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Kids Buy the Darndest Things Cybertraps LIVE 110
- News Items
- New Jersey toddler Ayaansh Kumar bought nearly $2,000 in Walmart furniture, unbeknownst to his parents https://www.washingtonpost.com/nation/2022/01/25/new-jersey-toddler-walmart-cart-online-shopping/
- Mother Madhu Kumar shopped for furniture and other household goods but did not actually purchase them
- Her son Ayaansh (22-months) was playing on her phone and somehow would up in the Walmart app, where he executed the purchases
- His parents tried to cancel the undelivered orders but were unable to do so
- They’ve arranged to return the items (most of them) to Walmart for refunds
- Parents will install passcodes and prevent the automatic loading of payment info
- New Jersey toddler Ayaansh Kumar bought nearly $2,000 in Walmart furniture, unbeknownst to his parents https://www.washingtonpost.com/nation/2022/01/25/new-jersey-toddler-walmart-cart-online-shopping/
- How It Happens
- This is a problem that has been around since the rise of the world wide web (and probably even before that)
- A kid with access to a parent credit card could use it online to make purchases, since there are no reliable tools for checking identity online
- More recently, credit cards are stored by online merchants or in apps, making it much easier for unauthorized purchases to occur
- So-called “bait apps” aggressively encourage children to make in-app purchases to enhance their playing experience
- Problem has spread to smart speakers (Alexa,
- Legal Issues
- Parents are legally liable for the purchases made by their children when children use their parents’ credit cards
- Credit card companies that promise zero liability for unauthorized purchases may offer refunds but others will only do so if the card is lost or stolen
- Refunds may be available
- However, some service providers or game companies may refuse to issue refunds if payment is made through a third-party (the Apple Store, for instance)
- Refunds may also be denied if you have made your child an authorized user
- If the online service provider is guilty of fraud or inducements aimed at children, the Federal Trade Commission may order refunds
- In 2014, the FTC settled a class action lawsuit with Google, Apple, and Amazon, in which all three companies paid millions in refunds.
- Parents are legally liable for the purchases made by their children when children use their parents’ credit cards
- Recovery / Restitution
- Try to cancel pending orders
- Request refunds from the merchant
- Dispute the charges with your credit card
- Contact the Federal Trade Commission
- Set up a GoFundMe?
- Prevention
- Supervision and Education
- Browser Filters
- Parental Control Accounts
- Apple’s Ask to Buy and Family Sharing sends a request to the card holder each time a child tries to make a purchase or download. You can eliminate in-app purchases entirely by turning on Screen Time on their devices.
- Child-Specific Browsers
- Help your child(ren) understand the use of credit cards and possible consequences
- Clear Boundaries
- Set up separate Apple IDs for children (make sure you know the password)
- Turn on “guest mode” on your device (if available) before handing it to a child
- Require password or biometric confirmation by an adult for purchases
- Financial Restrictions
- Do not link your credit card to apps used by your child
- If your child is an authorized user, see if your credit card company will let you set a limit on his or her spending, or create real-time notifications for purchases
- Consider using a debit card or topping-off card for in-app purchases
- Device protection
- Make sure that your device locks within a short time – 10–15 seconds
- Use a password that is complicated/long enough that it cannot easily be memorized by a watching child
- Try not to leave mobile devices unattended
- Supervision and Education
- Resources
