Fortnite: Gaming’s Newest Money Laundering Risk

While this all seems like a parenting problem more than a banking problem, these funds are passing through financial institutions. How do BSA officers monitor for this suspicious activity?

Look for large card purchases with V-Bucks descriptors as well as other large transactions with the keyword Fortnite. These transactions may be quite common, but it should be noted large amounts are not. For reference, the average “skin” or outfit costs between $8 - $20. An “emote” or victory dance ranges from $5 - $8.

Be diligent when monitoring for crypto activity. Bitcoin and other cryptocurrencies are used frequently for the initial dark web credit card purchases. Additionally, look out for signs that a customer or member’s card has been compromised and used for fraud.

Pay attention to any unusual transactions that stray from their normal spending patterns. This includes “test” transactions, multiple transactions of a small dollar amount to test that the card is still valid.

In addition to protecting our U.S. financial system, what can parents and other adult mentors do to protect young people from being used as money mules? As a seasoned public school administrator and current guidance counselor, Beverly Newcomb suggests the following steps be made:

• Talk to their child about the game and the real-world risks involved.
• Have their child play in a public area like a family room, not in a remote bedroom, so that they can monitor gameplay.
• Watch him or her play now and then, or play along with them – understand the game.
• Encourage their child to play without a headset during online play so that they can monitor what the other players are saying.

The most important thing for players of all ages to understand is that all purchases should only be made from the official Fortnite store or the storefront of the gaming platform that they are using. Criminals are buying V-Bucks in bulk and then reselling these preloaded accounts for a hefty discount. These “deals” are often found on third-party sites like eBay along with social media sites. The top 50 “Fortnite” listings on eBay brought in almost $250,000 in the past 60 days alone. Any large volume or discounted offer is sure to be a scheme; as the saying goes, if it is too good to be true, it most likely is.

Criminals will continue to seek out new and innovative ways to be one step ahead of financial institutions and law enforcement.  New money laundering techniques will continue to surface, so we must continue to educate ourselves and our communities. For now, let the kids have fun and be diligent about monitoring your home and your financial institution.