Exploring Security and Privacy Challenges for Banks in the Evolving Landscape of the Metaverse

Abstract

The metaverse presents an unprecedented opportunity for banks to innovate and transform their services, offering immersive and interactive experiences to customers. However, this virtual frontier comes with a myriad of security challenges that must be meticulously addressed to safeguard sensitive information, prevent fraud, and ensure regulatory compliance. This chapter explores the transformative potential of the metaverse for banking and examines the key security challenges such as data breaches, cybersecurity threats and virtual property theft. It presents comprehensive strategies to address these issues, including robust encryption, multi-factor authentication, blockchain technology, and user education. By implementing these measures, banks can ensure a secure, resilient virtual banking environment, safeguarding sensitive information and maintaining regulatory compliance. The chapter emphasizes the importance of continuous monitoring and proactive security practices in navigating the evolving digital landscape.