- Advice and Tips - #2021–08–03 How to protect your credit card from small kids https://www.kaspersky.com/blog/save-credit-card-from-games-small-kids/40997/ - #2021–01–26 Who’s responsible for your kids’ unauthorized credit card charges? https://www.cnbc.com/select/whos-responsible-for-kids-unauthorized-credit-card-charges/ - #2019–08–23 Children and Internet: How to avoid accidental purchases https://www.santander.com/en/press-room/dp/children-and-internet-how-to-avoid-accidental-purchases - #2019–01–25 5 Ways to Curb Kids’ In-App Purchases on the iPhone https://www.commonsensemedia.org/blog/5-ways-to-curb-kids-in-app-purchases-on-the-iphone - #2018–08–18 How To Prevent Your Kid From Ordering $400 Worth of Toys on Amazon https://thepointsguy.com/news/how-to-prevent-your-kid-from-ordering-toys-on-amazon/ - #2018–04–18 How to Stop Your Kids From Buying Stuff in Fortnite https://lifehacker.com/how-to-stop-your-kids-from-buying-stuff-in-fortnite–1825339110 - #2014–03–31 Apple Lets Parents Get Refunds for In-App Purchases https://www.nbcnews.com/business/consumer/apple-lets-parents-get-refunds-in-app-purchases-n67811 - #2013–04–16 How to Prevent Your Kids From Spending Thousands of Dollars on In-App Purchases https://www.howtogeek.com/142491/how-to-prevent-your-kids-from-spending-thousands-of-dollars-on-in-app-purchases/
- Cautionary Tales - #2021–05–07 A mom panicked when her 4-year-old bought $2,600 in SpongeBob Popsicles. Good Samaritans are paying. https://www.washingtonpost.com/lifestyle/2021/05/07/spongebob-popsicles-noah/ - #2021–02–16 Boy, 7, accidentally spends £1,200 on online games, including £800 on virtual cat food https://www.mirror.co.uk/news/uk-news/boy–7-accidentally-spends–1200–23508222 - #2020–12–13 Child spends $16K on iPad game in-app purchases https://appleinsider.com/articles/20/12/13/kid-spends–16k-on-in-app-purchases-for-ipad-game-sonic-forces - #2020–03–11 My kids spent £600 on their iPads without my knowledge #Roblox https://www.theguardian.com/money/2020/mar/11/my-kids-spent–600-on-their-ipads-without-my-knowledge - #2019–07–15 ‘My son spent £3,160 in one game’ https://www.bbc.com/news/technology–48925623 - #2018–03–23 Parents Are Sharing the Hilariously Random Things Their Kids Accidentally Purchased Online https://www.workingmother.com/parents-are-sharing-the-hilariously-random-things-their-kids-accidentally-purcha...
View all episodes
By Frederick Lane & Jethro Jones
5
2525 ratings
- News Items
- New Jersey toddler Ayaansh Kumar bought nearly $2,000 in Walmart furniture, unbeknownst to his parents https://www.washingtonpost.com/nation/2022/01/25/new-jersey-toddler-walmart-cart-online-shopping/
- Mother Madhu Kumar shopped for furniture and other household goods but did not actually purchase them
- Her son Ayaansh (22-months) was playing on her phone and somehow would up in the Walmart app, where he executed the purchases
- His parents tried to cancel the undelivered orders but were unable to do so
- They’ve arranged to return the items (most of them) to Walmart for refunds
- Parents will install passcodes and prevent the automatic loading of payment info
- New Jersey toddler Ayaansh Kumar bought nearly $2,000 in Walmart furniture, unbeknownst to his parents https://www.washingtonpost.com/nation/2022/01/25/new-jersey-toddler-walmart-cart-online-shopping/
- How It Happens
- This is a problem that has been around since the rise of the world wide web (and probably even before that)
- A kid with access to a parent credit card could use it online to make purchases, since there are no reliable tools for checking identity online
- More recently, credit cards are stored by online merchants or in apps, making it much easier for unauthorized purchases to occur
- So-called “bait apps” aggressively encourage children to make in-app purchases to enhance their playing experience
- Problem has spread to smart speakers (Alexa,
- Legal Issues
- Parents are legally liable for the purchases made by their children when children use their parents’ credit cards
- Credit card companies that promise zero liability for unauthorized purchases may offer refunds but others will only do so if the card is lost or stolen
- Refunds may be available
- However, some service providers or game companies may refuse to issue refunds if payment is made through a third-party (the Apple Store, for instance)
- Refunds may also be denied if you have made your child an authorized user
- If the online service provider is guilty of fraud or inducements aimed at children, the Federal Trade Commission may order refunds
- In 2014, the FTC settled a class action lawsuit with Google, Apple, and Amazon, in which all three companies paid millions in refunds.
- Parents are legally liable for the purchases made by their children when children use their parents’ credit cards
- Recovery / Restitution
- Try to cancel pending orders
- Request refunds from the merchant
- Dispute the charges with your credit card
- Contact the Federal Trade Commission
- Set up a GoFundMe?
- Prevention
- Supervision and Education
- Browser Filters
- Parental Control Accounts
- Apple’s Ask to Buy and Family Sharing sends a request to the card holder each time a child tries to make a purchase or download. You can eliminate in-app purchases entirely by turning on Screen Time on their devices.
- Child-Specific Browsers
- Help your child(ren) understand the use of credit cards and possible consequences
- Clear Boundaries
- Set up separate Apple IDs for children (make sure you know the password)
- Turn on “guest mode” on your device (if available) before handing it to a child
- Require password or biometric confirmation by an adult for purchases
- Financial Restrictions
- Do not link your credit card to apps used by your child
- If your child is an authorized user, see if your credit card company will let you set a limit on his or her spending, or create real-time notifications for purchases
- Consider using a debit card or topping-off card for in-app purchases
- Device protection
- Make sure that your device locks within a short time – 10–15 seconds
- Use a password that is complicated/long enough that it cannot easily be memorized by a watching child
- Try not to leave mobile devices unattended
- Supervision and Education
- Resources
- Advice and Tips - #2021–08–03 How to protect your credit card from small kids https://www.kaspersky.com/blog/save-credit-card-from-games-small-kids/40997/ - #2021–01–26 Who’s responsible for your kids’ unauthorized credit card charges? https://www.cnbc.com/select/whos-responsible-for-kids-unauthorized-credit-card-charges/ - #2019–08–23 Children and Internet: How to avoid accidental purchases https://www.santander.com/en/press-room/dp/children-and-internet-how-to-avoid-accidental-purchases - #2019–01–25 5 Ways to Curb Kids’ In-App Purchases on the iPhone https://www.commonsensemedia.org/blog/5-ways-to-curb-kids-in-app-purchases-on-the-iphone - #2018–08–18 How To Prevent Your Kid From Ordering $400 Worth of Toys on Amazon https://thepointsguy.com/news/how-to-prevent-your-kid-from-ordering-toys-on-amazon/ - #2018–04–18 How to Stop Your Kids From Buying Stuff in Fortnite https://lifehacker.com/how-to-stop-your-kids-from-buying-stuff-in-fortnite–1825339110 - #2014–03–31 Apple Lets Parents Get Refunds for In-App Purchases https://www.nbcnews.com/business/consumer/apple-lets-parents-get-refunds-in-app-purchases-n67811 - #2013–04–16 How to Prevent Your Kids From Spending Thousands of Dollars on In-App Purchases https://www.howtogeek.com/142491/how-to-prevent-your-kids-from-spending-thousands-of-dollars-on-in-app-purchases/
- Cautionary Tales - #2021–05–07 A mom panicked when her 4-year-old bought $2,600 in SpongeBob Popsicles. Good Samaritans are paying. https://www.washingtonpost.com/lifestyle/2021/05/07/spongebob-popsicles-noah/ - #2021–02–16 Boy, 7, accidentally spends £1,200 on online games, including £800 on virtual cat food https://www.mirror.co.uk/news/uk-news/boy–7-accidentally-spends–1200–23508222 - #2020–12–13 Child spends $16K on iPad game in-app purchases https://appleinsider.com/articles/20/12/13/kid-spends–16k-on-in-app-purchases-for-ipad-game-sonic-forces - #2020–03–11 My kids spent £600 on their iPads without my knowledge #Roblox https://www.theguardian.com/money/2020/mar/11/my-kids-spent–600-on-their-ipads-without-my-knowledge - #2019–07–15 ‘My son spent £3,160 in one game’ https://www.bbc.com/news/technology–48925623 - #2018–03–23 Parents Are Sharing the Hilariously Random Things Their Kids Accidentally Purchased Online https://www.workingmother.com/parents-are-sharing-the-hilariously-random-things-their-kids-accidentally-purcha...