As far as I can see there are two separate issues here, in app purchases and reporting your son for fraud.
I agree that the in app purchases thing is pretty sneaky. I'm not a huge game player on my iMachines (apart from an unhealthy urge to play Freecell a lot) but I know that the whole purpose of Freemium games is to get you to buy add ons. Why else would a company give you something for free when they have had to spend time and energy on it?
It would be good if the default position is that in app purchases is not allowed but it isn't. That being the case we need to educate ourselves. There have been times when Apple have refunded money but under specific conditions. The in app purchases occurred over a short time or were the result of fraud. I have had money taken by a fraudulent app that emptied my itunes account of all of the credit. I got the money refunded by apple. The purchases took place over a couple of days, I was on holiday and not checking my emails for about a week therefore I didn't know about the purchases. This Dad allowed his son to purchase things on his iPad for
three months. Unless he had gone on a three month vacation, I cannot see how he would be unaware of the purchases being made. The amount of emails you would have to ignore would be huge. Even then I cannot believe that someone would not notice the drop in available money considering the amounts concerned.
As for reporting his son for fraud, I consider that fraud. I cannot believe that someone would have this scale of charges over this time frame and not notice unless they are like Elton John and Sting and have more money than they know what to do with. This is pretty unlikely for a Police Constable. If that is how much they earn, I'm in the wrong job