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“Scamville”:Techcrunch Shines Light on Social Media Scams
November 1, 2009 by anne
Social gaming companies are making hundreds of millions of dollars on Facebook and MySpace. But in a series of posts, TechCrunch says some of these gaming companies, such as Zynga and Farmville are making money by scamming players who accept offers for in-game currency in exchange for special offers that are really lead generation scams. One example: a “Farm IQ Quiz” offered by Offerpal rewards the user with Farm Cash for taking the survey---and signs them up to a $9.99/month mobile subscription without the user’s consent.
Another example provided by TechCrunch: Users are offered in-game currency when they sign up to receive a learning CD from Video Professor for just $10 shipping. But a different page, separate from checkout, tells them they will be getting a full set of CDs at a cost of $189.95 unless they return them.
TechCrunch notes: “Here’s the really insidious part: game developers who monetize the best (and that’s Zynga) make the most money and can spend the most on advertising. Those that won’t touch this stuff (Slide and others) fall further and further behind. Other game developers have to either get in on the monetization or fall behind as well…The games that scam the most, win.”
The posts have generated a firestorm of reaction, from companies who provide the offers, such as Offerpal, who called the assertions “shit, double shit and bullshit,” to commenters who say they’ve been victimized by the offer scams. Companies who have participated, or who have been approached to participate in offer scams, have commented that this has been going on for awhile without much notice from the media or social media sites.
UPDATE: Scamville Fallout
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