entirely new set of challenges . A virtual world will essentially be borderless ; therefore , laws and regulations will need to take a global approach , along with agreeing on punishments . What will the consequences be for the homicide of other avatars or sexual assault ? This will be an interesting space to watch in the future .
Nexus to financial crime
A report by Grayscale estimates the metaverse to be a trillion-dollar industry in the future . 8 This , paired with little current regulation , may make the metaverse an attractive platform for cybercriminals to commit financial crimes . As the metaverse is built on the blockchain , cryptocurrencies and decentralized finance ( DeFi ) protocols will make up the backbone of the technology . The DeFi ecosystem may be vulnerable to criminal usage due to its nature , as it uses peer-topeer and pseudonymous technology . Transactions within the virtual world will use virtual currencies , creating the possibility of money laundering and fraud . Cybercriminals may also attempt to commit financial crimes similar to the physical world . For example , they may infiltrate wallets , commit virtual identity theft and layer funds using virtual assets . 9 Therefore , understanding the underlying technology now may help analysts fight financial crime in the future .
To combat emerging threats and horizon-scanning risks , compliance professionals can engage in future analysis to examine trends and identify where future resources should be directed . Professionals trained to analyze emerging technologies and threats regarding both bank security and new typologies to commit financial crimes can conduct proactive analysis to prepare for future crime trends . For financial institutions ( FIs ) and money services businesses within the
U . S ., the Financial Crimes Enforcement Network listed cybercrime as a priority , indicating that it should be a top concern among FIs , which will need to manage risks surrounding cybercrime . FIs may potentially face cyber risks from emerging technology , especially those dealing with customers who may be active gamers or those using DeFi platforms . By staying proactive and conducting horizon scanning threat analysis , financial crimes involving exploiting emerging technologies may be identified more quickly and easily .
Conclusion : Horizon scanning and looking ahead
Although the metaverse as an interconnected virtual world is still just a concept , numerous separate virtual worlds exist today . Within these current virtual worlds , instances of crime and violent behavior have already emerged . It is important to build awareness of the potential threats within virtual worlds and develop training programs around cyber security and forensics to better prepare for the future . To do this , experts recommend staying up-to-date within the emerging technology field through proactive education and training , such as certifications . FIs also should consider building trust and partnerships with LE , tech companies and those in cyberspace to further raise awareness and share information in this increasingly virtual world .
Tiffany Polyak , CAMS , CGSS , AFC associate , Threat Finance , ACAMS , tpolyak @ acams . org
1
Olivia Petter , “ Why Is No One Taking Sexual Assault In The Metaverse Seriously ?” British Vogue , March 20 , 2022 , https :// www . vogue . co . uk / arts-and-lifestyle / article / sexual-assault-in-the-metaverse
2
Andrew Amos , “ Police arrest man for allegedly abducting 13-year-old they met on Roblox , VRChat ,” Dexerto , December 29 , 2022 , https :// www . dexerto . com / gaming / police-arrest-man-for-allegedly-abducting-13-year-old-they-met-on-robloxvrchat-2019953 /
3
Suraj Lakhani , “ The Gamification of Violent Extremism : An Empirical Exploration of the Christchurch Attack ,” Global Network on Extremism & Technology , June 10 , 2022 , https :// gnet-research . org / 2022 / 06 / 10 / the-gamification-of-violentextremism-an-empirical-exploration-of-the-christchurch-attack /
4
“ Darkverse ,” Trend Micro , https :// www . trendmicro . com / vinfo / us / security / definition / darkverse
5
Jurgita Lapienytė , “ Darkverse : metaverse ’ s criminal underground out of law enforcement sight ,” Cybernews , October 14 , 2022 , https :// cybernews . com / tech / darkverse-metaverse-criminal-underground /
6
“ Beware the Darkverse and the Cyber-Physical Threats it Will Enable ,” Trend Micro , August 8 , 2022 , https :// newsroom . trendmicro . com / 2022-08-08- Beware-the-Darkverse-and-the-Cyber-Physical-Threats-it-Will-Enable
7
Julia Mutzbauer , “ Researchers warn of darkverse emerging from the metaverse ,” CSO , August 24 , 2022 , https :// www . csoonline . com / article / 3670576 / researchers-warn-of-darkverse-emerging-from-the-metaverse . html
8
Matt Swayne , “ Grayscale Report : Metaverse Poised to Grow to $ 1 Trillion in Annual Revenue ,” The Metaverse Insider , November 25 , 2021 , https :// metaverseinsider . tech / 2021 / 11 / 25 / grayscale-report-metaverse-poised-to-grow-to-1-trillionin-annual-revenue /
9
Savannah Fortis , “ Identity in the metaverse at risk , says former Windows architect ,” Cointelegraph , December 15 , 2022 , https :// cointelegraph . com / news / identity-in-the-metaverse-at-risk-says-former-windows-architect
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