The global police agency Interpol is investigating how the organization could police crime in the metaverse. 

The world’s leading police organization, Interpol, is taking proactive steps to tackle potential Crimes in the Metaverse. With the rapid development of technology, the metaverse has become a hot topic of discussion and a potential platform for a range of criminal activities, from harassment to identity theft. Recognizing this potential threat, Interpol Secretary General Jurgen Stock has announced that the organization will be conducting an investigation into how it can police crimes in this virtual world.

Recognizing the Potential Threats in the Metaverse

Stock emphasized the importance of Interpol’s involvement in the metaverse, as criminals are becoming increasingly sophisticated and professional in their use of new technologies to commit crimes. He noted that while legislators and law enforcement agencies may lag behind in adapting to these advancements, it is crucial for Interpol to be proactive in order to prevent future crimes.

“Criminals are very sophisticated and professional in quickly adapting to any new technological tool available to commit crimes. We have to respond to it. Sometimes legislators, the police and our societies are a bit behind,” said Stock.

Exploring the Metaverse with VR Technology

In order to familiarize themselves with the potential crimes that could occur in the metaverse, Interpol has built its own virtual reality (VR) space. This platform allows police officers to experience what the metaverse could be like, giving them an idea of the crimes that could occur and how they could be policed.

Interpol’s VR space includes a recreation of its headquarters in Lyon, France, where users can explore the space and take immersive training courses in forensic investigation and other policing capabilities.

The VR platform also serves as a venue for virtual meetings, where police officers can come together to discuss and develop strategies to address crimes in the metaverse.

Crimes in the Metaverse: A Growing Concern

The metaverse, a virtual world, is a new frontier for many of us and an uncharted territory. However, its increasing popularity has raised a series of concerns regarding the types of criminal activities that are taking place within its virtual walls.

According to a report published in Oct 2022 from EUROPOL titled “Policing in the Metaverse: What Law Enforcement Needs to Know,” the metaverse can be utilized for various criminal activities such as child exploitation, harassment, disinformation, online abuse, identity theft, counterfeiting, radicalization, ransomware, and mass surveillance.

A recent report by Blockchain data firm, Chainalysis, shows that money laundering is one of the most prominent crimes in the crypto market. In fact, the report mentions that money laundering has spiked nearly 30% between 2020 and 2021. Another concerning issue is the prevalence of fake airdrops in the Metaverse, which has already led to numerous scams. For example, in March 2022, fake airdrop scams managed to raise around $900,000.

Phishing links have also been a cause for alarm, as they have the potential to mislead Decentraland users into clicking on a fraudulent link that could steal their funds. The majority of Decentraland users connect through their MetaMask, which makes them even more vulnerable to these attacks.

In response to these crimes, the company behind Decentraland has been working with IP protection firms, leading to the shutdown of two websites, 24 domains, and five social media accounts. However, it is important to note that other search engines may not follow Google’s lead in disabling ads on Decentraland-based searches.

According to Madan Oberoi, Executive Director of Technology and Innovation at Interpol, there are challenges when it comes to defining metaversal crime. For example, reports of sexual harassment have been documented within virtual platforms, and questions remain as to how these crimes should be classified and policed. The concern is that if these issues are not addressed in a timely manner, they may erode trust in the tools and platforms used in the Metaverse.

The need for Interpol’s involvement in the metaverse is highlighted by recent reports of criminal activity within virtual reality. In February 2022, a British woman claimed that she was verbally and sexually harassed on Facebook’s metaverse, Horizon Venues. Within 60 seconds of joining the virtual world, she alleged that three or four male avatars “virtually gang raped” her avatar and took photos of the incident. She even penned down her ordeal in a Medium post.

One aspect of concern is the increased risk of financial crimes and investment fraud within the Metaverse. With over 400 million active users and a market size of $38.5 billion, the Metaverse has become a prime target for cybercriminals seeking to exploit its decentralized nature. Many virtual companies have invested in cryptocurrency and NFTs, which have become popular and are trending. However, the lack of regulation and a centralized paradigm makes the Metaverse highly prone to financial crime such as money laundering, terrorist financing and investment scams.

DeFi and NFTs, two of the most popular financial technologies in the Metaverse, are also being exploited by cybercriminals to further their criminal activities. DeFi is based on blockchain technology, making it susceptible to hacking, while NFTs provide a mechanism for cybercriminals to commit financial scams and convert black money into legitimate assets.

The absence of financial crime regulations related to the Metaverse is exacerbating the problem. The lack of appropriate Know Your Customer measures, combined with insufficient regulations, leaves users vulnerable to cyber attacks and privacy violations. Currently, the Metaverse operates in an unregulated environment, and to protect digital assets, Web3 technology seems to be the only option for creating a decentralized ecosystem.

The rise of financial crime in the Metaverse is a growing concern for financial institutions and regulated entities, who need to identify their customers during onboarding processes. With the potential to generate up to $5 trillion by 2030, businesses cannot afford to ignore the predicted growth in the decentralized economy. Therefore, it is essential for businesses to work with industry experts to ensure that regulatory advancements in the Metaverse keep pace with the threat of financial crime.

Defining and Regulating Metaverse Crime: An Interpol Perspective

However, there is currently no agreed definition of the metaverse, making it a complex subject to understand and regulate. This is where Interpol, the international police organization, steps in. Interpol is tasked with investigating the metaverse and its related issues, but the concept is still in its infancy and the definition of a metaverse crime remains unclear.

Dr Madan Oberoi, Interpol’s executive director of technology and innovation, stated that there is a difficulty in applying the definitions of physical crimes to the metaverse. Cases of sexual harassment and assault have been reported in virtual worlds, and Interpol is working to raise awareness of these issues and make sure law enforcement personnel are equipped to handle them.

Nina Jane Patel, co-founder and head of the metaverse research organization Kabuni, emphasized the importance of regulation in the metaverse. She believes that the same laws and regulations that apply in the physical world should apply in the virtual world as well, to avoid miscommunication and disconnection between the two realms.

Interpol’s role in investigating metaverse crimes will be critical, as evidence can be located on another continent with a single mouse click. According to Interpol, almost all cybercrime has an international dimension, making the organization’s role crucial in fighting these types of crimes.