Parents Michael and Jennifer Ferri are speaking out and sharing a warning for other parents after they learned their 8-year-old son unintentionally racked up $4,000 in charges on their credit card while playing video games.
"I mean, I lost my mind," Jennifer Ferri told "Good Morning America" after finding out about the unexpected charges her son Joey had made.
After months, the Ferris were finally able to get a full refund but they said their experience is a precautionary story.
"I think sometimes, it's confusing as to what's real money and what's fake money," Michael Ferri said.
MORE: Mom shares lessons learned after son spends over $800 on Roblox purchasesAccording to a July 2023 report by the Entertainment Software Association, which represents the video game industry, more than 200 million Americans and about 3 out of every 4 children under 18 play video games regularly. An estimated $57 billion are spent on video games every year, according to the Consumer Financial Protection Bureau, the government agency responsible for safeguarding Americans' finances.
Now, the CFPB is warning in a new report that Americans may not have the same protections online and in the virtual world as they do in the real world.
"We want to make sure it's not a haven for fraud, scams and abuse," Rohit Chopra, the director of the CFPB, told ABC News' Elizabeth Schulze.
MORE: Mom warns parents after son charges $16K on in-app game purchasesThe CFPB report highlights how using virtual currencies to buy coveted in-game items, such as vehicles, weapons or characters, could put players' money at risk.
"What's pretty obvious is that [video game companies'] financial incentives are for players to spend as much as possible," Chopra said.
According to the CFPB, "gaming accounts often lack the security and protections of traditional bank accounts" and can leave them vulnerable to hacking, account theft, scams and unauthorized transactions.
"When we have a fraudulent charge on our credit card, we can fight it. Many times you see on these gaming platforms, there's really just finger pointing or not really taking accountability," Chopra said.
"I think we shouldn't think of this as traditional video games. It's an immersive world [with] its own economy. But what we want to make sure [of] is that it's not just a way to sidestep existing rules," Chopra added.
The Entertainment Software Association told "GMA" in a statement, "We are committed to providing players and parents with transparent information and tools to make appropriate choices for themselves and their families, including … the ability to manage in-game purchases, limit or block communications with other players, and manage when and for how long their children can play."
Parents can turn on parental controls on video games to block or restrict the money kids can spend while playing video games. Parents can also consider linking a child's account to a prepaid gift card instead of a credit or debit card.
