Data privacy and cybersecurity attorneys say there are steps entities can take to protect themselves as they plunge into the hype of the metaverse, being mindful that in its current state, the space is unregulated and brimming with data and cryptocurrency ripe for the taking.

Big concerns in the space are of gauging the security of digital wallets, understanding the evolving terminology, and scrutinizing the "grey areas" between different "worlds," said attorney Richard Grungo, founding member of the first personal injury firm in Decentraland, a virtual world. 

"There is so much change going on in this world so quickly it's akin to the Wild West," Grungo said. "In any emerging technology, there is going to be a need for identification of risks, identification of your risk profile and then what you can do to minimize it."

One of the areas Grungo and his firm especially are watching is virtual wallets. In order to purchase currency, one needs a digital wallet to then go about storing their NFTs and cryptocurrency.

"When we purchased our first piece of property in Decentraland, it was a cumbersome process," he said. "Each world has its own currency and that brings conversion rates into play. It's a lot to learn. When you buy property and hit send on your digital wallet, you hold your breath, keep your fingers crossed, and wait for the confirmation that the payment went through."

Theoretically, Grungo anticipates a scenario where an uninformed person might purchase and store their currency in a wallet that may actually be a scam, standing to lose significant sums in the process in what he calls a "crypto robbery."

Grungo's hypothetical had actually happened before, but perhaps the more formidable reality is that in a situation such as that, being on a platform like Decentraland means there are no "police" or "authorities." 

Grungo said his advice to firms looking to open offices in the metaverse would be to be vigilant in their research, highlighting that the space as it is today is largely lacking in uniformity.

"Knowing the terminology and doing your homework into what world is right for you is going to be the best means for protection," he added. "Because new software, new apps, new products, and words coming out each day—the gaps in between them, that's where the holes will be that guys will capitalize on."

When a technological space is so fast advancing, attorneys encourage firms looking to make the entry to keep an eye on what's coming, because the future metaverse and its cybersecurity risks will likely look different from today.

Charlyn Ho, Perkins Coie privacy and technology partner, encourages a step back to reassess what those interested would consider the "metaverse" to be.

She refers to today's version as the "traditional metaverse," and she envisions a more full-body immersive experience in the coming years as the term comes into fruition, opening doors for immense private data logged into virtual reality.

"Even with the more traditional immersive technology that exists today, it involves a lot more sensitive data about peoples' homes and their biometrics," Ho said. "Any type of commercial technology collects way more data than an Xbox or PlayStation controller would."

Ho said she does not think many users entering the space fully grasp the risks associated with the metaverse and its future.

"We have privacy lawyers continuously struggling with how to provide more information to the consumer so they can make their own decisions about their own data or their children's data," she added. "Average consumers aren't able to parse 100 different 5G notices as they pass from one [metaverse] store to another, just as you would in a real mall."

While Ho anticipates this will take some time, she and Grungo agree that the future of cybersecurity in the metaverse will rely on interoperability between different "worlds." Until there is a set of privacy regulations or increased uniformity between the digital platforms, users are going to have to be independently careful.

Attorney Evan Schein of Berkman, Bottger, Newman & Schein encourages firms seeking to enter the metaverse to first hire a cybersecurity firm to advise them.

"In order for [the metaverse] to be a place where potential is fully realized, it is going to have to provide protection," Schein said. "Educating yourself about the risks is the only way to protect yourself as of right now."

Isha Marathe is a New York-based legal technology reporter, covering new things happening around privacy law, e-discovery and cybersecurity.