The interoperable, dynamic and open space known as “Metaverse” will digitally disrupt many sectors. It is set to offer exceptional experiences for customers in banking, financial services, insurance, real estate, media and entertainment, as well as gaming. It is as all-encompassing as it is lucrative.
According to experts, investments in the Metaverse surpassed $120 billion in the first half of 2022 alone and will generate up to $13 trillion by 2030.
This shows that many companies have started their integration into this new environment, already taking into consideration the massive potential of Metaverse inclusion. But to succeed in the Metaverse, businesses must consider how they will collect, use and manage data as they enter this uncharted virtual territory.
One of the primary concerns is that the Metaverse is a place where users can interact anonymously, which makes it difficult to track who is doing what. This anonymity can lead to online harassment, cyberbullying and other forms of malicious behavior.
And the shift towards these needed protections is not as easy as it seems; it necessitates a lot of procedures at the security level. The data-driven opportunities of the Metaverse hold privacy and data security risks as well as legal compliance challenges.
As far as security is concerned, the Metaverse needs to be very agile and flexible in adapting its cybersecurity and privacy programs in order to stay in step with relevant technological changes. Regarding the legal aspect, the current applicable laws and regulations currently lag behind the rapid development of the new technologies they’re designed to address. Nowadays, many countries are scrambling to draft laws to govern AI development as well as regulate the collection and use of biometric data.
However, despite this current dearth of specific legal guidance, as more businesses plunge into the Metaverse and virtual life becomes mainstream, companies will need to strengthen their approach to Metaverse-related privacy and cybersecurity risks. In other words, Metaverse should have its own specific data laws. And until the issuance of these laws is complete, these companies will be left to draft their own protection plans and hope for the best.
A Protection Plan Before Diving In
As a basic tenet, companies must understand the purposes of their data collection efforts: what data do they plan to collect? For which uses? And with whom are they going to share this data?
As a first step, companies diving into Metaverse should create an inventory of information assets and prepare data flow maps to realize the lifecycle of data generated in the Metaverse. This will enable the business to make strategic decisions at the outset. Companies that treat the Metaverse as a digital playground or testing lab without thinking about information protection will likely have a short life in the Metaverse. This is especially true in a world where information collection is everywhere.
A Privacy Program That Adheres to Global Principles
Even though the full application of laws in virtual worlds is still a ways off, companies entering the Metaverse should build an accountable privacy framework that adheres to common global principles. A “transparency framework” could be among these values. Additional focuses can include individual data protection rights; the integration of appropriate security safeguards; adopting a risk-based approach to privacy protection and responsible innovation; and ensuring accountability for data processing in the Metaverse. And all of the above can be corroborated by incident response measures.
Readiness for When Things Go Wrong
Due to the daunting amount of nefarious opportunities in this virtual environment, the risk of security incidents is very high. Companies operating in the Metaverse should have their incident response plans at the ready to anticipate any new challenges and threats they may encounter.
On the data privacy front, there should be recourse for users who are the subject of Metaverse-related privacy infringements and data misuse. Businesses operating in the Metaverse should consider in advance how they will address these sorts of violations and what punishments they will enact.
Data Security Protections Implementation
As the Metaverse continues to evolve, new threats will inevitably emerge. And given the high potential for cyberattacks of every kind (including social engineering, data breaches and virtual identity, to name a few), data security is a challenging but necessary requirement in order to succeed on this journey. To this end, securing their software development should also be a top priority for all Metaverse companies. This should include rigorous software testing, secure coding and appropriate account security features.
In addition, certain technologies can help mitigate anticipated security risks in the Metaverse. For example, the blockchain ecosystem can aid in preventing the theft of digital property such as NFTs, and AI technology can assist in fraud detection and prevention. As the Metaverse takes shape and new security threats are identified, companies should work together to develop a set of Metaverse-specific protocols to guide best practices for data security in this new world.
The Metaverse is still growing — still taking shape — but now is the time to prioritize privacy and security to ensure a safe and enjoyable experience for all users moving forward.
