Report Identifies Financial and Privacy Risks to Consumers in Video Gaming Marketplaces

The Consumer Financial Protection Bureau (CFPB) issued a report examining the growth of financial transactions in online video games and virtual worlds.

Officials said the platforms increasingly resemble traditional banking and payment systems that facilitate the storage and exchange of billions of dollars in assets, including virtual currencies.

However, the officials said, consumers report being harmed by scams or theft on gaming platforms and not receiving the protections they would expect under federal law.

The CFPB said it will be monitoring markets where financial products and services are offered, including video games and virtual worlds, to ensure compliance with federal consumer financial protection laws.

“Americans of all ages are converting billions of dollars into currencies used on virtual reality and gaming platforms,” said CFPB Director Rohit Chopra.

Chopra added, “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.”

The report, Banking in Video Games and Virtual Worlds, looks at the growing use and scale of these assets across the gaming industry, the associated risks to consumers, and the evolution of games and virtual worlds into online marketplaces.

American consumers spent nearly $57 billion on gaming in 2023, including on hardware, software, and in-game transactions such as converting dollars to virtual currencies or other gaming assets.

 The assets are often bought, sold, or traded in virtual markets that allow gaming companies to replicate everyday activities online, including financial payments.

The report identifies a number of trends and risks associated with gaming assets, including:

Gaming products and services resemble conventional financial products: Games and virtual worlds enable players to store and transfer valuable assets, including in-game currencies and virtual items such as cosmetic skins or collectibles. For example, the largest reported sale of a cosmetic skin was for $500,000.

Games and virtual worlds act as a real-world marketplace that enables players to store and transfer valuable assets. To leverage that value, gaming companies have begun incorporating financial products and services such as proprietary payment processors and money transmitters.

Gaming companies provide little customer support when consumers experience financial harm: The increased value of in-game assets has fueled a rise in scams, phishing attempts, and account thefts. Attackers use phishing tactics or compromised user credentials to break into accounts and access game currency or virtual items, and then sell these assets off the platform for other currency.

Consumers report having little recourse with gaming companies when they suffer losses, and game publishers claim to have no obligation to compensate the players for financial losses, including when service to a game is suspended or a consumer’s account is closed.

Gaming companies are assembling gamers’ personal and behavioral data: Publishers are collecting large amounts of data on players, including behavioral details such as financial data, purchasing history and spending thresholds.

Gaming platforms can also track players’ location data, which can generate an accurate portrait of a player’s daily routines, such as their home address, places of employment or worship, and health and medical status.

And with the advent of virtual- and mixed-reality gaming, the information gathered by headsets may include biometric data such as iris scans, eye movement, pupil response, and gait analysis, which may pose medical privacy risks.

The CFPB said it has received consumer complaints about hacking attempts, account theft, and lost access to gaming assets. In the complaints, most consumers report receiving limited support from the gaming companies, such as reimbursements or security improvements.

Officials said existing consumer protection laws apply to banking and payment systems that facilitate the storage and exchange of valuable assets. The CFPB said it is monitoring markets where financial products and services may be offered, including video games and virtual worlds.

Gulf Relay Expands Operations with Opening of Wellford, SC, Terminal

Gulf Relay, a Mississippi-founded, asset-based transportation company, announced the opening of its terminal in Wellford, South Carolina, which occurred earlier this year.

Company officials said the strategic expansion comes in response to the high growth potential observed in Upstate South Carolina, and it marks a significant milestone in Gulf Relay's commitment to providing efficient and reliable transportation solutions. 

The decision to establish a presence in Wellford is driven by Gulf Relay's vision to tap into the thriving opportunities in the region and access a broader pool of skilled drivers, the officials said.

They said the Interstate 85 corridor has been identified as a key area for growth, and Gulf Relay is eager to contribute to the economic development of this region. 

The Wellford terminal includes an on-site office, an 8,000 square foot maintenance shop, 25 trailer spots, 20 truck spots, and convenient driver parking.

Company officials said the amenities are designed to enhance operational efficiency, provide basic maintenance services, and create a welcoming environment for Gulf Relay's dedicated team of drivers. 

Heading the operations at the Wellford terminal is Jason Mefford, a seasoned professional with 15 years of truckload experience.

Nucor Introduces New Hot-Rolled Coil Spot Pricing

Nucor Corporation (NYSE: NUE) said it is introducing a weekly Nucor Consumer Spot Price (CSP) to provide its customers with consistent and transparent communications regarding the company's hot-rolled coil spot pricing.

Nucor was scheduled to issue the first CSP on Monday, April 8, 20d24.

"The CSP will give our customers relevant and current information about Nucor's sheet business in a rapidly changing marketplace, which we believe will reduce their reliance on speculation and reduce risk," said Rex Query, executive vice president of Sheet Products for Nucor Corporation.

The CSP will be released every Monday, communicating Nucor's hot-rolled spot price for the week to Nucor customers. It will remain in effect until the next weekly publication.

Nucor said CSP pricing will be derived from both quantitative and qualitative data. Lead times for all spot orders will be offered between three and five weeks to assist customers with their planning, company officials said.

Nucor and its affiliates are manufacturers of steel and steel products, with operating facilities in the United States, Canada and Mexico.

Products produced include: carbon and alloy steel -- in bars, beams, sheet and plate; hollow structural section tubing; electrical conduit; steel racking; steel piling; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; precision castings; steel fasteners; metal building systems; insulated metal panels; overhead doors; steel grating; wire and wire mesh; and utility structures.

The company has operations in South Carolina.

States With Highest Number of Emergency Room Visits - SC Ranks Fifth

A new study by personal injury firm Suzuki Law Offices reveals that Mississippi has had the highest number of ER visits in the U.S.

The study analyzed data from the Healthcare Cost & Utilization Project provided by the Agency for Healthcare Research and Quality regarding annual visits to the ER in each U.S. state.

The visits from 2016 to 2020 were averaged and compared to the population to discover the average yearly number of visits per 10,000 individuals.

Mississippi emerges as the state with the highest average ER visits per 10,000 population, with a staggering 10,596 visits.

Factors contributing to this trend, according to the United Health Foundation, include the state’s obesity rate of 39.5 percent, the highest among the top five states in the study, as well as a high prevalence of hypertension (40.8 percent) and diabetes (14.3 percent), all of which significantly impact the demand for emergency medical services.

Kentucky closely follows, with an average of 9,454 ER visits per 10,000 individuals. The state grapples with one of the highest accident death rates in the nation, with 68.1 deaths per 100,000 population, coupled with a concerning diabetes rate of 11.7 percent, ranking seventh in the country, and an overdose mortality rate of 32.5 per 100,000 people.

Missouri ranks third, with 9,255 ER visits per 10,000 population. The state registered the seventh-highest firearm injury death rate in the country at 20.6 deaths per 100,000 population, which likely contributed to the high number of emergency room visits.

Further down on the list, Tennessee takes the fourth place with 8,872 visits to the emergency room per 10,000 individuals, while the top five closes with South Carolina, which registered an average of 8,508 visits to the ER per 10,000 population each year between 2016 and 2020.

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