WELCOME

The problem of "adverse fraud"

Feb. 13, 2017 by Catherine Pope

The problem of "adverse fraud"

The children, as the senators call them, "were simply playing games that did not include any payment processing, and were therefore unable to make purchases without having to be physically present, in order to make purchases without knowing where they would eventually be charged."

"This is a particularly disturbing pattern of pervasive fraud that's led to parents becoming even more unwilling to pay for their own virtual children," the senators' letter said.

The problem is that the parents of the children in this case are likely already getting paid for playing games with them, according to the Senate's letter.

Parents who don't know where they will eventually be charged, or who haven't set up a credit card will have to pay $2,000 in penalties to the bank, according to the letter.

"Even if your company doesn't recognize this problem, it's still unlikely that you'll be charged for the fraud," the Senate's letter stated.