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In-App Purchases & Loot Boxes

How in-app purchases and loot box mechanics target children, and practical steps to prevent unwanted spending.

What is this?

In-app purchases allow children to spend real money within games and apps, often on virtual items, extra lives, or cosmetic upgrades. Loot boxes — randomised rewards bought with real or in-game currency — use mechanics similar to gambling. Children may not fully understand they are spending real money, and costs can accumulate quickly.

How it works

Apps and games use psychological techniques to encourage spending: limited-time offers create urgency, premium currencies obscure the real cost, and loot boxes exploit the thrill of chance. If a payment method is linked to the device, a child can make purchases with a single tap. Some games make progress deliberately frustrating to encourage 'pay-to-win' spending.

Warning signs

Prevention steps

Remove payment methods from the device

Do not link your bank card or credit card to your child's device or app store account. Use prepaid gift cards with set amounts instead, so there is a clear spending limit.

Enable purchase authentication

Set up password, PIN, or biometric authentication for every purchase. On Apple devices, use 'Ask to Buy' through Family Sharing. On Android, enable purchase authentication in Google Play settings.

Discuss the psychology of in-app spending

Help your child understand that games are designed to make them want to spend. Explain how premium currencies disguise real costs and how limited-time offers create false urgency.

What to do if it happens

  1. 1Contact the app store (Apple or Google) to request a refund — both have processes for unauthorised purchases by children.
  2. 2Remove all payment methods from the device immediately and enable purchase authentication.
  3. 3Talk to your child calmly about what happened, focusing on the lesson rather than punishment.

Related topics

This is practical educational content to support families. For case-specific concerns about a child's safety, contact the NSPCC helpline on 0808 800 5000 or your local safeguarding team.

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Last reviewed: 2025-06-15

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