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Gold Farming A Chinese Full Time Job

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Gold farmers play massive multiplayer online games, not for fun, but to accumulate virtual currency, or “gold,” which can then be sold to other players, despite the fact that most game operators explicitly ban the exchange of in-game currency for cash. Gold farming is so lucrative, people in China and other developing nations can support themselves by working full-time operating gold farming rings.

About.com reports “most gold farmers are from developing countries such as China and Vietnam. According to World Bank estimates, there are currently over 100,000 people working as full-time gamers in China. They toil away for 12 or more hours a day in internet cafes, abandoned warehouses, and small offices, making about 25 cents an hour, or roughly $75 a month. There are quotas in place and work performances are heavily evaluated. The workforce is dominantly made up of migrant teenagers and young adults who come to the cities looking for work. These “virtual sweatshops” resemble the thousands of toy and appliance factories that have opened in China in the past several decades to take advantage of China’s abundance of cheap labor.”

Many leading MMOs are finding it increasingly necessary to deploy a layered defense to protect against gold farming, chargebacks and increasingly, account takeovers within gaming environments.  By leveraging the power of device reputation, which looks at the computer, smart phone or tablet connecting to the games, the gaming publisher can easily connect together players working together and shut down entire rings in one sweep.  In one case, a major gaming publisher saw the marvel of Oregon-based iovation’s fraud protection service and took action against 1,000 fraudulent accounts shortly after implementing the SaaS-based service.

Robert Siciliano, personal security and identity theft expert contributor to iovation. He is the author of 99 Things You Wish You Knew Before Your Mobile was Hacked! See him knock’em dead in this identity theft prevention video. Disclosures.

Online Gaming Is Lucrative For Organized Gold Farming Rings

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So-called “gold farmers” play massive multiplayer online games, not for fun, but to accumulate virtual currency, or “gold,” which can then be sold to other players, despite the fact that most game operators explicitly ban the exchange of in-game currency for cash. Gold farming is so lucrative, people in China and other developing nations can support themselves by working full-time operating gold farming rings.

During an interview with TechRadar’s Dan Griliopoulous, Will Leverett, Senior Manager of Customer Service at South Korea-based online video game company NCsoft, explains,“We’re convinced that groups on the seedier side of the Internet run in parallel to each other, with many offenders in China and Russia. The simplest thing players could exchange for real-world cash was in-game currency, which would then hugely unbalance the in-game economy and auction systems; essentially, those people buying currency were using their real-world wealth to employ a tribe of servants to do their work for them, as opposed to their compatriots who were attempting the same thing by the sweat of their brow.”

Massively multiplayer games that are free-to-play typically feature in-game currency, which can be converted to real cash. This currency drives organized criminals to set up banks of gamers on various IP addresses, manipulating the game in order to accumulate as much currency as possible.

Many leading gaming publishers and MMOs are finding it increasingly necessary to deploy a layered defense to prevent gold farming, chargebacks, virtual asset theft, and, increasingly, account takeovers within gaming environments. By leveraging the power of device identification and device reputation technology, which examines the computers, smart phones, and tablets being used to connect to an online game, the publisher can easily detect patterns of players working together and shut down an entire ring of cheaters at once. In one case, a major gaming publisher implemented Oregon-based iovation’s fraud protection service and was able to take action against 1,000 fraudulent accounts almost immediately.

Robert Siciliano, personal security and identity theft expert contributor to iovation, discusses identity theft for the National Speakers Association. (Disclosures.)

Gold Farming e-Guides Facilitate Banned Gaming Activities

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Most MMO game operators ban the sale of in-game currency for real-world dollars. But that hasn’t stopped gold farming from flourishing into a full-fledged underground economy.

A Telecoms.com article entitled “Killing Cash” addresses the ways in which virtual currency may be pushing old fashioned cash out of circulation altogether. One point is the prevalence of gold farming, which, according to a 2011 report by the World Bank’s InfoDev unit in 2011, an estimated 75% of all virtual goods sales involve gold farmers.

