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Then you run runescape through your web browser and lose your passwords as you typed them in to your infected browser.
While runescape was the path people lost their details in (because most people just use the same password for everything) it was never actually runescape itself.
runescape isn't running through a web browser anymore so even if you have an awful infected browser running your web pages, typing your password into runescape login is fine.
I know you mean well, but you have no idea what you're talking about. It's better giving no advice than bad advice with these things.
Keyloggers still exist. Mostly it is done by tricking users into downloading a dodgy version of third party clients, because people don't like using the vanilla client. Runelite, the most popular client that is used for example has often been mimicked, where these people make an identical looking website in the hope you believe it is the real thing and download their dodgy version of the client.
The good news is if you use the steam client that is of course guaranteed to be safe. Likewise if you wanted to use Runelite yourself, it has Jagex's blessing so they have a direct link to it on the RuneScape website. As long as you are careful and use due diligence you should be fine.
Oh I almost forgot to mention, but Jagex have made a launcher as well which again you will be able to trust to launch a legit and none tampered version of the clients.
The OP was asking if Runescape is "still dangerous to play"
My response was about how it was never Runescape itself that was "dangerous" but there is an understandable background to how information like that spread.
The full truth behind the "Runescape gets you hacked" was is that Runescape in 2004 was played by actual dumbass 11-14 year old kids (myself among them).
That army of idiot children didn't just play Runescape on their schools Pacard Bell computer, they also typed "b00bie photos free" into the search bar and clicked the top link, a site often created exactly to bait kids like that so people could keylog their parents bank / identity info.
I never did say keyloggers no longer exist, I just brought up how Runescape got understandable but wrong reputation as an unsafe program, all the parents knew about was that "my kid uses Runescape on the computer, now I have a virus"
The kids were doing more than playing Runescape on the family computer, lots of which they wanted to hide from their parents.
I did get what you were saying, but it's also based on how things were 10+ years ago and I am thinking of the here and now, so your post sent alarm bells off in my head. I just wanted to give him fair warning. I am sorry, as it was not meant to be condescending but ultimately it ended up being exactly that. I hope you understand!