ENISA Highlights Security Risks of Virtual Worlds, MMOGs

In 2007, malware aimed at online games and virtual worlds increased by 145% as 30,000 new programs came out designed to steal passwords for those programs, according to a new report from the ENISA [PDF]. The European agency counts 1 billion registered users for MMOGs and virtual worlds, racking up real-money transactions for virtual goods at $2 billion by the end of 2007. A 1,500-person survey in the report, though, found that 30% of users had lost virtual property due to some form of fraud.

"While annual real-money sales of virtual goods is estimated at nearly 1.5 Bn Euro worldwide, users can do very little if their virtual property is stolen. They are a very soft target for cybercriminals,"  Giles Hogben, editor of the report put together by a group of industry, academic and government experts, said in a statement. "There are 1 Bn registered players of online games worldwide and the malware targeting them affects everyone with a computer connected to the internet."

The group, which includes familiar names like Richard Bartle, EVE Online economist Eyjólfur, and Virtual Policy Network's Ren Reynolds, laid out a list of topline risks and recommendations, ranging from the expected fraud and child protection issues to general privacy problems.

"In privacy terms, avatars are no different from other forms of online persona," explaines the report. "Users may even disclose more personal data because the MMO/VW gives a false sense of security. There is also a trend towards behavioural marketing by 'eavesdropping' on avatars."

In fact, according to the survey, 39% of users thought that avatars didn't pose any risk to personal data, even though a fair amount of information can be deduced about the user from the get-go--even before factoring voice chatting.

That runs a risk for real-world reputations, explains the report, but it seems like the real money for criminals is in, well, real money.

The survey showed that 56% of users did some sort of business within an MMO or virtual world on a monthly basis, trading virtual goods and money.  Most transactions, though, occur unofficially in the gray secondary market. That creates an opportunity for decidedly criminal activities, like the massive money laundering scheme a Korean group was recently arrested for.

Fortunately the group also offers a wealth of recommendations. If you're at all interested in the security of virtual worlds and the risks, I'd recommend checking out the full report. [PDF available here]