In an intriguing move this past Friday, the Consumer Financial Protection Bureau (CFPB), a U.S. government agency tasked with safeguarding consumers from the tricky and sometimes deceptive practices of banks and financial institutions, unveiled a proposal aimed at shielding Roblox users from scams and hacks. The agency is keen on hearing directly from players who use virtual currency, gathering insights on any hurdles they’ve encountered and assessing how effectively companies respond to scam reports.
This new proposal isn’t about introducing a fresh law; rather, it’s about reinterpreting an existing regulation known as the Electronic Fund Transfer Act (EFTA). Crafted back in 1978 during President Jimmy Carter’s administration, the EFTA was initially designed to protect consumers from unwelcome debit transactions as ATMs began gaining popularity. Now, the CFPB is looking to broaden the EFTA’s reach to encompass specific gaming platforms like Roblox.
“The dynamics of gaming currencies and accounts are changing at a fast pace, increasingly mimicking banking and payment systems,” the agency highlighted in a blog post.
As gaming evolves, issues have surfaced, reported sometimes by players themselves or their parents and guardians. These challenges include difficulties in converting dollars to in-game currency, unauthorized transactions, hacks, account takeovers, theft, scams, and asset losses. Compounding these problems is the limited support users feel they receive from gaming companies, banks, or digital wallets. Often, refund requests are denied, and players end up with suspended accounts after seeking refunds from their financial institutions. Some find themselves endlessly entangled in automated customer service loops, desperately trying to get clear, human answers.
The changing law wouldn’t cast its net over every game featuring in-game currency transactions, but it does set its sights on games like Roblox that boast a monetized virtual marketplace shared among users. To fall under this scope, platforms must meet certain criteria outlined in the proposal: the ability to pay for goods or services from various merchants, withdraw funds or obtain cash, or enable person-to-person transfers.
On Roblox, users dive into a digital economy where they buy a currency called Robux. This digital cash is frequently used by players to acquire in-game enhancements and cosmetics created by other users. On the flip side, developers earn a slice of those Robux spent on their creations and can swap them for U.S. dollars through the Developer Exchange Program. However, games like Fortnite might sidestep this rule, given that their users can’t sell cosmetics or transfer V-bucks among themselves or exchange services.
