Virtual Crime

1ST YEAR ON THE LIST

A lack of comprehensive legal frameworks for XR and the metaverse may exacerbate the frequency and severity of cybercrime in emerging virtual environments.

KEY INSIGHT

Cybercrime, estimated to have led to the loss of trillions of dollars in 2021 alone, is expected to spread and evolve as web- and app-based digital interfaces transition to immersive virtual experiences in the metaverse, exposing new vulnerabilities.

EXAMPLES

Since the dawn of the internet, online actions have had the potential to damage users’ reputations, livelihoods, bank accounts, and well-being in the real world. As those online actions become more personalized and immersive, the scope and complexity of cybercrime, as well as its repercussions, are expected to increase. Virtual currencies, especially those stored and exchanged on anonymized blockchains, are well suited for money laundering and illicit purchases. Deepfakes and hyperrealistic avatars can be used to falsely gain the trust of an individual and exploit them, particularly in metaverse workspaces. Bullying and harassment, already a scourge of social networks that has caused devastating real-world consequences for the victims, are likely to have an even deeper impact when insults and threats are delivered by avatars with real voices and animated 3D forms. Plus, as more users link their metaverse profiles to personal information like biometrics, data breaches could prove far more costly.

DISRUPTIVE IMPACT

Historically, tech companies have failed to take responsibility for crimes committed on their platforms. Thus, it is incumbent on lawmakers and cybercrime units to familiarize themselves with emerging virtual platforms if they hope to establish legal frameworks and law enforcement practices to make the metaverse safer for the average user.

EMERGING PLAYERS

• Harvard’s Berkman Klein Center • Interpol • Law enforcement cybercrime units