The Metaverse has received a lot of traction and adoption since its appearance as a sci-fi concept in Neal Stephenson’s 1992 movie. A recent report shows that the Metaverse will grow at a Compound Annual Growth Rate (CAGR) of 47.6% and reach a projected $1,527.55 billion by 2029. So far, tech giants like Meta and Microsoft have invested heavily to build Metaverse solutions that offer unlimited business opportunities. However, just like the internet, the adoption and rise of Metaverse create cybersecurity risk for its users, with malicious actors searching for opportunities to exploit.
In this article, we will explore the basis of Metaverse cybersecurity, recent hacks, and cybersecurity threats businesses should prepare for as they adopt Metaverse solutions.
What is Metaverse Cybersecurity?
The Metaverse is a virtual universe created by the communication between digitally connected virtual devices and other technologies. It allows users to interact using digital avatars, aiming to create a virtual world complete with buildings, superstores, schools, and companies for conducting training or meetings. However, this expansive digital realm isn’t without its challenges; many top players have faced scrutiny due to Metaverse-related crimes and hacks. To engage with the Metaverse, users will require passwords, login modules, data storage, and more.
However, with its limited regulation, and the nature of the interaction, users’ real identity is hidden behind multiple layers of encryption, which means we need new approaches to keep the Metaverse cyberspace safe from malicious actors. This is where the practice of Metaverse cybersecurity comes in as a subset of cybersecurity dedicated to creating security measures for businesses to safeguard their Metaverse activities.
Can the Metaverse be Hacked?
The Metaverse relies on internet infrastructure and tools such as AR & VR technologies, which hackers can exploit. Recently, researchers at Rutgers University-New Brunswick developed an eavesdropping attack called “Face-Mic,” targeting AR/VR devices to expose the vulnerabilities in the Metaverse. Once a malicious actor accesses these devices, they can conduct various Metaverse crimes and scams or steal data to sell on the dark web.
Metaverse Cybersecurity Hacks and Scams in Recent Times
Since Facebook rebranded to Meta to signal a change in business trajectory, the Metaverse has gotten more popular. Backed by Web3 technologies, including NFTs, multiple scams have been targeting different users, from phishing to the rug pull and malware attacks. For example, in 2022, Tracy Carlinsky, an online fitness coach, lost her virtual real estate worth over $20,000 to a phishing attack. Malicious actors created a fake link that mimicked her sandbox login link, clearing out her account when she entered her login details.
There have also been NFT scams in the Metaverse that targeted users with promises of mouth-watering returns. An example is the “Evolved Ape” creator, who disappeared with over $2.7 million a week after launching. The NFT project was built on a story-based theme where a collection of 10,000 trapped apes fight for survival in a lawless land. While these scams have been widespread, the evolved ape community is still building on the initial foundations but with better regulations.
In another NFT phishing scam, Opensea users lost about $2 million to hackers during a contract migration. The hackers used phishing emails linking to fraudulent websites to conduct these hacks. Although the Metaverse is still in development, we should expect other variations of Metaverse-specific hacks, like identity theft and financial fraud, in even more sophisticated forms in the future.
What Cyber Threats Can Businesses Entering The Metaverse Expect?
For companies entering the Metaverse space, there are many growth opportunities. For example, with the growing adoption of remote work, companies can utilize the Metaverse to conduct onboarding, product simulation, meetings, and employee training in an office setting. There’s also the risk of being the target of cyberattacks due to the extensive data generated by Metaverse connections and employee negligence resulting in external access to the company’s data.
Here are three main potential cyber threats companies should expect as they adopt Metaverse solutions.
Bots & DDoS attacks
Recently, bots and AI-powered hacks have gained lots of traction thanks to their ability to replicate malware across multiple locations or adjust to counter cybersecurity measures. In 2021, malicious bot attacks comprised 60% of all cyberattacks on Metaverse companies. Generally, hackers can deploy bots to impersonate legitimate users and overwhelm the system with artificial traffic. Subsequently, malicious actors can initiate DDoS attacks to block users’ access to Metaverse resources, steal data, or deploy ransomware while the system is down.
Identity Theft
Companies with remote work setups will benefit from Metaverse adoption, but they will also face the challenge of third-party access points. While most company systems might be secure, malicious actors can create duplicate websites for your organization, allowing them to collect login details from unsuspecting employees. There have already been reports of avatar scams on platforms like Roblox, where hackers try to convince users to grant them access to their avatars to steal their identity. In addition, VR/AR tools aren’t 100% secure, and hackers can steal users’ data and use the information to pose as legitimate employees to access proprietary information or cripple the company’s infrastructure.
Blockchain-related Cybercrimes
One of the drivers of the Metaverse is blockchain which allows users to complete financial transactions securely. However, the crypto industry has had a lot of hacks in the past, like the Anxie Infinity hack. In the Metaverse, most companies can set up super stores, which allow customers to explore items virtually before making a purchase. We have also seen Metaverse real estate Decentraland, where users can purchase land in the form of NFT. These transactions will result in cybersecurity risk for consumers and companies alike. For example, users can lose access to their assets due to phishing attacks, and companies can lose their proprietary data if hackers gain access to their platform through customers’ access points.
How to Prepare Against Cyber Attacks in the Metaverse?
Metaverse technology isn’t going anywhere anytime soon, and as technology advances, more applications and adoption in different spheres will exist. As a forward-thinking company, you must implement necessary precautions to protect your privacy while using these tools.
Here are some steps you can take to prepare against Metaverse cybersecurity threats.
- Adopt 2FA security to safeguard all access points and prevent unauthorized access.
- Implement data protection and regulatory compliance laws to strengthen data privacy and limit data collection.
- Develop a community-driven moderation strategy to enable users to report or flag inappropriate behavior before it escalates.
- Adopt AI-enabled security tools to detect anomalies and behavior-based threats, allowing you to identify threats and prevent attacks before they happen quickly.
- Partner with Metaverse cybersecurity experts to create a robust security protocol to protect users’ personal and financial data.
At CyberClan, we help organizations build a more robust and comprehensive cybersecurity strategy through our proactive risk management services. Our methodology identifies cybersecurity risks and vulnerabilities, builds secure architecture, and strengthens existing systems. We deploy services like Phishing Simulation Programs, Tabletop Exercises, Incident Response Plans, and Policy Development to help you protect your systems and avoid litigation from data breaches.
Contact us to implement a robust and secure security infrastructure for your Metaverse.
