en
Back to the list

Status of Data Protection and Privacy in the Metaverse

source-logo  cryptoknowmics.com 26 May 2022 04:10, UTC

Cyberspace has continuously evolved since the beginning of the Internet, and the metaverse is set to become the largest technological revolution of this century. The virtual world will change human social interaction, and economic development, and usher in an era of digitalization. It creates an even more embodied and immersive internet. The virtual world, being a blend of both physical and digital, provides an immersive experience that allows individuals to experience different kinds of reality. However, data protection and privacy have been major concerns for the metaverse developers and users.

Privacy

The digital universe is set to collect and store personal data, relying on this personal information to digitize personal experiences in the Metaverse. Such experiences include day-to-day activities that range from entertainment to shopping activities. Providers of the virtual experience will have access to the users’ personal data, including physical locations, financial records, and biometric data. Considering Facebook joining the digital space, now referred to as Meta, relies on personal information to avail of various services. Meta collects personal data for advertisement targeting, individual identification, and health monitoring, among other features, to optimize the digital experience. The tech giant is facing a $5 billion fine serving as a penalty due to data protection issues. However, the Metaverse will combine and rely on large amounts of data related to an individual’s personal life. Protecting user privacy has serious hurdles from a legal and practical standpoint.

Device Proliferation

The Metaverse uses tools such as AR and VR. Devices employed in landing the virtual world would require sensors attached to an individual’s body and home. It is done in order to provide and generate an interactive virtual experience. Using headsets and other devices such as AR glasses presents privacy threats since live microphones and cameras will be set up inside the user’s location address. These include offices and homes. The sensor devices provide unprecedented real-time insight into individual lives. Currently, reports from International Data Corp recorded a double increase in VR and AR shipment to 2.2 million just last year. Experts predict this number will triple by 2025. These devices improve experiences in gaming systems and other virtual events, including conferences, fitness, and education in the Metaverse.

Interoperability and Collaboration

Primarily, the Metaverse focuses on allowing social interaction in a virtual space. As such, that means that the digital world should be accessible from all headsets and devices. Personal data will be shared and accessed across platforms and devices in simpler terms. Consequently, this presents a data security threat that could lead to cybercrimes in the long run. In order to mitigate this privacy challenge due to universal interoperability, tech companies need to agree to certain specific standards. It creates a connected Metaverse that can be integrated among different creators. If such standards aren’t present, tech companies will be required to license rights to underlying technologies of other companies in building their own Metaverse.

Data Protection and Privacy In The Metaverse

The legal challenges presented in Metaverse’s cybersecurity relate to the similar challenges posed by the Internet. As such, society, in general, is a target of these malicious activities, with the emergence of entirely new cyber crimes behind the unique metaverse infrastructure. For example, the Metaverse is centered on the use of cryptocurrencies that can be used to fund criminal activities like money laundering. Even the use of NFTs presents a hotbed for cybercrimes, including fraud. Also, the virtual world is prey to traditional digital malfeasance that includes hacking, phishing, and ransomware.

Duping

The Metaverse presents high risks of cheating and duping since the attackers can conceal their real identities behind avatars, multiple layers, and screens. Consider the Sotheby’s Metaverse launched by Sotheby art dealer, which deals with the digital art collections. The NFTs available in the metaverse are selected by the specialists of the auction houses. The NFTs are digitally tracked and verified using a blockchain public ledger via Ethereum. Regardless, collectors can still fall prey to replicas, counterfeits, and prints minted by cybercriminals and poised as legit authenticators.

Cybersquatting

Obscuring one’s identity through the Metaverse enables potential threats of would-be cybersquatters. These fraudsters benefit from squatting on websites that use legitimate company names. These cybercriminals leverage the reputation and goodwill of prominent established businesses. They do so by creating domains and smart contracts that belong to the victim organizations.

Conclusion

The Metaverse’s privacy and data protection status poses complex questions that point out the need for law and regulations amendments. Setting up the appropriate technological and legal measures helps mitigate these cybersecurity risks for the virtual world’s users. Violating user data protection and privacy results in negative critics and scrutiny that presents distrust towards the Metaverse. Taking legal action and amending regulations will improve the status of data protection and privacy in the Metaverse. Potential threats like fraud and identity theft could violate the personal privacy of virtual space users. Using human-computer interface (HCI) technology, the Metaverse allows interactions through a 3D virtual space, posing complex privacy and data security challenges. Issues like user anatomy would hide user identities or provide false personal data, a simple example being making children appear as adults. Emerging tech companies should be aware of these privacy issues and take legal actions to resolve data protection challenges in the Metaverse.  

cryptoknowmics.com