“The vast majority of gold farms are based in developing countries like China, and the phenomenon has attracted the same kind of publicity as sweat shops, with imagery of banks of computers staffed by ill-paid workers who repeat the same in-game tasks in World of Warcraft for hours at a time to earn in game currency. These funds are then traded on illicit exchanges for real world money. The value comes from games players who support the system as an easy way to boost their in-game funds.”

Numerous guides are available online to help readers learn how to gold farm more effectively, whether you’re a casual gamer or part of an organized crime ring. A press release from Ereviewguide.com touts their gold farming guide, which warns that “there is really not much money to be made by players who play the conventional way or who play the game purely for enjoyment,” despite the promises of “e-book scams, scam online guides and other digital forms of snake oil that try to get would-be players excited about online game gold farming as a way of making money online.” Nevertheless, Ereviewguide.com offers “tips and strategies to maximize gold farming efficiency.”

Game operators lose profits due to forced labor gold farming, and while they certainly want to stem their losses, they also have a humanitarian responsibility to the victims of this crime.

iovation’s ReputationManager 360 is a proven service that helps protect MMOs against chargebacks, virtual asset theft, gold farming, code hacking, and account takeovers. The service identifies devices being used to play and examines their history and reputation as they are interacting with the game – setting off alerts that could relate to velocity triggers, geolocation, device anomalies, past gold farming abuse, financial fraud, chat abuse, and more.

For years, leading game publishers have prevented game abuse and ensured a safe and fun experience for players with the help of iovation’s device reputation service. These publishers (along with iovation’s network of more than 2,000 fraud analysts from other online businesses) share information, trends, and best practices with iovation and with each other in order to stay one step ahead of cheaters and criminals.

Robert Siciliano, personal security and identity theft expert contributor to iovation, discusses identity theft for the National Speakers Association. (Disclosures.)

What is Gold Farming and How Can MMOs Fight Back?

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If someone asked me to go “gold farming,” I’d probably assume we were going to grab a couple pans and head north to a stream in New Hampshire, and with any luck, strike it rich.

But gold farming doesn’t refer to literal gold. Rather, gold farmers accumulate virtual currency by playing massive multiplayer online games. That virtual currency, or “gold,” is then sold to other players, despite the fact that most game operators explicitly ban the exchange of in-game currency for cash. Gold farming is so lucrative, people in China and other developing nations can support themselves as full-time gold farming ring operators.

The Washington Post recently reported, “Low-educated laborers in Asia spend hours each day advancing through levels of an online game, picking up gold, swords and gems that enhance a player’s status. Then gaming studios, which employ the players, sell those virtual goods to online retailers. Finally, the retailers sell those items to more than 120 million players worldwide, many of them in North America and Europe, who are unwilling to play the games all day to gather the items on their own.”

Some argue that in certain developing countries, gold farming is tantamount to slave labor. The New York Times reports that in China, gold farmers often work twelve hours a night, seven nights a week, with only two or three nights off per month. “For every 100 gold coins farmers gather they make about $1.25, earning an effective wage of 30 cents an hour, more or less. The boss, in turn, receives $3 or more when he sells those same coins to an online retailer, who will sell them to the final customer (an American or European player) for as much as $20.”

Meanwhile, a recent report by the World Bank suggests that online gaming has a positive impact in Asia because 70% of the industry’s revenue remains in the gaming countries, with most of that money going to studios.

I don’t know. 12-hour days, for 30 cents an hour? What do you think?

The bottom line is that gold farming negatively affects game play in that legitimate players are now unable to enjoy the full game experience. Being unsatisfied, they leave for other games (and often take their friends with them) and this damages the brand reputation and reduces the gaming publisher’s profits.

Many leading MMOs are finding it increasingly necessary to deploy a layered defense to protect against gold farming, chargebacks and increasingly, account takeovers within gaming environments.  By leveraging the power of device reputation, which looks at the computer, smart phone or tablet connecting to the games, the gaming publisher can easily connect together players working together and shut down entire rings in one sweep.  In one case, a major gaming publisher saw the marvel of Oregon-based iovation’s fraud protection service and took action against 1,000 fraudulent accounts shortly after implementing the SaaS-based service.

