chargeback
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Fraud and its effects on the MMO industry
As the number of people embracing MMOs has increased exponentially over the years, so too has the frequency and scale of fraud related to these games and credit card transactions. Chargebacks resulting from fraudulent credit activity are a growing problem for MMO publishers. Gamasutra has run an enlightening Q&A with Gene Hoffman, Chairman and CEO of Vindicia, a billing and fraud management company with no small amount of expertise in the MMO arena. The interview discussed the ramifications of chargebacks for MMO publishers, such as Blizzard, which sheds some light on the fact that having the dominant industry marketshare comes with a few downsides as well. While not commenting about Blizzard specifically, Hoffman says, "We have noticed across all our gaming clients when it comes to fraud is that the 1% chargeback rate is really a marketing budget. Having your chargebacks too low often means you aren't being aggressive enough on the customer acquisition side." Have a look at Gamasutra's talk with Hoffman, a discussion which ranges from in-game theft to hybrid subscription/micro-transaction business models.
Another blow in the keylogging experience
Thank you all for the encouragement I received in response to my recent keylogging experience. As a whole the experience was just dreadful. As I mentioned on last week's WoW Insider Show podcast, I am still afraid every time I log in that I will get the "The information you have entered is not valid" error. For the most part things have settled down, but the fear remains. The worst part of the keylogging episode was that my Shaman was transferred from a PvP to PvE server. After about a week in limbo my beloved Tauren was returned to her proper place. I was extremely relieved. Unfortunately that's the only thing on my account that Blizzard was kind enough to restore. They refused to return any of my gear or gold and did nothing about the items ninjaed from the guild bank. I appealed their decision with several emails. Those appeals were ubiquitously denied despite logical arguments and heart-filled plights. I thought it was all over, for better or for worse. I got more bad news in my email box the other day:
