Second Life requires "banks" get a second look, and FDIC approval

SF based Linden Labs, whose fantasy Second Life website creation is supposedly becoming more popular all the time, is also starting to find out about the risks in managing a large “virtual” population. Apparently, after wooing in users whose real lives were lacking and needed online fleshing out, the company now needs to weed out the scam artists who are anything but “fake”.

An apparent proliferation of financial scams including non-FDIC-insured banks has brought about “unique and substantial risks” that are threatening the Second Life economic structure.

Like we don’t have enough problems in the “real” economy these days, it makes getting ripped off on Craigslist or Ebay seem absolutely quaint in comparison

Caveat Emptor Virtual Citizens!

and even dumber details after the jump…


Website Ars Technica has posted a story about the virtual world Second Life banning banks as of Jan 22nd that don’t exist in the real world. One virtual bank “Ginko Financial” actually collapsed in August, taking “Linden Dollars” from users, and creators were worried about another panic.

It seems back in July, the website also had to ban gambling as a result of an actual FBI investigation that looked to see whether the virtual world was in compliance with US laws.

dumbass bank of 2nd life

1 Comment so far

  1. Troy (unregistered) on January 31st, 2008 @ 11:13 am

    "Apparently, after wooing in users whose real lives were lacking…"

    Harsh words. Has the writer ever actually explored Second Life? The membership **reflects** the world outside with all manner of individuals participating in a ‘plethora’ of activities as well as many real world businesses, universities, scientific groups, etc.

    try this on for size:

    Also concerts, actor interviews, and much more.

    Many free classes for learning how to build/create 3d/virtual works. The artist’s endeavors are astounding. And these skills can, if one chooses, lead to one finding paid work as well. Why would you want to limit how a person can experience or learn?

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