Robert Siciliano, personal security and identity theft expert contributor to iovation, discusses another databreach on Good Morning America. (Disclosures)

Chinese Prisoners Forced To Scam Gaming Sites

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When you think “prison camp,” you probably don’t picture a place resembling summer camp, with arts and crafts, hiking, swimming, and playing games. But in the Jixi prisoner labor camp in the coalmines of northeast China, they break rocks all day and play games at night.

Online games often reward players who accumulate a certain quantity of in-game points with cash payouts. Guards at this particular prison camp forced prisoners to do 12-hour shifts playing games, on top of their manual labor.

One former Jixi prisoner told The Guardian, “If I couldn’t complete my work quota, they would punish me physically. They would make me stand with my hands raised in the air and after I returned to my dormitory they would beat me with plastic pipes. We kept playing until we could barely see things.”

These prisoners were “gold farming,” monotonously repeating basic tasks within online games like World of Warcraft, in order to build up virtual currency. Gamers around the world are willing to pay real money in exchange for online credits, speeding up their progress within the game.

People in many developing countries have turned to gold farming in order to support themselves, but up to 80% of the world’s gold farmers are based in China, where as many as 100,000 people work around the clock to earn virtual points.

Game operators lose profits due to forced labor gold farming, and while they certainly want to stem their losses, they also have a humanitarian responsibility to the victims of this crime. iovation’s ReputationManager 360 is a proven service that helps protect against chargebacks, virtual asset theft, gold farming, code hacking, and account takeovers. The service identifies devices and shares their reputation as they are interacting with the game – setting off alerts that could relate to velocity triggers, geolocation, device anomalies, past gold farming abuse, financial fraud and lots more.

Many leading gaming publishers have been using iovation’s device reputation service for years to prevent game abuse upfront and ensure that their players have a safe and fun experience. These gaming publishers and iovation continually share information, the latest trends and best practices in order to stay one step ahead of the bad guys.

Robert Siciliano, personal security and identity theft expert contributor to iovation, discusses credit card fraud on NBC Boston. Disclosures

North Korea Hacks Online Games to Fund Terrorism?

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The Guardian reports, “South Korean police recently arrested five people who allegedly collaborated with North Korean hackers to steal millions of dollars in points from online gaming sites. Members of the gang, which included North Korea’s technological elite, worked in China and shared profits after they sold programs that allowed users to rack up points without actual play.”

Scammers resell stolen points to gamers, who use the points to play more games or to purchase equipment or accessories for their avatars. According to Seoul police, the cybercriminals behind this particular scheme made $6 million in less than two years. 55% of that went to the team of hackers, while some went to Kim Jong-il’s multibillion-dollar slush fund, which American and South Korean officials say is at least partially used to fund a nuclear weapons program.

South Korean officials blame the North Korean government’s Computer Center, an IT research venture, for orchestrating the fraud.

Many of the world’s largest gaming publishers and digital goods providers rely on iovation’s ReputationManager 360 to detect fraud upfront through its extensive, globally-shared database of 700 million devices seen connecting to online businesses and the 6 million fraud events already associated with many of these devices.

iovation has already flagged more than 13 million activities within gaming sites for gaming publishers to either reject as completely fraudulent, or to send for manual review as high-risk activity was detected in real time. This has saved gaming publishers millions of dollars in fraud losses by not only stopping a fraudulent activity (such as a cyber criminal setting up a new account in the game, or a purchase from the in-game store using stolen credentials), but it connects cyber criminals working together so that the publisher can identify entire fraud rings and shut them down at once.

Gaming operators can customize business rules around geolocation, velocity, and negative device histories (including gold farming, code hacking, virtual asset theft, and policy violations) to identify nefarious accounts activity, or fraudulent use of stolen accounts. More than 2,000 fraud-fighting professionals contribute to iovation’s global database every single day, continuously strengthening the system while maintaining a safe and inviting environment for their players.

Robert Siciliano, personal security and identity theft expert contributor to iovation, discusses credit card fraud on NBC Boston. Disclosures