Second Life could become dangerous locale

London -- British legal experts question whether the lax oversight of the online community Second Life could potentially create a haven for criminals and terrorists.

A report from Britain's Fraud Advisory Panel found that the limited regulations within the "virtual online community" could lead to money launderers and terrorists using it as a crime locale, The Telegraph reported Sunday.

The report proposes adding real-world financial regulations to the online community in order to prevent illicit groups from exploiting its limited guidelines.

"The legitimate benefits of virtual communities will prove enormous, but people need to be aware that this cutting-edge technology has a darker side," FAP official Steven Phillipsohn said. "Money laundering is the obvious risk. There will be a migration of fraudsters (sic) into these sites when they see all of the opportunities."

A spokesman for Linden Lab, the company that created Second Life in 2003, told the British newspaper it will cooperate with authorities in any necessary future efforts.

Copyright 2007 by United Press International.