Real money can be traded for a virtual currency, which can then buy virtual assets, such as property, a car and other possessions. The issue is that there is little or no policing, so when the virtual assets get virtually vandalised or stolen, there is no-one to turn to for help.
Big brand names have realised there is the potential of a new dimension of marketing and income from virtual worlds. However, it is all too easy to copy products in a virtual world, so issues of virtual counterfeited goods are appearing.
The issues are deeper than that, because the virtual world presents a great opportunity to launder money. Imagine for a moment converting your money into virtual currency, splitting this into smaller amounts, passing the virtual funds through several layers of transactions, before converting it back into real money in a different currency in a different country. Virtual money laundering really is possible and is difficult to trace.
The European Network and Information Security Agency (ENISA) has released a report and survey on the subject. They believe that multiplayer online gamers are a ‘soft target’ for cybercriminals looking to raid the EUR1.5 billion virtual goods market, which has an estimated 1 billion players
A survey in the report shows that 30% of users have recently lost some form of virtual property through fraud. In less than a year, more than 30,000 new malicious programs have been detected, that specifically target accounts and property in online games and virtual worlds – an increase of 145%.
The ENISA report calls for the creation of an industry-wide forum for service providers to share best-practice on security vulnerabilities, and clarification of virtual property rights to give theft protection. The report also suggests that operators should work with banks, credit companies and online payment service providers to develop procedures for prohibiting virtual asset theft using chargebacks.
The interesting part of the report for myself, is the recommendation that the virtual worlds fund work on the clarification of legal issues, such as intellectual property rights and legal clarity.
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