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Intervention Could Help

Some countries like the United States, the UK, and even Germany are considering restricting the Second Life virtual community, or at least monitoring financial transactions.  The U.S. is already on the way to eliminating Second Life, just like it has already done-away with online casinos.  Germany is currently investigating possible fraud committed through the virtual community, and the British government is expressing concern over the possibilities that the cyber world could foster crime, fraud, money laundering, and as much as terrorism.

Highlighting the possible negative effects of the international cyber community Second Life is Steven Phillipsohn, a noted fraud litigation solicitor and who also serves as chairman of the FAP's cybercrime working group. He elaborates on the dangers, “There's nothing virtual about online crime, it is all too real. It is time government took this seriously. The legitimate benefits of virtual communities will prove enormous, but people need to be aware that this cutting-edge technology has a darker side. Money laundering is the obvious risk. There will be a migration of fraudsters into these sites when they see all of the opportunities.”

The U.S. has already used the FBI to investigate Second Life and to enforce its anti-online casino gambling legislation, and now it looks as though the UK is considering regulations for the virtual community as well. The main reason most countries can agree the community needs to be regulated is because of the possibility of undetectable financial crimes. Though the exact process and official departments that would be responsible for monitoring the community are still in the air, it looks as though this is the direction the government is heading.

In response though to the criticism, and observations about crime within the virtual community, a Linden Lab’s spokesperson commented on the standards the company expects of players. “Second Life's terms of service make it clear that each resident is morally, socially and legally responsible for their opinions and behavior in-world, and that illegal activity will not be tolerated. We have worked consistently with law enforcement, countering any illegal activity that we are made aware of, and will continue to co-operate with any legal or regulatory authority.” This makes it clear that no action will be coming from Linden Labs any time too soon unless the anti-gambling legislation forces the company to move its base of operations.