Emerging threats: financial crime in the virtual world
| Date | 30 December 2011 |
| DOI | https://doi.org/10.1108/13685201211194718 |
| Published date | 30 December 2011 |
| Pages | 25-37 |
| Author | Shima D. Keene |
| Subject Matter | Accounting & finance |
Emerging threats: financial crime
in the virtual world
Shima D. Keene
School of Advanced Study, The Institute for Advanced Legal Studies,
University of London, London, UK
Abstract
Purpose – The purpose of this paper is to highlight emerging threats in cyberspace, with particular
reference to financial crime in the virtual world, which have real life implications, as well as to
recommend ways in which the threat may be mitigated.
Design/methodology/approach – The methodology adopted consisted of an extensive literature
review on topics to include cyber crime, virtual worlds, and financial crime.
Findings – Virtual worlds such as Second Life play a key role in supporting real world activities
such as education, training and business and as such, should not be dismissed purely as a “gaming”
environment. In addition, emerging technologies coupled with the lack of legislation and regulation
within virtual worlds has created an environment where a variety of crimes can be committed without
fear of detection or prosecution. A further concern is its use by criminals as a vehicle to mask real life
crimes such as fraud, identify theft and money laundering. The question is to what extent the blurring
of the virtual and real life environments can be clarified in order to minimise the risk of abuse of virtual
environments by criminal elements, which have direct consequences in the real world.
Originality/value – This paper serves as a useful guide to alert and educate security professionals,
the judiciary, law enforcement and policy makers of the significance and the extent of the use of
“virtual” environments in cyberspace for criminal means, such as fraud and money laundering.
Findings are supported by a conclusion which includes recommendations for tackling these issues.
Keywords Fraud, Money laundering, Virtual worlds,Second Life, Cyber crimes
Paper type Research paper
1. Introduction
The significance of e-crimes as a major threat to the UK has long been recognised (SOC A,
2011; Espiner, 2011)[1]. Whilst areas of e-crime such as hacking, on-lin e child
pornography, identity theft and cyber stalking, have received much attention, crime
relating to virtual worlds in cyberspace continue to be neglected. Part of the reason can
be explained by the perception that virtual worlds are simply gaming environments in
cyberspace. However, there is increasing evidence to suggest that virtual environments
have a number of different applications that support “real” life activities. In addition,
there is evidence to illustrate that actions in the virtual world have very real implications
and consequences in the real world.
Several cases have come to light in recent years concerning crimes in “on-line”
virtual worlds involving both property offences as well as crimes against the person
(Kirwan, 2011). The virtual world is not only an environment where such crimes can be
committed, but may also be used as a vehicle to mask a variety of “real” world crimes.
Virtual worlds rely on the internet to be able to exist and operate. As such, virtual worlds
are also referred to as “on-line” environments due to the fact that one needs to be
connected to the internet to be able to access it. It therefore follows that the opposite,
“off-line” refers to the real world. (Both terms will be used interchangeably with
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1368-5201.htm
Financial crime
in the virtual
world
25
Journal of Money Laundering Control
Vol. 15 No. 1, 2012
pp. 25-37
qEmerald Group Publishing Limited
1368-5201
DOI 10.1108/13685201211194718
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