A six-year-old child unknowingly spent $800 on “gems” for his video games, leaving his father unable to afford food.
This incident was examined by Financial Services Complaints (FSCL), an ombudsman service that handles unresolved complaints involving certain financial providers.
The father had entered his credit card details into his gaming computer for in-game purchases. Unaware, his six-year-old son used the computer and inadvertently charged the purchases to his father’s credit card.
When the father reviewed his account after a month, he discovered the $800 expenditure. His attempt to reverse the transactions was unsuccessful, as the gems had already been used.
The father argued to the card provider that it should have detected the 100 small transactions. However, the provider claimed it was not responsible.
FSCL evaluated the complaint and suggested the card provider consider resolving the issue on compassionate grounds, given the father’s financial difficulties and inability to purchase food.
In response, the card provider agreed to refund the full amount as a one-time gesture of goodwill.
FSCL ombudsman Susan Taylor emphasized the risks of storing credit card information on a shared device.
“I know it’s convenient, but if anybody else gets hold of that device, starts playing, exactly in this case, obviously a six-year-old no doubt didn’t understand that they were spending their dad’s money. But don’t store your cards on any devices where somebody else can use that device.
“And that really goes for your phone and computer as well. If you’re letting somebody else use your device and you’ve got cards stored on it, then they may be able to use those cards.”
Taylor advised regularly checking account balances to quickly identify any issues.
She further noted that if cards are not protected with a PIN or password, the card issuer is not obligated to cover any losses.
FSCL does not disclose the identities of the complainants or the financial providers involved.
