Nonconvertible in-game currency
With nonconvertible in-game currency , the players can exchange real fiat money for the game ’ s currency . This currency cannot be exchanged with other players . It can be used to buy accessories in video games , such as skills , weapons and other items to improve the skill sets of a particular character or to customize it . Today , many worldwide popular games use this type of currency and monetize it by selling nonconvertible in-game currencies . 4
How money laundering in an online video game occurs
The use of in-game convertible and nonconvertible currencies in the online video game industry and the anonymity provided to players has created an environment that is susceptible to criminal activities . These criminal activities and money laundering schemes often begin with the criminals stealing credit card information from other users and from external sources outside of the video game . The stolen credit cards are then used to purchase in-game currencies and other items by conducting microtransactions or by purchasing loot boxes .
Other methods of criminal activities and money laundering schemes include :
• Purchasing virtual currency or in-game items with illicit funds and then selling them on third-party marketplaces for a profit .
• Using virtual currency or in-game items to purchase real-world goods or services , such as weapons , drugs or other illicit items .
• Creating multiple accounts in a game and using them to transfer virtual currency or in-game items between them .
• Gambling with virtual currency or in-game items in online games .
• Creating fake virtual items in a game and selling them to other players . 5
Microtransactions
“ Microtransactions are systems that allow players to purchase virtual currencies , digital assets and additional gaming content .” 6 In essence , microtransactions describe player purchases of in-game items with real money . A microtransaction purchase is often small in price and is present in mobile apps and free-to-play model games . “ Microtransactions are also present in games in which players are required to initially purchase a base
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