Scenario 2: Going on a Date

Setting the Scene

Say you are in a long-distance relationship, or that you want to explore the dating scene, but you can't go on a physical date because of distance or other life commitments. Therefore, to connect with your loved one or meet someone new, you settle on visiting a virtual art gallery in the metaverse for convenience. In the metaverse, you use your avatar to interact with your date and others while browsing the artists' digital artwork, such as their NFTs - a digital token that represents a non-replicable piece of information built on top of blockchain technology and enables decentralized, fast, secure, and accountable exchange. [23] Your experience feels just as it would be in a physical art gallery, and you end the date with a purchase of digital art using cryptocurrencies.

Risk 1:
Harassment or Assault

You are concerned about sexual harassment and assault, inappropriate language use, and avatars contacting each other in the metaverse. You are also concerned about how to report such actions or the jurisdiction of the crime, especially when international characters are involved.

Risk 2:
Identity

You are concerned about verifying the identity of the individuals you meet and interact with in the metaverse. How do you know the people you meet are exactly who they say they are?

Risk 3:
Ownership

At the gallery, you want to buy a piece of artwork or an NFT image as a gift for your date. You’re then concerned about how to pay and what ownership rights you have if you want to transfer to your loved ones. Do you own this virtual digital asset? Who is responsible for your data? Massive personal data exchange between servers that host the metaverse through AI technology, collection, and storage of data is handled differently by various entities within the metaverse.

Justification of Risk 1

Sexual assault and harassment in virtual environments is a real problem and will continue to occur unless regulations are put in place to regulate those behind the keyboard to take full responsibility for actions their avatars partake in virtual interactions.[24] Online harassment is common because anonymous users feel comfortable bullying and committing crimes without being caught.[25] For instance, Meta has had sexual harassment and assault incidence reported on their horizon platform, where a virtual sexual abuse victim, woman, shared her experience that she (her avatar) was verbally and/or sexually abused within 60 seconds of joining the platform. This case was never pursued criminally offline but could’ve lead to mental health issues and/or trauma.[26]

Justification of Risk 2

Online dating apps such as Tender, Bumble, and Grinder have many identity issues that haven’t been solved. There are catfishing incidents and other uncomfortable scenarios that can occur when users are able to fake their identities in dating scenes.[30]  An example could be individuals seeking to register on a dating site would be required to provide a government-issued identification document, and then the provider must verify the document for authenticity before granting access to the site.

Justification of Risk 3

Virtual digital assets such as NFTs are considered a form of licensing or provision services. Ownership rights lie with the owner unless explicitly stated in the contractual arrangements at the time of purchase. The NFTs are therefore considered properties, but their statuses and the asset's safety are held away from blockchain technology. In other words, the purchase of the painting does not entitle the buyer to copyrights in the artwork.[34][56]The AI algorithm system employs digital tools, models, and methods to help users understand how and where avatars move within the virtual art gallery in the metaverse. The data and avatars are located on different servers worldwide, and the metaverse platform uses AI technology to handle and process personal data. Therefore, it is a challenge to determine ownership of personal data collected while visiting the art gallery.[36]

Compensating Controls

Current Controls Risk 1

Currently, federal and state legislative laws are being enacted for civil protection, including sexual assault, harassment, stalking, and other domestic-related violence.[27] Congress is enacting a digital safety bill that would require online dating service providers to send safety awareness notifications to its members to increase awareness of safer online practices, fraud ban notifications if a member has sent or received messages from a banned member of the online dating service and to verify the identity provided by the online dating service members. [28] Corporations are putting measures to prevent sexual harassment and assault, such as Microsoft’s Space boundary, where avatars can limit the distance they can come close to each other before their arms can disappear from view or avatar movement can be halted when close to a set distance limit (say 4 feet), also measures such as Facebook’s safe zone can be activated such that no one can touch them until they signal for a safe zone be lifted.[29]

Current Controls Risk 2

Currently, federal law on Catfishing does not specify impersonation as illegal. However, it becomes illegal when catfishers engage in fraud, Intellectual Property infringement, etc. Densely populated states such as California, Texas, or New York consider Catfishing illegal by impersonation. Only Oklahoma state outlaws impersonation (using another’s picture to become someone new) [31] Dating apps mostly rely on Facebook, Google, etc., for identity and authentication, while other apps have in-app identities not recognized in other apps/sites since there is no standard identity verification mechanism implemented yet. However, other dating sites such as Tinder have rolled out ID verification by uploading a photo of a government-issued license or passport. [32]

Current Controls Risk 3

Trademark laws and copyrights are applied to the extent of relevant remedies for crimes involving virtual digital assets. NFTs currently are not regulated by state virtual currency, money transmission, or federal Anti-Money Laundering laws. However, the Office of Foreign Assets Controls (OFAC) recently considered regulating artwork which may extend to NFTs.[37]

Our Mitigation Strategies

Mitigation Strategies for Risk 1

Legislature: 

  • Enact laws and bills that will regulate online dating to require background checks for all users, information sharing, and user alerts when accounts associated with any crime are identified.

Provider: 

  • Create public awareness forums for users on online harassment and assault within the platform, and allow users to manage their privacy and security settings.
  • Develop a process in the platform, such as reporting and blocking users.

User: 

  • Build communities and forums that will create rules at different levels to address user issues and concerns. For instance, in Second Life Linden Lab allowed users to build communities with their leaders, who would punish users who break the rules, such as temporary bans or permanent bans from accessing the platform.[50]

Mitigation Strategies for Risk 2

Legislature: 

  • Enact laws that will ensure reusable, privacy-first, user-owned digital identity is used to access services in the metaverse. Using a digital passport and driver’s license would be ideal legislation for the metaverse and beyond.[33]

Provider: 

  • Establish ownership and control for a digital identity for users (User proprietary ownership) to standardize identity in the metaverse. Enable interoperability of digital identity (users to use their own digital identity used on other platforms)
  • Corporates to implement Face ID, biometric, and iris features for identification and authentication

User: 

  • Establish online personal safety by familiarizing yourself with terms and conditions of use, maximizing online security measures at your disposal, verifying the identity of people you engage with (review background checks if provided by the provider, do due diligence on the individual you want to date, make a custom video call, meet in public places, etc.)

Mitigation Strategies for Risk 3

Legislature: 

  • Enact laws and bills to establish clear ownership for digital assets such as NFTs, artwork images, etc
  • Establish a guide on regulation to standardize digital asset use in the metaverse (assign standard value) to enable a single standard digital asset (NFT) to be used in multiple decentralized apps in the metaverse.

Provider: 

  • Provide explicit ownership rights information to users before the transfer of digital assets like NFTs (Providing clear license terms to the purchaser is a good policy to avoid customer confusion)

User:

  • Users can adopt eIDs (digital identification cards, which are derivative of national Identification cards) for use in signing over their intellectual property rights on digital assets they purchase in the metaverse.

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