Trying to cheat is trying to cheat. No way around it. If he had succeeded in actually cheating, it would've made him a cheater.
I wouldn't sugar coat it.
The last thing we need to do is start to coddle children more than we already do. Give them this give them that. So they have no motivation to work.
If you're going to be gullible and buy into some scammer, it's no different than if we're and adult buying into a paypal scheme to steal all your money.
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I agree that trying to cheat is trying to cheat. A kid being asked if he'd like an easy way to boost his character 10 levels (in an attempt to gain control of his console) is not trying to cheat. You may see this as semantics but I don't. This was child predatory behavior. It started and ended there. Simple as that.