Money-Laundering by Video Games: Financial Times

Valve, the developer of the popular video game “Counter-Strike: Global Offensive,” announced that players wouldn’t be allowed to trade the in-game currency that could be used for buying virtual knives, guns and skins. That was an abrupt action against the rising trend of money laundering by video games, in which criminals could cash in stolen credit cards or use the proceeds of crime for in-game currencies and tokens through various online marketplaces. Online game players pay hundreds or even thousands of dollars for virtual goods, and the company admitted nearly all trading activity on some sites was associated with money laundering. “Valve’s discovery highlighted a vulnerability in online gaming marketplaces that criminals have now been able to exploit for more than a decade, by cashing in stolen credit card details or liquidating larger gains from other kinds of illegal activities,” reports Tim Bradshaw for the Wall Street Journal. Even after Valve prohibited the trade of its virtual currency, players continued trading on some third-party markets. Game developers try to avoid burdensome anti-money-laundering laws and regulations as their business models heavily rely on players’ in-game purchases. With so much data collected from millions of players, game developers should take greater responsibility in preventing money laundering and fraud. – YaleGlobal