US spooks see Sadville as potential terrorist paradiseBy Dan Goodin in San Francisco
February 7, 2008 22:26 GMT

US intelligence officials are growing increasingly wary of Second Life and other virtual worlds, which they say could soon become havens for terrorists, money-launderers and criminals engaged in corporate espionage.

The virtual "communities" offer many of the same amenities of the real world, including banks, multiple currencies, shopping malls and private buildings that can only be accessed with a password. At the same time, the companies operating these virtual wastelands typically don't log conversations between users or keep records of which avatars gather in particular locations.

"Unfortunately, what started out as a benign environment where people would congregate to share information or explore fantasy worlds is now offering the opportunity for religious/political extremists to recruit, rehearse, transfer money, and ultimately engage in information warfare or worse with impunity," according to a paper recently prepared by the government's new Intelligence Advanced Research Project Activity.

It was reported here by The Washington Post. The CIA has already set up several virtual islands where training sessions and unclassified meetings are held. But the IARPA paper calls for more involvement, including tests by cyber warfare experts to gauge how virtual worlds could be used to against terrorists or enemies.

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