While not a relatively new term, its popularity has grown exponentially since 2022. This is of course the term ‘metaverse’ and everything that is associated with it. Those that are at the current forefront of this trend expect the technology to be truly ready by easily the second half of the 21st century.
Businesses that have already started to dip their toes into areas such as Web 3.0 and blockchain will be able to benefit immensely when the metaverse becomes a truly active experience. There are technologies out there not yet invented that will also help generate revenues with the dawn of such a metaverse.
Yet with all things related to revenue generation and the creation of money and wealth, there is the darker side of fraud and other threats that have been plaguing the internet already today. That’s because those that commit fraud will also stay at the forefront of what is new and use that as their next opportunity to be able to make their money. The metaverse itself will be akin to the real-world economies, and eventually, that could translate to extensive amounts of money being moved on a daily basis, making it a prime target for these fraudsters.
Those that currently need to be under review and could be the weakest link are the newer technologies that are related to the future of the metaverse, such as blockchain and especially cryptocurrencies. This was apparent when crimes pertaining to transactions that were blockchain-based hit almost $8 billion back in 2021.
Does that mean the metaverse is next?
Blockchain is an excellent target due to the trustless nature of its technology and basically not having anyone really to go to complain and try to get funds back. While everything is transparent in crypto as it’s on the transaction ledger, it’s really hard to reverse those transactions.
The current iterations of the metaverse enable users to be able to have multiple accounts per person. This can lead to rampant abusive issues where someone creates various accounts to take advantage of promotions and discounts that are targeted to newer users as a sign-up bonus. This can happen early on with these platforms looking to secure their early leads for market share.
Similar issues we experience today with existing platforms, especially social media platforms and influencers, can spill over to the metaverse as well. A classic case of fraud related to influencers is either clicking on links that are fraudulent or providing data that should be private because it appears to be going for a promotion or purchase related to an influencer. Fraudsters can mirror these and use these as gateways to defraud people.
Companies need to be aware of all major potential issues that can arise, especially with each new piece of equipment that is launched for the metaverse and with each new iteration of the metaverse itself. There will be a wide range of acceptance with each launch, which will also be ripe for opportunities for fraudsters.
What can be done to beat fraud in the metaverse?
There are plenty of ways the platforms themselves can help support an environment with little to no fraud occurring. This can be limiting the accounts people can set up, using AI to kick out users who aren’t authentic or bots and those deemed suspicious. They can also ensure to tie in security features such as multi-factor authentication, helping to make it harder to have a user make multiple accounts.
Part of this multi-factor authentication can include IP whitelisting and digital fingerprinting of devices as well. This can help eliminate emulators or clones of these devices that fraudsters would create to cause harm.
Account validity could also include new features such as ID verification and even verification through social media channels and overall presence. This can help to show that the user is, in fact, who they say they are and verify their only account.
This area is only going to continue to grow, as well as other channels that are related, such as gaming and eSports, as well as expansions into the crypto universe. Helping to prevent fraud with these products can help be repurposed in the future with fraud prevention in the metaverse.
