Why we don't call it as it should be called ? Fraud as it is. Friendly fraud is also Facebook's fake acccounts
Facebook Let Kids Rack Up Charges on Parents' Credit Cards
21–30 of 193 posts
Re: Facebook Let Kids Rack Up Charges on Parents' Credit Cards
#22The issue is Facebook denying refund requests after children were suckered in to make large in-game payments using their parents' stored credit cards. It's not just that this whole scenario is slimy. It's that Facebook was fully aware of it, had a nice in-house term for it ("friendly fraud"), and not only chose not to approve refunds but also chose not to implement the most basic measures to prevent it. [edit: as a c…
> “It doesn’t necessarily look like ‘real’ money to a minor,” This is intentional. In many games, some things cost "gold" earned by playing the game, and others cost "gems" bought with real money. Or maybe "gold" is the one that costs real money. It's designed to be confusing and hide the distinction between in-game points and real money. At some point the game companies should bear some of the responsibility for dec…
> At some point the game companies should bear some of the responsibility for deceiving children.
I hope a reckoning is coming in this regard. Many games include mechanics that are hard to distinguish from video slot machines and should be regulated the same way gambling is (rated 18+, audited for "fairness").
Re: Facebook Let Kids Rack Up Charges on Parents' Credit Cards
#23So, FB not only did this scummy act once, they did it many many times, never tried to remedy it, and never tried to alter the 'pathway' for this to occur, but they had this happen so often that they came up with a nick-name for it?
Like, I knew they were evil, but I didn't think they were stupid too [0].
[0] https://en.wikipedia.org/wiki/Stringer_Bell#Season_three
Re: Facebook Let Kids Rack Up Charges on Parents' Credit Cards
#24If Facebook knowingly refused to refund improper transactions, THEY are the ones committing fraud. Plain, old, "screw you, Facebook user" fraud.
Re: Facebook Let Kids Rack Up Charges on Parents' Credit Cards
#25The issue is Facebook denying refund requests after children were suckered in to make large in-game payments using their parents' stored credit cards. It's not just that this whole scenario is slimy. It's that Facebook was fully aware of it, had a nice in-house term for it ("friendly fraud"), and not only chose not to approve refunds but also chose not to implement the most basic measures to prevent it. [edit: as a c…
> “It doesn’t necessarily look like ‘real’ money to a minor,” This is intentional. In many games, some things cost "gold" earned by playing the game, and others cost "gems" bought with real money. Or maybe "gold" is the one that costs real money. It's designed to be confusing and hide the distinction between in-game points and real money. At some point the game companies should bear some of the responsibility for dec…
You're right, but I don't think this is quite what the quote is referencing. If payment details are stored and kids are merely presented with a colourful popup confirming they want to spend $99 for 2000 gems, it doesn't seem like a real transaction to them (putting aside the fact most kids have no appreciation for the value of money).
Re: Facebook Let Kids Rack Up Charges on Parents' Credit Cards
#261. Company is on the record as being aware of unauthorized use of parents' credit cards.
1a. Company is aware of channels particularly prone to unauthorized use of credit cards (with Ninja games being presented as the archetype).
2. Company creates a method for verifying the authority of purchase (and confirms that it works)
3. Company intentionally does not implement verification method, thus explicitly profiting from known fraud.
Now, I'm very much not a lawyer, but this strikes me as the sort of behavior we would seek criminal penalties for. Has there been any indication that this has been forwarded to the relevant parties for investigation / prosecution?
Re: Facebook Let Kids Rack Up Charges on Parents' Credit Cards
#27Earlier quoted context omitted.
> “It doesn’t necessarily look like ‘real’ money to a minor,” This is intentional. In many games, some things cost "gold" earned by playing the game, and others cost "gems" bought with real money. Or maybe "gold" is the one that costs real money. It's designed to be confusing and hide the distinction between in-game points and real money. At some point the game companies should bear some of the responsibility for dec…
> At some point the game companies should bear some of the responsibility for deceiving children. I hope a reckoning is coming in this regard. Many games include mechanics that are hard to distinguish from video slot machines and should be regulated the same way gambling is (rated 18+, audited for "fairness").
When I followed the Valve game CS:GO a few years ago, I was pretty disgusted by the gambling done in that game. It made up an insane % of players, many of them children, who would bet weapon skins on third party websites based on ESports games. Valve shut those third party sites down but continued to market different kinds of skins such as gloves, music, etc. I wonder how much money moved to and away minors during that period.
Re: Facebook Let Kids Rack Up Charges on Parents' Credit Cards
#28Steam / Valve did this for quite a few years until they were taken to court in Australia for their unfair practices. A judge said their refund policy was criminal and intended to deny refunds and fined them a couple million dollars for an estimated 20,000 times. Steam drastically changed their refund policy and evaded fallout everywhere else, but it's probably going to be substantial for Facebook.
https://www.pcmag.com/news/350574/valve-fined-3m-in-australi...
Re: Facebook Let Kids Rack Up Charges on Parents' Credit Cards
#29"Friendly fraud" is not a Facebook-invented term. It's a term used and understood by card issuers, acquirers, and merchants.
Friendly fraud encompasses:
- Dissatisfied customers who don't find refuge in a refund policy/process
- Customers who are embarrassed by their purchases. This situation is commonly triggered when a significant other reads a credit card statement.
- Customers who spend beyond their means, and then look for a "solution" when the statement comes due
I find it weird the way Facebook seems to be using the term here. These are charges that were never contemplated by the cardholder. There is no "buyer's remorse" dimension.
Friendly fraud is specifically about charges that are agreed by the card holder, but they later change their mind and pretend otherwise.
Re: Facebook Let Kids Rack Up Charges on Parents' Credit Cards
#30Personally I think most of the reporting on Facebook is written to drive clicks and ad revenue. It's usually exaggerating the problems.
This story is truly messed up though.