Pokemon Go Users Could Become Victims of Credit Card Fraud

July 18, 2016, Written By John H. Oldshue
pokemon go

Pokemon Go has become a worldwide phenomenon, and it has only been available for a couple weeks. The app is free to install and play, but the way it is set up could put millions of users at risk of credit card fraud.

Even though Pokemon Go does not directly collect credit card information, it does gather a plethora of personal information: contact lists, GPS locations, SD card contents, and access to a person’s camera. In effect, the app knows who you are and where you are at all times. The relaxed privacy policy for the app allows Niantic, the creating company, the authority to do such things as sell this information, share it with third parties and turn it over to law enforcement.

One of the revenue sources for Pokemon Go is in-app purchases, where users pay for apps or products from third parties while still playing the game. This is where the risk of credit card fraud comes into play. The loose privacy policy for the app, combined with the fact that people do eventually enter their payment information into the system, could become a significant concern for financial institutions and consumers in the coming months.

Pokemon Go currently has 21 million daily active users, more than the longstanding social media platform Twitter. Some researchers believe that worldwide in-app purchases on Pokemon Go will reach $58.2 billion by the end of this year and $76.5 billion by the end of 2017. That is a vast amount of money and financial information floating around a questionably secure network.



The information contained within this article was accurate as of July 18, 2016. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.