolution on their own. The Consumer Assistance Helpline 1-800-697-1220 is available Monday to Friday from 8:30am to 4:30pm, excluding State Holidays, and consumer complaints can be filed at any time at www.dos.ny.gov/consumerprotection. The Division can also be reached via X at @NYSConsumer or Facebook.