The Financial Ombudsman has urged people to be vigilant with saving their card information online after a six-year-old managed to spend $800 on in-game purchases.
The Financial Ombudsman Service, Financial Services Complaints Limited (FSCL) said small mistakes with digital payments could lead to "significant losses and stress".
In a recent complaint to FSCL, a father had saved his credit card details on his computer for in-game purchases.
His six-year-old son, Flynn, also used the computer for gaming and unintentionally spent $800 on game 'gems', leaving his father with no money and struggling to buy food.
Financial Ombudsman Susan Taylor said "if you load your card details onto a gaming device, anyone playing on that device could use your card to pay for in-game purchases".
"We recognise how upsetting it is for parents to discover that a child's game has left them short of money for essentials, which is why it’s so important to secure your card details on shared devices."
Taylor encouraged consumers to take simple protective steps" including using passwords, or PINs to secure your cards and keeping a close eye on accounts.
"Check your account and transactions regularly, and report anything you don’t recognise early, even if it’s only a small amount of money," she said.
Failing to protect your card and PIN wiould likely mean the card issuer isn’t required to reimburse you.
In this case, however, the card issuer offered a goodwill payment to cover the loss.
The FCSL also warned to check all account details before sending money overseas, an issue that was highlighted in another recent complaint in which saw an older customer lose $20,000 he had tried to transfer to his son overseas.
In this case, the account number was correct, but the routing number – used by banking institutions in some countries – was for a different bank.
Despite attempts by the money transfer service and the customer’s son, the money could not be recovered.
"If any of the details are incorrect, your provider may not be able to recover the funds. The opportunity to recall a transaction paid in error is very limited," Taylor said.
She said the cases highlighted how simple mistakes could lead to major stress.
"The best protection is to slow down and double‑check details: secure your cards, don’t store card details unnecessarily, and always confirm account numbers and payment details before you click ‘pay’. If something goes wrong, contact your money transfer service or card issuer immediately and seek help early."
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